Question by n k: what kind of investment company is write for me?
I doing well in stock market, I’m thinking to open an investment company in Pennsylvania.
I want to use one of the rooms as home base business.
What kind of company is right for me? I am looking for something to allow me to deduct my utilities, rent… from my tax.
according to PA tax law I can not write-off anything unless I have a company.
Best answer:
Answer by Judy
But also in PA, you can’t deduct a business loss from other types of income, so if you are picturing some huge break on your state taxes, forget it. Plus with the 3.07% PA tax break, all you’d save on each $ 1000 of deductions is $ 30.70.
If you want to start a business, pick something you’d like and expect to do well at, don’t choose something for the potential tax deductions. Especially for PA state tax – the big tax break just isn’t there! And on your federal also, home office deductions tend to be scrutenized closely, to see not only that the space qualifies, but that the business is truly a business and you are attempting to make a profit from it, not just something to find tax deductions from.
Know better? Leave your own answer in the comments!