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taqueso posted:I am a newbie small business owner. 2009 was a loss, 2010 we had a profit and I had not been filing any estimated tax because everything looked like it was going to be near break-even. I am going to be paying estimated tax for 2011. No. In fact, it's better, because no matter when you make the withholding it's treated as being paid in all year, as opposed to the estimates, which are date-dependant. Example: Come December, you find out you forgot your estimates (oh crap!). If you pay the 4th quarter estimate for the $10,000, you get nailed with underpayment interest for being underpaid all year. You do the same $10,000 through your w-2, bingo! No interest charge. Same payment. IT'S TAX MAGIC
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Apr 15, 2011 16:30
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quote:I am a newbie small business owner. 2009 was a loss, 2010 we had a profit and I had not been filing any estimated tax because everything looked like it was going to be near break-even. I am going to be paying estimated tax for 2011. Do owners of LLCs, or partners in a partnership, have the option of withholding? Something in my brain is tingling about owners of small businesses who try to treat themselves as employees, and give themselves a W-2 instead of a K-1, and who try to do withholding rather than making estimated payments. Abbi/furu/zeta can you clear that up for me?
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Apr 15, 2011 16:39
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^^ I get a W-2 and a K-1.AbbiTheDog posted:No. In fact, it's better, because no matter when you make the withholding it's treated as being paid in all year, as opposed to the estimates, which are date-dependant. Wow. That sounds much better. Do I need to file new W-4(s) to raise/lower the withholding throughout the year or can I just withhold more/less as I feel is needed? I assume I need to make the withholding at least near what I come up with from the worksheet, or is that not necessary as long as I get the money in by the end of the year?
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Apr 15, 2011 17:03
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I've been looking around and can't find a definitive answer for this. In late 2008 to early 2009 I was deployed, I understand this extended the first time home buyer's credit. We bought our home June 14, 2010. The purchase agreement was sometime early April. I found out while filing online that the homebuyer's credit has to be sent in. That's fine. It also doesn't have to be within the tax window. My wife is worried that somehow we will lose it. Right now I am deployed, so is there a time limit on claiming the credit or will I be fine waiting until Early June when I get back from deployment?
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Apr 15, 2011 19:27
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I'm just going to leave this here: http://www.whitehouse.gov/files/taxreceipt/index.htmlAbbiTheDog posted:No. In fact, it's better, because no matter when you make the withholding it's treated as being paid in all year, as opposed to the estimates, which are date-dependant. Love it. I guess there's a really good tax reason for voluntary over-withholding for December holiday bonuses.
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Apr 15, 2011 19:29
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entris posted:Do owners of LLCs, or partners in a partnership, have the option of withholding? Something in my brain is tingling about owners of small businesses who try to treat themselves as employees, and give themselves a W-2 instead of a K-1, and who try to do withholding rather than making estimated payments. S Corp owners are probably taking a W-2 already and can adjust their withholdings. LLC/LLP/partnership owners are BANNED from taking payroll and need to do estimated coupons.
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Apr 15, 2011 23:36
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AbbiTheDog posted:
Ok yeah that's what I was thinking about, glad to see I was on the right track. Doesn't that mean we need to know what entity taqueso is using for his small business?
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Apr 16, 2011 02:15
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I just paged through the thread, and didn't see this. My apologies if it was covered in the last megathread. The question: If I received a 1099B that only contains gross proceeds (no cost basis, no net proceeds), and I have no record of the cost basis, do I need to report a $0 cost basis when I file? The details: This past year I sold some stocks that were purchased under an ESOP at least a decade ago. I no longer have any paperwork (tax returns, income statements, transaction reports, etc) for the purchases, and the company no longer exists. Georgeson Securities "took over" the unclaimed shares of the old company, and cashed them out at current market value. In case it's relevant, the company was taken over by another company about a year ago, and my shares were traded for shares of the new company plus cash. My shares were lost years ago, and I paid an extra $1 per share to cash them out without physically sending them in.
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Apr 16, 2011 02:28
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AbbiTheDog posted:LLC/LLP/partnership owners are BANNED from taking payroll
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Apr 16, 2011 03:17
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AbbiTheDog posted:S Corp owners are probably taking a W-2 already and can adjust their withholdings. Yeah I have this one client who has a single member LLC and he refuses to stop paying himself W-2 wages. One day he woke up and found out that he had been turned into a toad. True story! Actually no he's done it that way for about 5 years and has never heard a peep from the IRS or CA EDD about it.
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Apr 16, 2011 07:10
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Small White Dragon posted:Why is this, incidentally? I have no idea. Unlike with an S Corp you still pay self employment tax on any profit in the company so there isn't really any benefit to doing this other than having withholding.
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Apr 16, 2011 07:11
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furushotakeru posted:I have no idea. Unlike with an S Corp you still pay self employment tax on any profit in the company so there isn't really any benefit to doing this other than having withholding. Unemployment.
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Apr 16, 2011 16:22
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I had a stint for a few months as 1099-MISC. I'm an idiot and just checked the form they sent. Non-employee comp shows $2000. According to my records I was paid $14,800. Should I just attach a letter saying there was a mistake? Should I call the employer first?
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Apr 16, 2011 18:01
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poppingseagull posted:I had a stint for a few months as 1099-MISC. I'm an idiot and just checked the form they sent. Non-employee comp shows $2000. According to my records I was paid $14,800. You should go off what you actually collected, not what the form said. The IRS uses the 1099s to tie out to your tax return (eg, if the 1099 says $2,000 and you report $1,000 gross, you'll get a matching notice). If you report more than what the IRS receives in 1099s you will not get a matching notice.
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Apr 16, 2011 18:12
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So this year was a little unique for me since I had severance from a previous company and I also moved states (I had 4 W2s from only "2" companies). Due to the extra income I couldn't deduct the few normal things I usually do (i.e. Student Loan interest and IRA contributions) so I am/was stuck with ~800 dollars owed for federal. I filed for an extension and put 100% towards it for now. Bottomline: Is there a reasonable expectation that hiring a professional will cover the amount I'd have to pay him? Extra details/Other things related to filing: A little interest on checking (tiny) some dividends on investments (tinier) Student loan interest (significant, but unclaimed due to limitations) Moved state and had ~2wk of unemployment (untaxed) from my previous state Additional: I own no property; collect no rent; bought no new cars; just about any of the additional options is "no". I'm planning on hiring my friend's advisor, but I'd appreciate any other insight.
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Apr 16, 2011 22:35
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Another question: As a PhD graduate student, I get my tuition paid for to the tune of ~40k a year. I never see any of this money, since I assume it comes out of my university right back into my university. We receive a sheet of paper every year basically telling us "We paid this much to cover your tuition this year." However, I was talking to some other graduate students and it seems like a good portion of them use that to take a deduction, even though we never actually see the money. Is that kosher?
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Apr 17, 2011 00:28
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Insurrectum posted:Another question: As a PhD graduate student, I get my tuition paid for to the tune of ~40k a year. I never see any of this money, since I assume it comes out of my university right back into my university. We receive a sheet of paper every year basically telling us "We paid this much to cover your tuition this year." However, I was talking to some other graduate students and it seems like a good portion of them use that to take a deduction, even though we never actually see the money. Is that kosher? Depends. If you have, or can get on their website, a 1099T showing tuition payments then yea you can use it towards the education deductions or credits. ChiliMac posted:So this year was a little unique for me since I had severance from a previous company and I also moved states (I had 4 W2s from only "2" companies). Due to the extra income I couldn't deduct the few normal things I usually do (i.e. Student Loan interest and IRA contributions) so I am/was stuck with ~800 dollars owed for federal. I filed for an extension and put 100% towards it for now. Bottomline: Is there a reasonable expectation that hiring a professional will cover the amount I'd have to pay him? You will probably get more than enough insight and over the long run to cover the cost of meeting with him. For example is there any specific reason why you are making contributions into a traditional IRA(you mentioned the deduction for it) instead of a Roth IRA(pay the tax now)? If you made enough money to have things like student loan interest phase out your paying taxes at a 25%+ level. Tax rates are actually pretty low historically, so the chance of them being higher when you retire in 30-40 years is pretty good. Might be better to pay tax on it now and be able to withdraw it tax free in the future. Captain Beans fucked around with this message at 00:58 on Apr 17, 2011 |
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Apr 17, 2011 00:44
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Captain Beans posted:For example is there any specific reason why you are making contributions into a traditional IRA(you mentioned the deduction for it) instead of a Roth IRA(pay the tax now)? If you made enough money to have things like student loan interest phase out your paying taxes at a 25%+ level. Tax rates are actually pretty low historically, so the chance of them being higher when you retire in 30-40 years is pretty good. Might be better to pay tax on it now and be able to withdraw it tax free in the future. Well I didn't contribute to an IRA this year because of the reasons you and I stated. I only wish I had enough foresight to know I wouldn't be able to deduct then I would have maxed out 401k contributions instead. C'est la vie.
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Apr 17, 2011 14:30
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2 1/2 hours before I shut my door, go home, and get drunk. ARRRGHH what a year.
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Apr 18, 2011 22:26
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I have a quick question. I already submitted my 2010 tax return, but someone just mentioned the Making Work Pay Credit and having to fill out Schedule M. I remember taking some kind of similar credit in 2009. Did I just screw myself out of a potential $400 credit? Is there any way that I can rectify this? Or was I ineligible anyway?
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Apr 18, 2011 22:27
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AbbiTheDog posted:2 1/2 hours before I shut my door, go home, and get drunk. ARRRGHH what a year. mazel tov buddy, drinks are on me if you end up in SE PDX somehow 
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Apr 19, 2011 01:50
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Insane Totoro posted:I have a quick question. Depending on your income, you may be eligible for up to $400 credit from this one. Schedule M is how you would calculate the amount you get, which is carried forward to the "payments" section of your 1040 form if I remember correctly. You can always file an amended return to claim any credit you forgot in your original filing. I think you have up to three years to amend a return.
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Apr 19, 2011 04:34
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Insane Totoro posted:I have a quick question. Did you do it pen and paper or did you use software? If you had used software like Turbo Tax, it would be almost impossible to forget to take it. If you used pen and paper, then like werdnam said, a 1040X is in your future. It is not that hard to amend a return.
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Apr 19, 2011 04:47
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Ergh, I used those damned fillable forms for an eFile on the IRS website. 
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Apr 19, 2011 04:50
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I run a small LLC/S-Corp business in which my wife and I are equal "partners" in it. I have been paying myself through payroll so I get the correct taxes taken out etc. but I am not sure if I am doing anything with the business optimally. I have been "operating" since November 2009, and have not filed any type of taxes this year other than my 940/941 forms. I have no clue what type of federal tax to file or how to set it up. I'm fine with having a CPA do it, but the two that I've spoken with really don't care to give me the time of day or offer any actual business advice since I'm small and didn't actually start making any decent money until late this year. What are my options to pay myself? I've seen things like basic salaried payroll (which I do now), owners draw, and other options and have no clue what would be best for my position and business. Any advice or any more information you guys need just let me know.
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Apr 19, 2011 19:48
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Alfalfa posted:I run a small LLC/S-Corp business in which my wife and I are equal "partners" in it. What type of business is it? Do you have employees that you manage? Do you produce goods or services? Does your business make use of any capital assets? I'm assuming you are an S - Corp and not an LLC- they aren't the same.
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Apr 19, 2011 20:43
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entris posted:What type of business is it? Do you have employees that you manage? Do you produce goods or services? Does your business make use of any capital assets? It is a service based business in which I personally train athletes. I currently have two interns who I will hire on as part time employees once I figure out all the tax stuff. As far as capital assets, I'm not quite sure what those are. If those would be things like the equipment, weights, barbells, etc, that I purchased to train my athletes with then yes. Yes S-Corp my bad.
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Apr 20, 2011 18:26
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Alfalfa posted:I run a small LLC/S-Corp business in which my wife and I are equal "partners" in it. You need to be filing Form 1120s (due March 15th every year) for the business. This will "spit out" a form K-1 which will list you and your wife's share of the profit/loss. You're two years late (2009 and 2010), and the IRS levies a per-shareholder, per-month penalty. You can get one year waived if you ask nicely (I'd recommend 2009, as it will be highest) but you're stuck with the 2010 penalty. You pay yourself "market wages" (up for interpretation) on a paystub, and any extra money you take out as a distribution (NOT a dividend). Difference is distributions are not subject to payroll/self-employment taxes (saves around 15%). Edit - Keep trying to find a professional - you need professional help, but try a smaller firm/sole practitioner (or LTC, they do a fine job as well). Or start looking in May/June, as we all could use some summer work.
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Apr 21, 2011 16:22
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Hey look Abbi, Intuit's VP of professional products recorded a nice video to tell us how much they "appreciate" our business. Then they released next year's pricing and are waiting for us to bend over and take it up the shorts like they do every year. REP charges unlicensed individual states are increasing from $18 to $25. I guess they are providing 39% more value somehow? Oh look, it now "includes state efiling". Problem is, I already pay $1K a year for unlimited federal and state efiling so they are just finding creative ways to gently caress me out of more money. I guess now I only pay $1K for unlimited federal efiling now? REP for business entities is increasing from $54 to $60. Oh an apparently we now get to pay $500 for DMS, analyzer and tax planner. Yeah I used to just pay $150 each for DMS and tax planner and have absolutely no use for their worthless analyzer, but that's cool I guess. Just loving rape me for another $200 with no justification. I loving hate Lacerte so drat much every time I have to pay them. I mostly love the program when I am using it, so I wish there was a good alternative.
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Apr 21, 2011 22:12
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furushotakeru posted:Hey look Abbi, Intuit's VP of professional products recorded a nice video to tell us how much they "appreciate" our business. Then they released next year's pricing and are waiting for us to bend over and take it up the shorts like they do every year. I paid a grand total of $20k last year for it....grrrr......
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Apr 21, 2011 22:31
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AbbiTheDog posted:I paid a grand total of $20k last year for it....grrrr...... But hey it's cool man... they "appreciate our business", right? I paid about $8K for 2010 between the software + REP, but I prepare about half as many returns as your office does. I'm guessing you do a lot more business returns than me.
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Apr 21, 2011 22:57
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Doing the math, it will cost me 15.34% more to do the same exact number and type of returns I did for 2010 in 2011. I somehow doubt my clients wouldn't bitch at me for raising my rates by 15% next year meaning I will be expected to eat the difference. This is loving outrageous. edit: oh and their pricing sheet still has the balls to say that individual modules come with unlimited individual federal and state efiling, and then still jack up the price of the state REP fees but say that "efiling is included" furushotakeru fucked around with this message at 23:56 on Apr 21, 2011 |
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Apr 21, 2011 23:51
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So, how about them taxes? [/derail]
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Apr 22, 2011 00:03
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furushotakeru posted:But hey it's cool man... they "appreciate our business", right? They don't appreciate it enough to actually hire enough people to staff the phones for you guys during tax season either. I don't work there anymore, got way too fed up with management's terrible decision making. Zquargon fucked around with this message at 00:30 on Apr 22, 2011 |
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Apr 22, 2011 00:24
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Zquargon posted:They don't appreciate it enough to actually hire enough people to staff the phones for you guys during tax season either. I don't work there anymore, got way too fed up with management's terrible decision making. Hold time has never been an issue for me, fortunately. I rarely have to call in and when I do I never hold for more than a few minutes that I can remember.
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Apr 22, 2011 00:35
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You were lucky then. Hold times for most days were in excess of 30 min all day.
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Apr 22, 2011 00:37
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AbbiTheDog posted:I paid a grand total of $20k last year for it....grrrr...... Are you actually paying more than you would for CCH Prosystems? I sure hope it's worth it. I'm not surprised, really. Intuit has been raising prices substantially in the past few years. The only price program they haven't restructured lately is that on the QuickBooks program proper (they hosed with payroll subscription a year or two back). The only consolation is knowing that Intuit will decide to shoot themselves in the head again and that maybe, just maybe, good alternatives will become popular.
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Apr 22, 2011 04:31
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Missing Donut posted:Are you actually paying more than you would for CCH Prosystems? I sure hope it's worth it. Learning curve is my issue. I have 4-5 staff who have been using it for years, we're paperless with the DMS program, yadda yadda yadda. And they know it. Ever since they were bought by intuit the drat program suffers from feature creep and bloat. I DON'T WANT TO INSTALL THE TEN OTHER THINGS YOU'RE TRYING TO SELL ME.
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Apr 22, 2011 16:54
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So, my study buddy and I were reviewing "advanced" partnership tax topics for our exam in two weeks. We both noted that all of our instructional materials use examples that are basically pulled from the regs, and we both thought it would be cool if there were other problems, with answers, that we could study from. As tax CPA people, what do your instructional materials look like? Do you get lots of practice problems illustrating various tax principles, or what?
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Apr 22, 2011 16:58
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AbbiTheDog posted:Learning curve is my issue. I have 4-5 staff who have been using it for years, we're paperless with the DMS program, yadda yadda yadda. Well that and the fact that it seems to crash several times a day. It does that more each year.
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Apr 22, 2011 17:05
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