She is just getting started. We will keep everything separate, and track expenses (receipts, etc.). Would these items (braces and whitening) be legit write-offs?
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No personal expenses would never be deductible on any 1040 federal income tax return and I believe that you already you knew this before you asked this question. Is she going to be a self employed taxpayer independent contractor? In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer's trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. Use the search box at the IRS.gov website for Small Business and Self-Employed Tax Center Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more. #4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. #7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material *Starting A Business *Operating A Business *Closing A Business *Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K) http://www.irs.gov/ http://access.wa.gov/business/taxes.aspx
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