Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
Hi there,
My wife runs a small sole proprietorship, and she’s currently sitting just under the $300,000 $0.00 threshold.
She’s working out of a local business incubator and gets some municipal support in the form of a rent discount.
In our area, the first year of rent is free for startups—or, if you aren't registered for sales tax, you only end up paying 25% of the standard rate.
Since she's just starting out and only paying that 25%, my question is: since the city isn't handing her actual cash but just applying that discount to her rent, does that remaining city support count toward her $100000?
My wife runs a small sole proprietorship, and she’s currently sitting just under the $300,000 $0.00 threshold.
She’s working out of a local business incubator and gets some municipal support in the form of a rent discount.
In our area, the first year of rent is free for startups—or, if you aren't registered for sales tax, you only end up paying 25% of the standard rate.
Since she's just starting out and only paying that 25%, my question is: since the city isn't handing her actual cash but just applying that discount to her rent, does that remaining city support count toward her $100000?