Posts by casualorca5

Keith Martinez5 said:Back in May, I picked up a piece of equipment that’s going straight into my depreciation schedule. Now, I'm trying to figure out how to properly log this on my sales tax return. In my accounting software, I entered the amount under Section 22 so that I could claim the input tax credit, but looking at the actual form, there's a specific line under "Other Data" labeled "purchase of other long-term assets." Since my software isn't automatically pulling that data through—it's one of those things where you just have to enter everything manually—I wanted to double-check something. Should the amount I enter there be the gross total including tax, or just the net amount before tax?
Thanks!

Pre-tax, I guess.👍

Laura Castillo6 said:So, does this mean I actually have to deal with paying sales tax under the current tax law?

If I’m reading the situation right, there’s a certain group of employers here in the States who just don't bother paying it during acquisitions, yet the IRS doesn't seem to go after them at all.

The inspectors have no reason to penalize them; they're part of the sales tax system and operate within the law.
Accountants handle the details—tax equals input credit upon acquisition from the USA.
There isn't any cash bleeding out of the company.☕

Peter Young5 said:casualorca5 :

I've got my personal car listed under my small business expenses. How does the depreciation math actually work here, and what’s the maximum percentage I can legally claim if I don't keep strict logs—like actual mileage or trip receipts? Right now, I'm just recording it as a 70/30 split between business and personal use... :S

70/30... well, it's the same deal with depreciation; that other 30% isn't tax-deductible.

Peter Young5 said:If I’m not using an OA for business purposes, does the vehicle expense split 70/30, or is the entire cost considered non-deductible?

Fringe benefits

Jason Walker said:Just a quick question for information—let's say, importing cosmetics.

If I were to import "Product X" cosmetics from the European Union and sell them here via a webshop as an LLC, how does the taxation work? The product has all its labels and meets all safety regulations for sale within the European Union.

For instance: Product X costs 18 Euro at wholesale within another EU member state, and shipping to the US is 2 Euro. That brings the total to 20 Euro.

That same product sells in the US for 42 Euro. If I sold it for 35 Euro, would my costs be the 20 Euro paid to the supplier plus 25% sales tax on the 35 Euro retail price? That would be 28.75 Euro, meaning the potential profit for the company would be 6.25 Euro per unit?

Cost basis: 20 Euro
RUC : 8 Euro
Sales Tax, 25% : 7 Euro
====================
Retail Price : 35 Euro

Maybe analyze the overhead, the market, initial capital, risks... more thoroughly.
Good luck.👍

Nicole Lee6 said:Is it actually permissible to apply the 70/30 rule to the registration costs of a personal vehicle when filing business expenses? This specific car is listed on my asset register, yet it isn't used for my primary registered activities. Furthermore, I don't maintain a mileage log that would indisputably prove the entire mileage of the vehicle is strictly for business purposes. Or should I just leave it out of my KPI entirely?

And what happens to the owner's draw if it isn't being used for business?
So it's being used personally?
That implies it's effectively a fringe benefit...
It's hard to give a straight answer here.☕

Nancy Mitchell91 said:I really need some help here!
I’m running my own solo practice as an attorney, and I’ve officially listed my personal car as a business asset. Since I'm the only employee, do I still need to keep a detailed mileage log for everything?
Thanks so much in advance!

Yes, every single mile driven for business purposes ☕
Unless there is some kind of fringe benefit salary involved.

Tyler Jackson8 said:So, I’ve got a bit of a head-scratcher here—quick question for the pros... I run a seasonal business, and now that I'm in my retirement years, I'm doing some renovations on my commercial space. Specifically, we're laying down brand new tile. I've got one invoice for the tiles going to $833 and another one hitting $400. The big question is: how should I be booking this in the books? Should I be capitalizing this as a long-term asset, or can I just write the whole thing off as an immediate expense right now?

I guess I would just write it off immediately.🙄

Ethan Bailey18 said:It’s the same deal as any other foreign country.
You need a VAT number to transfer tax liability, but in this case, there isn't one. If you don't have a number on the invoice, you just cite the standard export regulation like you would for any other shipment.

Thanks,

it still seems somewhat odd to me that they lack any sort of "ID number," or whatever the sales department calls it.🤔

Tyler Cooper8 said:I’m looking for some guidance from those of you who have been around the block a bit longer... I’ve noticed a small amount of passive interest hitting my checking account every three months (basically just revenue appearing on the account since the balance is in the black)
How exactly should this be recorded in the KPI, and does it need to show up on the sales tax return? Thanks!

We had some pretty intense debates about this before submitting the CDC reports.
The laws are vague, leaving too much room for interpretation.👎
It made us quite irritable, so I eventually just decided to list it under miscellaneous receipts.😁
It’s hardly worth a deep dive.😵

Exporting to Japan,
does anyone know?
I guess Japanese companies don't have tax IDs????

Peter King9 said:Thanks, ruggedmaker2. The real headache is that I actually recorded those 6 dollars back in 2013 and filed it under my sales tax returns. They’re only just now getting around to fixing it. Back then, they sent over some kind of proforma invoice to correct the previous bill for those 6 dollars, but I completely missed the mark and just processed it as if it were a standard invoice...
If I try to reverse that 2013 entry and re-record everything in 2016, my balance will sit at exactly 0.00. There won't be anything for me to report on the sales tax filings, but once they process their side, a discrepancy is going to pop up out of nowhere. It’s just a complete mess...

Don't worry, it isn't a significant amount. If Customs calls you, you can just explain it.👍

[QUOTE=Charles Turner13;57787015][QUOTE=Olivia Cruz86;57786705]I don't have that module...?[/QUOTE

I handle my sales invoices to the EU using the VAT-Ir module.
As long as you enter the basis of liberation and the correct VAT ID, you just go to the aggregate return and you're done.[/QUOTO

The real issue is how to actually draft the invoice.
If you lack that specific module, I guess Microsoft Office is your only option.👍[/QUOTE][/QUOTE]

Olivia Cruz86 said:Ugh, I am begging you guys, please help me out here!

So, we’re about to bill a company over in Romania for some B2B services, and since we’ve never actually dealt with international clients before, I’m low-key freaking out. I have zero clue what the invoice is supposed to look like, how I’m supposed to log this in our IRA (Synopsys) system, or where this even lands on the VAT forms. If anyone knows the drill, please, please walk me through this—I am terrified of absolutely screwing this up and dealing with the IRS or tax authorities later.

Thanks a million

Use the International Trade module in Synopsys.
Go to the ES invoice, select VAT exemption: reverse charge, transfer of tax liability based on section...

You must include the VAT ID for both the buyer and the seller. The software handles the entry in the IRA and
pulls it into the VAT form. Check everything just in case.🙄
Verify the customer's VAT ID via the VAT Information Exchange System. 👍

graniterider10 said:I'm filing my taxes as a sole proprietor. I just got notification today that some interest from my savings account was paid out. Should I be including that interest income on this tax return?

No, just the business income and W-2 wages, I guess.👍>

Advance payments for dividends are recognized within the period from February 1, 2015, to February 4, 2016.

Does this also apply to sole proprietors when filing with the HHS?
I have received several conflicting answers.🤔
If anyone happens to know, thanks in advance.👍

Keith Martinez5 said:The same thing happened to me! One of my items had a book value lower than what that 10% calculation should have been. I submitted it anyway, and it actually went through, but looking at my confirmation receipt, that same error message is still sitting there... We might eventually have to file a formal explanation with the local IRS office.

From the PD with seminar, "there are plenty of poorly configured audits on the IRS electronic forms "😵"
For instance, when the book value is low and the write-off rate is 40%, it won't accept the 2.5-year period...😵
It would probably be best to just attach an explanatory statement to the tax form.

cosmictinker24 said:My employer (they're a freelance consultant) just got hit with a Statement of Interest Paid from their bank... regarding some interest earned on a savings account they opened back in 2015.
Should this be reported on the annual tax return under 4.4. CAPITAL INCOME, specifically section 4.4.2. INTEREST DATA—meaning both the income itself and the withheld federal tax based on that statement???

Thanks

I guess maybe a tradesman is only required to report income from self-employment and non-employment earnings if those were actually earned during the tax year.☕
So, you might as well just forget about the bank and those verification letters.👍

ruggedlynx63 said:They aren't coming, they just aren't... ugh...😵
Does anyone actually have a solid conclusion regarding passive interest for 2015? Like, does it even count as income back then or what? I’m honestly just completely lost at this point 😢
It’s like they wrote the laws just to make us suffer... 🙂

I listed them as income. Those $10-$6.75 won't make much of a difference anyway. The IRS implies they count, though standard accounting practices don't explicitly list them as non-reportable income. ☕ For me, the matter is closed; I am not revisiting this.😁

casualorca5 said:Interest on checking or savings accounts isn't treated as income. One would just explain that to the IRS in an attachment to the DOH.😁

My mistake, I haven't actually read the new law yet. I suppose I should go look at it.
👎