Tax advice if working for yourself in US

[mack23]

I am transferring to USA with my job. My wife is coming and to begin with will be working for herself - she will be earning money primarily from UK commissions she gets from UK clients (either as sole trader or LLC). Does anyone know where i can find some details on what items / expenses she can offset against her taxable income. For instance initally we will get a 2 bed flat and use one as an office (if things go well then maybe she gets a proper office). My work will contribute to some but not all of the rent. Could some of it be offset against her income because she uses it as an office. If she buys a computer can the full price be written off against her tax, dinners out with clients, flights to UK to see clients etc etc. All help appreciated.

[Fatbrit]

Yep -- you can claim office space in the home, computer, dinners out, travel, etc. Suggest she gets a dummies-style tax guide (available in all good bookshops!) and contacts a CPA or bookkeeper as soon as she arrives so she knows what to save and document.

[Bevdeforges]

When you get to the US, I would suggest that she find herself a tax advisor - preferably an enrolled agent - to help her with the tax side of her business. Enrolled agents are qualified by the IRS to represent clients in tax matters, and are usually quite a bit less expensive than a tax attorney or CPA (certified public accountant - like a chartered accountant in the UK).

In principle, all "usual and necessary" expenses of running a business are deductible from the revenues, but there are some cautions to observe with things like using part of your home as an office, or buying a computer that could serve personal as well as professional purposes. There are also state tax consequences to take into account.
Cheers,
Bev

[mack23]

Thanks both - makes sense - we will do both