Posts by casualorca5

Olivia Cruz86 said:So, what’s the bottom line here? What are we actually looking at?
Are those passive interest payments getting rolled into income for 2015?

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.😁

stormybadger8 said:So, basically, we need to file the tax return by February 29, 2016, and pay off any remaining 2015 tax and surcharge balance once that's done...
But does that mean we also have to pay double monthly advances based on that return by Feb 29, 2016? Or should the advances for January and February still follow the old rules? 🤷

Also, is it 100% certain that no special forms are being sent for those advances? 🤷

Through February 29, 2016, prepayments follow the old Police Department rules.
Starting March 1, 2016, everything follows the 2015 filing through February 28, 2016.👍

Nancy Jones said:I think I misquoted things earlier; I was actually thinking about this response from casualorca5
Oops
The 70:30 split rule applies when the vehicle is used strictly for business and stays with the company after hours, right? Commuting to and from work doesn't count toward that at all—that would just be considered taxable fringe benefits. So, to answer the question: no, that's not quite right.

Thanks!
I had assumed those non-deductible 30% were meant to cover the private commuting portion.
If that's the case, since my car is already fully depreciated, could I as a Small Business owner just file a formal waiver to exclude the vehicle from my business expenses entirely? And if so, what's the best way to handle that through my Small Business?

I'm not sure what you mean by an exemption. A company car can be used for personal trips, but then it's treated as taxable fringe benefits. Or, you could just sell it, which removes it from the asset list...

nimblepuma10 said:Thanks, I appreciate it. 🙂

I actually just got my paperwork back from the IRS this morning, and they’ve laid out my tax base along with what I’ll owe each month. I was wondering, though, if I'm supposed to calculate all the other payroll taxes myself based on those figures, or if some other agency handles sending those amounts over automatically?

That notice is just for estimated income tax payments; you should have already received the paperwork for the other contributions a while ago. 👍

Nancy Jones said:Hi there, I have a small business owner who commutes using their personal vehicle, which is registered under the company. They’re currently splitting expenses at a 70:30 ratio and keeping a log of all those short trips for local travel.
Is it actually okay to include the mileage for the daily commute to and from work in that logbook?

Oops👎
The 70:30 split usually applies when the vehicle is strictly for business and stays at the office overnight. Commuting from home to work isn't business travel. That would just be considered taxable fringe benefits. As for the question: no, that wouldn't be correct.

amberbadger17 said:So, I’m wrestling with this sales tax order—specifically the one labeled 68 1708-oib—and the system just flat-out refuses to process it. It keeps rejecting the whole thing. Has anyone else run into this lately, or did they change some random rule behind my back without telling me? Thanks.

As far as I know, nothing has changed. It should work.

Maybe this isn't quite relevant here, but
an employee had their Medicare stolen, according to CNN, so they went to the local agency,
only to be told it’s handled through the employer via some email process.
My understanding was that you deal with Medicare directly by bringing in a specific form,
and then they fill it out. Does anyone have any recent experience dealing with this? 😵

vividotter912 said:Hello everyone,
it seems everyone here has experience dealing with the EC, unlike myself.🐔
My question is this:
a small business, a tax-registered entity in the US, performs construction services in Canada (installing a roof using their materials)
When I invoice the Canadian clients, does the reverse charge apply if they are registered taxpayers?
What if the client is an individual?
And how should the invoice look if I provide construction materials purchased here and installed in Canada?
Regards

At the seminar, there was a question about "a contractor performing work on property in Italy."
The answer: in the US, you just report the receipts in the KPI, nothing in the VAT or ZP forms.
In Italy? Well, one would have to study Italian laws and follow them accordingly.

As for the construction material? I suppose I would treat that as a standard delivery of goods within the EU. So, it goes into the VAT and ZP forms.👍

vividotter912 said:Hello everyone,
it seems everyone here has experience dealing with the EC, unlike myself.🐔
My question is this:
a small business, a tax-registered entity in the US, performs construction services in Canada (installing a roof using their materials)
When I invoice the Canadian clients, does the reverse charge apply if they are registered taxpayers?
What if the client is an individual?
And how should the invoice look if I provide construction materials purchased here and installed in Canada?
Regards

I think I have that somewhere in my notes, I'll let you know.👍

I guess I'll just leave this here. Maybe someone will find it useful. says:
I honestly hope this means those of us running our own operations don't need to rush into getting a license. If we actually have to, I guess there might be a deadline for when that needs to be sorted out.

Thanks.

The specifics regarding how, where, and at what cost the license will be issued are subject to a separate federal regulation.🙄
The same applies to the unified account plan; nothing concrete has been decided yet, I guess.
Maybe the rollout will be delayed. I guess. ☕

cosmictinker24;55518012 said:

Carol Price4 said:Thanks, casualorca5..
But I'm really struggling with the interest part—specifically, what we collect from customers.
So, I book the invoice normally in the IRA, but I put the interest under Inflows, without sales tax, using the type "extraordinary income"... the interest amount shows up in KPMG, but I don't include it in the sales tax forms. So, it doesn't go into the sales tax summary either..
What I'm wondering about is the end of the year—when looking at the annual Recapitulation of inflows and outflows, those interest payments show up in the Inflows section via the bank statements..
Should those interest amounts be specified somewhere else so the IRS knows they're actually interest?? Like, do I need to write an explanation stating that the discrepancy in the bank statement inflows refers to interest, or how does that work??..
Usually, we receive payments on behalf of clients, and we specify those separately for the FBI (listing which clients they are and when the disbursement happened) to show those aren't our income since we're just passing them back to the clients...
Now I've just got this whole dilemma regarding these collected interest amounts to solve..
Thanks!

Unless you're actually paying that interest out to clients—if you're just holding funds in your account to pass them along, then yeah, those should be included in the list of transit items you hand over to the Police Department.
Unless you're actually paying that interest out to clients—if you're just holding funds in your account to pass them along, then yeah, those should be included in the list of transit items you hand over to the Police Department.
if a specific issue actually pops up, let me know 👍

dustyscout8 said:Does anyone have clarity on this? Back in September 2015, an issue of Accounting and Taxes noted that licensed accountants were being introduced. It stated that under the new Accounting Act, if a business owner outsources their accounting tasks to other legal entities or individuals, those parties must hold a specific license to perform such duties. This mandate was set to take effect on January 1, 2018.

Does anyone actually grasp the implications here? Is the requirement essentially saying that every single bookkeeper is now forced to be licensed, or what exactly is the catch?

Not in-house accountants.😁

cosmictinker24;55506016 said:

casualorca5 said:

I will attempt to summarize, and please correct me if I am wrong:
Income:
late fees collected from customers, recorded in KPMG, excluding sales tax
interest on checking/savings accounts paid by the bank, not in KPMG, noted in explanations
taxed at year-end

Expenses:
late fees paid to the FBI, not in KPMG
late fees paid to vendors, recorded in KPMG, no sales tax deduction
business loan interest, recorded in KPMG,
🤔
I will attempt to summarize, and please correct me if I am wrong:
Income:
late fees collected from customers, recorded in KPMG, excluding sales tax
interest on checking/savings accounts paid by the bank, not in KPMG, noted in explanations
taxed at year-end

Expenses:
late fees paid to the FBI, not in KPMG
late fees paid to vendors, recorded in KPMG, no sales tax deduction
business loan interest, recorded in KPMG,
🤔
Interest collected from customers goes only in the KPI; no explanation to the IRS is required, as they are shown as Revenue./👍

cosmictinker24;55495177 said:

Ryan Rogers4 said:In that explanation to the IRS, you basically list everything that isn't in the KPMG report but did land in your bank account. That way, you prove why the bank statements don't match the revenue in the KPMG files—basically showing why certain deposits aren't reflected in the official books.

I will attempt to summarize, and please correct me if I am wrong:
Income:
late fees collected from customers, recorded in KPMG, excluding sales tax
interest on checking/savings accounts paid by the bank, not in KPMG, noted in explanations
taxed at year-end

Expenses:
late fees paid to the FBI, not in KPMG
late fees paid to vendors, recorded in KPMG, no sales tax deduction
business loan interest, recorded in KPMG,
🤔

Brandon Jackson4 said:Hoping for a quick response here.
I run my own business and I'm registered for sales tax.

When I get invoices without any sales tax—like a bank fee, for example—do those still go into the purchase ledger, or do I only record invoices that actually include sales tax?

Or take postage costs, for instance... there's no sales tax on those.

Really hoping to hear back soon. Thanks.

I just record everything directly from my bank statements to my expenses.
Most bank fees end up lost or thrown in the trash anyway.😁

Robin Cook4 said:So, the invoice was paid based on the deposit today. Can I go ahead and claim that sales tax deduction against the down payment receipt on the actual day it cleared?

Yes, though you would need an advance invoice dated back in August 2015.😛
Maybe you'll just receive the goods and a standard invoice instead.👍

Aaron Young85 said:Hey, I could really use some help here,

Is shipping goods over to Norway actually exempt from VAT?
Like, where am I supposed to log that on the tax return—under export deliveries or somewhere else?

Thanks

Under section 1.9 regarding exports—Norway isn't part of the USA🙄/

It's tax-exempt per Article 45...☕

cosmictinker24 said:Yeah, exactly. My scenario is an 8-hour workday with 12 hours of rest... plus weekends off, so the weekly rest hits 64 hours. What I'm really wondering about is the monthly tally. If I sum up the work hours and get, say, 184, do I also have to add up all those daily and weekly rest periods into the grand total? Or is that just for documentation purposes, while the actual totals for payroll only include worked hours, vacation, and sick leave, just like it's always been??

It stays the same as before, I suppose. Daily rest periods probably just exist to prove an employee gets their minimum 12 hours of downtime and weekly break. I don't see any other purpose for them, other than making things more complicated.

Keith Martinez5 said:I’ve been scrolling through all your posts, and honestly, I’m having a bit of a crisis regarding how to track work hours... I’ve been using this little Excel template for a while now, but after reading everyone's experiences here, I’m starting to second-guess if it’s actually doing the job properly. To make matters worse, I tried downloading what looked like a "superior" new template online yesterday, only to end up accidentally installing a Trojan virus on my computer—so that was a fun little disaster! Anyway, I have three employees, and they typically take their lunch break from 12:00 to 1:00 PM—how does one accurately log that kind of thing? Does anyone happen to have a solid spreadsheet or a system they could share with someone who's currently flying blind? I would be so incredibly grateful for any tips or resources you might have! 🙂

We don't track breaks separately; they just count toward total hours. For instance, if someone starts at 7:00 AM and finishes at 3:00 PM, that's a standard 8-hour workday. I saw an example in a business journal once where they listed 8 hours of work and 12 hours of daily rest combined??
It might be easier since employers aren't required to maintain records for things that didn't occur during the month. I suppose I'll just simplify my spreadsheets by
removing all the columns that won't actually be used.

Nicole Lee6 said:I could really use a little guidance here—is my understanding of the following correct?
1. If I buy a personal vehicle from an individual (we have a bill of sale, and the 5% sales tax was already settled), does a 25% sales tax apply when I eventually sell it?
2. If I purchase a personal vehicle from a corporation (I have an invoice showing sales tax that was claimed as an input credit because the car was used for a rental business), does a 25% sales tax apply upon resale?
3. If I buy a personal vehicle from a corporation (there's an invoice showing sales tax, but instead of claiming the full credit, it was treated as a business expense with a 70% deduction), then during the sale, no 25% sales tax should be applied, citing Section 40, Paragraph 2 of the Tax Code. (Quick side question: which specific box in the QuickBooks ledger or the later tax filing is this reported in, or is it omitted from the tax return entirely?)

Do you happen to know how to invoice a vehicle purchased back in 2010 from a corporation? The tax credit was at 70%, and the remaining 30% went to Class 0.
Maybe a 25% sales tax is required.😁