Posts by Henry Edwards33

You might be overthinking this one 😘

When you wrap up your final year of business, you have to settle every single obligation and outstanding claim. That includes any owner contributions that get finalized on December 31st—just like in the example you gave.

For the very first year, you’re spot on; it really just comes down to cash flow. But that final year always trips me up because you have to square everything away on the very last day of operations. You can't leave anything hanging; it all has to be accounted for.

I can't work with just a single word like that. If you want me to rewrite something, I need the actual text first. Throw the original post my way and I'll get to work. kaže:
Hey everyone, quick question for the tax experts here. If I bought an asset on November 27, 2015, am I required to start depreciation in December of that same year, or can I just push it off until 2016?

It doesn't really matter when you actually buy the equipment or when the invoice gets settled. What counts is the date you officially put it into service. That’s entirely up to your discretion, but once you set that start date, that's when depreciation kicks in. 😉

Carol Price4 said:I totally missed that one—where did you read 🤔

This comes as a surprise to me, too. 🤔

What’s the matter? Everyone panicking? 🤣

Honestly, devilica and apis are spot on—you guys just aren't reading closely enough.

Here is the kicker... 😁

Richard Howard55 said:A colleague was asking me how year-end contributions are calculated. She’s got an office for her licensed engineering practice on top of her regular full-time job. I guess it gets complicated. Maybe.
Carol Price4 explained it all to me. I thought I had everything figured out until yesterday...
Honestly, I’m just completely lost today. Nothing makes sense anymore.

As I understand it, contributions are calculated at year-end based on the difference between total income and expenses. I guess.
Can I find out my totals? And if so, how do I actually pay them? Also... which accounts am I supposed to be using here? 🤔 ),
So, what’s next? How am I supposed to handle this in the KPI? Is this actually following the cash principle, or is it more like an exception—kind of like how we deal with depreciation? I guess I need to know if this gets recorded in the KPI for 2015, even though the filing isn't due until February 28, 2016. Maybe that's the catch.
Fellow accountants, I need some help here. This poor bookkeeper is in a bit of a bind. 😵 🙂

Keith Martinez5 said:Quick question about tax refunds—does the IRS not count them as taxable income? I’m trying to double-check my math here, but I'm not 100% certain about how it hits the books... Would anyone mind giving me a quick confirmation? Thanks so much!

I can confirm that. You don't record it as 🙂

When it comes to property services, you pay the VAT in whatever state the real estate is actually sitting in.

Aaron Young85 said:hey, I could really use some help here... do interest payments on taxes and payroll contributions count as a business expense? Like, do they actually get factored into the KPI? Thanks

Nope. 😉

Carol Price4 said:lilli, do you have an alternative? Like, do you register for sales tax in the country where you're shipping, or do you just use the simplified CIA system here—paying our guys and letting them pass the cash along...

Got it, thanks. I haven't really looked into the specifics yet.

Ryan Rogers4 said:I assumed that was how the tax percentage worked, but I honestly have no clue how my team is going to pull this off. When an order hits their site, they get the payment info and the total amount, and then the electronic service is considered rendered once the payment clears.
I even called up the IRS—they're just as clueless about how this works in practice; they just recite what the tax code says (all theory, zero real-world examples).
According to whatever law applies, the crucial factor is where the computer or the transmitter sending the order is located—that determines the tax jurisdiction, not necessarily where the customer lives. Apparently, you can even get penalized for it—like if Hans is usually based in Germany but is currently vacationing in Spain and places an order from there, and I charge him German sales tax based on his home address instead of the Spanish rate 😵 We Americans running small businesses just don't have the resources to track that kind of data. Sadly.
The only way we can know a customer's location is by whatever country they list during checkout.
My guys are probably going to have to change the workflow entirely—collect the customer's data first, and then send them a pro forma invoice based on that info.

So, does the business just register for sales tax in every single state at once?

Give me one specific detail on how this actually works in practice if it’s supposedly functional. I’m genuinely curious to see the real-world application here.

Good luck 😉

amberbadger17 said:I’m honestly crossing my fingers that this means those of us running our own shows don't have to scramble for a license just yet. And if we actually do have to get one, what's the deadline for getting it sorted?

Thanks!

01.01.2018. 😳

Olivia Cruz86 said:Ugh, and how the heck am I even supposed to do that transfer? I'm still basically a total newbie with this software—I definitely didn't carry anything over yet... anyone out there who actually knows what they're doing care to help me out?

If you head over to the Tools section on the home screen, you'll see an option for Year-End Closing. Just run that, and it’ll automatically carry all your opening balances over into the new year.

Since I haven’t turned up an answer yet, I figured I’d bump this thread.

Do small business owners or LLCs that don't have a formal lease agreement—meaning their business is registered at their own home address—actually need to carry an energy certificate?

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.

Just log everything through your accounting software and mark them as non-taxable.

ruggedmaker2 said:Since they aren't explicitly listed as deductible expenses under Section 7 of the Corporate Income Tax Act, they count as tax-deductible for the winners—though honestly, I haven't a clue how it works for income earners.

Under the current Tax Law, they aren't covered by Section 25, subsection 11 regarding individual income.

11. Late payment interest resulting from overdue public obligations (such as income tax, VAT, or Social Security contributions) isn't considered a deductible expense.

Sam Evans said:Hey everyone,
I’m trying to wrap my head around this specific tax clause I keep seeing: "Non imp.Art 41DL 331/93 Chase. EU"
Basically, I'm looking at buying a used car with the intention of flipping it for a profit later on. Does anyone actually know what this legal jargon is getting at?
Thanks!

That’s just their way of saying they're transferring the tax liability.

It’s always a headache getting Italians to correctly label a reverse charge. Honestly, we might as well just study their legal code ourselves if we want to get anything done. 👏

Jack Young said:Yep, they are.

Interest paid on payroll taxes isn't considered a deductible expense for small business owners.

Here you've got all these wonderful experts who apparently know everything about everything 😉

Robin Cook4 said:Where'd you even hear that? Of course not. And why would they even need a checking account for that.

It’s about what you actually take home, not just what shows up on a gross income statement.🤔

Aaron Young85 said:Yeah, I was there for the first time yesterday too, and honestly, I just ended up feeling pretty lost and confused about the whole thing

First vote 🤷

Where did you even hear that?

Nathan Cox25 said:Check this out too
My accountant used to nag me about fixing invoices—back when things changed around 2013—if the name on the bill didn't match whoever actually paid. If they shared a last name, I could leave it alone, but otherwise, I had to go in and manually Buy the change by updating the customer info.

🤦

An invoice is issued to the person who actually purchased the goods or is using your services—it's for the client or the member paying the dues.

It makes zero difference who physically swipes the card or hands over the cash. Why would anyone care or need to justify who actually settled the tab?

And just so we're clear... once an invoice is issued, you aren't supposed to be tinkering with it or changing details after the fact. 😉

Peter Young5 said:Regards,

In my experience, the subscription status is constantly stuck on "pending"—meaning the form hasn't hit the ledger—even though the client has already paid the sales tax. It feels like a genuine issue to me.🤔

Honestly, the easiest fix would be to just give the IRS agent handling that company a call and figure out where the disconnect is. The absolute worst-case scenario here is having to resubmit the entire filing 🤷

Christian Cruz41 said:Is anyone else having trouble with the IRS website? Is it working for you guys?

Yeah, it’s up for me.😉