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Posts by casualorca5

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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
sonica;53704300 said:Hi, does this count as a business expense? I don't think so, but maybe I should double-check?[/QUO

Self-employment income tax prepayments: non-deductible
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
Olivia Cruz86 said:So, I’ve got this situation where I have an outgoing invoice from December 2014, but only a chunk of it actually got paid. Then, the rest of the balance didn't hit until January 2015... Now I'm stuck trying to figure out how to close this account out properly—like, where am I even supposed to log this? If I try to dump the remaining balance into the 2014 IRA, it completely vanishes from my January 2015 KPI, which makes zero sense.

Maybe just re-enter the full invoice into the IRA for 2015.
You could just record the portion paid in 2015... or even the part from 2014, though that might end up being nowhere.
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
shadowdrifter99 said:Hey everyone, look, I deal with this mountain of tiny little expenses all year—utility bills, random office supplies, stuff like that. I don't bother putting these through my KUI to claim the input tax because honestly, it's just not worth the headache. Instead, I just dump them straight into the KPI. My question is, since I’m not using the input tax in the KUI, am I allowed to book the full amount including the sales tax, or am I stuck booking it without the tax? Hope that makes sense... :-)

Well, you can just book it directly to the KPI as a gross amount, using both the first and last columns for expenses in the KPI.
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
shadowdrifter99 said:Hey everyone, look, I deal with this mountain of tiny little expenses all year—utility bills, random office supplies, stuff like that. I don't bother putting these through my KUI to claim the input tax because honestly, it's just not worth the headache. Instead, I just dump them straight into the KPI. My question is, since I’m not using the input tax in the KUI, am I allowed to book the full amount including the sales tax, or am I stuck booking it without the tax? Hope that makes sense... :-)

Maybe just run them through the IRS, that way you actually get to use the input tax—assuming the invoice has everything required. It might be a bit slower, I guess.🙄
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
David Green642 said:Wait, isn't the bank balance supposed to stay unrecorded? Doesn't it just become income through outgoing accounts—basically, cash flow through the IRU that gets logged for VAT purposes?

For sole proprietors, I don't record the deposit to the checking account. I just record it as an IRA, cash payment, which then automatically flows into the KPI.
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
Brian Brown31 said:Hey everyone! Could someone give me a quick "Accounting 101" refresher? If I take some cash from the register and deposit it into the business checking account—specifically when filling out a deposit slip—should I record that as a cash receipt or a bank deposit?
Thanks!

It's a cash receipt. At a place like Silicon Valley, you'd probably just handle that through the IRA under the cash option.
Just be careful; don't log it in both the ledger and the IRA, or you'll end up double-counting your income.👍
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
Olivia Cruz86 said:So, if I've got this right, I just book the RN normally under the IRA,
then I list the late interest fees under "Other Income" tied to that specific account, and that should show up in the KPI. Which means the interest amount won't mess with the sales tax form. Do I need to flag anything else regarding interest—like in the year-end statements—or am I good to go??

thanks Henry

If you issued the invoice this year, just go into the sales module, enter the payment date and the amount: it automatically pulls everything through to the IRA and the KPI.

For interest, you enter it in the business receipts module; it isn't subject to sales tax, nor does it affect the tax calculations.
/ similar to how people record bank interest /

That's basically it. Data from the IRA flows directly into the tax return.
If the IRS asks for clarification regarding interest or perhaps a loan, you'd just provide them with an Excel spreadsheet. That should suffice.
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
cosmictinker24 said:Hey there. Quick question regarding shipping costs when invoicing a client overseas—do I need to charge sales tax on the postage itself, or is that exempt?
thanks for the help!

I guess it’s a yes; actually, that was the rule before we joined the USA, and it probably hasn't changed.
The shipping cost could be bundled into the total service fee, like an attorney's fees for
a specific case, where the invoice shows one line item with a flat 8% sales tax on everything.
Or you could list the shipping separately, which would also carry that 8% sales tax.
Maybe it's better to just keep things simple.
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How to sign up for Medicare in Business, Accounting & Taxes ·
Arthur Bishop6 said:Can someone please help me out here? I was reading some stuff about this, but I’m totally lost. I use the Silicon Valley pension portal for my clients, and that part works perfectly fine.
I haven't signed up for the online Medicare portal because it wasn't mandatory, so I didn't bother pushing for it.
Now, a client just told me that after I offboarded an employee through the Silicon Valley system and manually filled out his Medicare termination forms, they rejected them. Apparently, the paperwork is useless because the termination was already processed automatically once I updated the Social Security Administration records.
The problem is, now I have zero documentation proving the offboarding happened. I'm not even registered on the online Medicare portal.
So, here's my question: since I'm already set up with the Silicon Valley portal, am I actually forced to register for the online Medicare system too?
And how on earth do I get copies of these automatic registration and termination documents?

Thanks for any help.
☕

At Medicare, you just get some ridiculous printout, almost like a screenshot.
That’s what one of our employees got, and it didn't cause any further issues.
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How to sign up for Medicare in Business, Accounting & Taxes ·
David Green642 said:I processed an employee's termination through the Social Security Administration yesterday, and it went through successfully.

Do I just sit tight now and wait for Medicare to process everything via email?

It should arrive eventually.
We once had a situation where the employer was registered in Silicon Valley but not in
Medicare.
We ended up filing a paper form and taking it directly to Medicare; the employee was already
deregistered, even though we hadn't received an email.
I suppose the Medicare online system has been buggy since its inception; the software is a joke.
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Accounting for Sole Proprietors: Tax & Bookkeeping Tips in Business, Accounting & Taxes ·
Nicole Lee6 said:I’ve been recording my computer expenses under the general supply column, but then a colleague mentioned she tracks them under the miscellaneous overhead section instead. Now I’m sitting here wondering which way is actually the right way to handle this. 🤷 🤔

I suspect the in-kind entry is the right way to go. It seems like ZARA might just be a holdover from back when everything was handled via those old ZAP compensation vouchers.
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How to sign up for Medicare in Business, Accounting & Taxes ·
Ethan Mitchell4 said:I’m honestly just wondering what happens now that everything—every single registration and cancellation—is being handled online. What becomes of all those workers who used to sit behind the counters at Social Security and Medicare & Medicaid Services?

Are we just going to keep paying them to sit there and count the days, just like before? While we end up doing their jobs for them?

It's likely the same thing that happened to the IRS and Customs agents...☕
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Doing business with USA member states in Business, Accounting & Taxes ·
Nicole Lee6 said:I really need some help here! 🙂 Ever since all these new regulations kicked in, I've been focusing exclusively on service-based work, and now I've suddenly found myself in a spot where I have no clue what the actual procedure is or what specific pitfalls to watch out for 😬

So, here’s the situation: A sole proprietor is buying a used truck (an off-road vehicle) from a seller in a neighboring state—I think the seller is also a small business owner, maybe an LLC or something similar 🤔. We've agreed on a price of 7,000 USD.

What exactly do I need to be careful about? What specific details are required on the invoice? Are there certain legal notations that absolutely have to be included? If I provide my tax ID, will they issue the invoice without sales tax, or how does that process work? Also, how should this be recorded in the accounting software?

Back when we bought a truck from Germany in 2011, there were no customs issues because it was an EU-manufactured commercial vehicle coming from within the EU, so I assume it’ll be just as smooth this time around... 🤷 There won't be any transport costs either, since the owner is just going to drive the truck back to the US himself...

Do I actually need to apply for an EORI number before the purchase is finalized?

And one more thing: do I still need to log this truck purchase in the supervisory ledger, or is that outdated requirement?

An EORI number is for countries outside the European Union. Within the EU, the VAT Nr is what matters; just check if you are listed in VIES.
You don't need the supervisory ledger for this.
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IRS and Tax Filing Issues in Business, Accounting & Taxes ·
Jack Young said:I sent my info over yesterday and everything went through smooth as silk. Not sure why you're hitting a wall🤷....it might just be a glitch with your computer or something, causing the block.

Or maybe an outdated Java version? What error message are you getting?
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Doing business with USA member states in Business, Accounting & Taxes ·
Douglas Nguyen30 said:I gave it a shot, but it ended up pulling me under too.
Total taxable transactions.
Calculating the IRS tax code requirements during importation.

So, we're really looking at a zero here?

Wait, how can that be zero if the sales tax has already been paid?
There has to be another way. 🤷

I also had sales tax paid on imports back in July. If it pulls into my import liability, I'll just delete the entry.
Under Section 76, Subsection 8 of the tax code, there is an option to report import tax solely for accounting purposes. A specific ruling will be issued regarding this method. It should be detailed in the upcoming IRS tax code updates. 😁
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Doing business with USA member states in Business, Accounting & Taxes ·
I guess maybe I should mention what ruggedmaker2 said.
Douglas Nguyen30 said:Hi everyone! I have a quick question regarding the new IRS tax code forms...
Back at the end of June, we had some imports coming in from the US. The VAT on those imports was due and paid right at the start of July. Now, here's my dilemma: which column should I be using for that import tax? Maybe this one:
III. 6 - input tax on imports ???? 🙂
Thanks in advance!

Yes, column III.6 covers the input tax on imports. I guess it will all be settled in the July 2013 IRS tax code calculation.🙂
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Doing business with USA member states in Business, Accounting & Taxes ·
I need some help here. A sole proprietorship is acquiring goods from the USA in July, while simultaneously receiving the invoice. The VAT liability arises in July. Since the invoice hasn't been paid yet, is there still a right to claim input tax?
According to Article 133 of the regulations, it seems they do, as there's no mention of a requirement to have actually paid the bill. 🙂
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Doing business with USA member states in Business, Accounting & Taxes ·
Nathan Doyle2 said:Hi everyone! Has anyone handled exports to Canada since July 1st? I'm specifically looking at the invoicing side of things—we finally got a VAT ID that needs to be on there. Other than that, is there anything else I should be adding, removing, or tweaking to stay compliant?

It’s VAT-exempt under Section 45 of the Law,

Regarding Section 81—amounts should be in USD,
Section 79 covers mandatory invoice details.
Is EUR1 still valid for Canada? Probably not the old one/US-CEFTA/
As for declarations—it might be best to check with your customs broker; I assume things have settled by now.
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Doing business with USA member states in Business, Accounting & Taxes ·
Benjamin Palmer80 said:Do we actually need that statement if we're just using LTL shipping? Who even signs off on it—is it the driver who picks up the goods but doesn't deliver them directly to the customer, just heading straight to New York City... or should I just sign a general agreement with my carrier?🙂
I have one question because nothing else seems to make sense here: If my customer from another FBI district organizes the LTL shipment themselves, does that mean I don't have to deal with sales tax since I won't be receiving an invoice for the freight? Could someone please confirm this for me?

As far as transportation goes, you're out of luck; you don't even get a receipt.
I guess you're only listing the goods delivered to the FBI on line I 2 of the sales tax form. Maybe.
Of course. Plus the ZP form.
Regarding the statement and the bulk transport—I guess it's all a bit vague to me too.
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Doing business with USA member states in Business, Accounting & Taxes ·
Richard Howard55 said:The statement is mandatory. The Regulations (Section 170) basically just piggyback right onto Section 41 of the Tax Code. 🙂

Does anyone happen to know what this famous statement from Article 170 of the Regulations is actually supposed to look like? 😕
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