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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I OWN A LICENSED ADULT FAMILY HOME IN WISCONSIN. SINCE WE

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I OWN A LICENSED ADULT FAMILY HOME IN WISCONSIN. SINCE WE RECEIVE PAYMENTS FROM THE STATE FOR SEVERAL OF OUR RESIDENTS AND ARE OWNER OCCUPIED( WE LIVE I THE FACILITY) WE QUALIFY FOR IRS CODE 131. MY QUESTION IS , SINCE INCOME FROM THE RESIDENTS PLACED BY THE STATE IS NOT CONSIDERED GROSS INCOME , DO I DEDUCT THE EXPENSES ( FOOD, TRANSPORTATION ETC.) FOR THEM ALONG WITH THE RESIDENTS WHOS PAYMENTS ARE TAXABLE?

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

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How are you today?

MyVirtualCPA :

If you receive income that is not taxable, you would not be able to deduct the expenses associated with that tax-free income.

MyVirtualCPA :

You can only deduct expenses that generate taxable income.

MyVirtualCPA :

I'm truly sorry if this is not favorable in your situation. Please don't shoot the messenger!

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Do you have any further questions about this matter?

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If you have no further questions, will you please reply and let me know if I have provided you with excellent service?

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