Starting a small consulting business and claiming expenses.

[AlbertC]

Something a lot of my former colleagues and current friends have started doing is consulting work in the fields they used to work in full time. They may only take a few clients a year, but of course, there are expenses to cover! Transportation, a reasonable percentage of your utilities in your house, hiring a secretary (grandchild?), internet, etc. Naturally, these friends of mine end up with a business that generates more expenses every year than revenue.

Not a very profitable thing to do, I suppose.... unless you think about the taxes...

 

[TBN]

My brother was an electrician for 31 years, and now that he's been retired for some time, he's thinking of doing exactly what you mentioned: consulting, and potentially starting his own permanent business. He's asked me on numerous occasions to assist him with the endeavor, so perhaps I'm going to have to talk to him about what you mentioned about your former colleagues racking up higher expenses than revenues...

 

[Bill.K]

The thing is, are they doing it for money? Or because they cannot stand not working? I think there would be ways that you could mitigate the costs, such as working locally, using the amenities you already posses, use your home as your office and cut a lot of costs.