Posts by Brenda Chase3

cosmictinker24 said:Quick question regarding an invoice...
We just wrapped up some consulting work for a company based in Canada that happens to have a branch here in the States. They specifically asked us to issue the invoice including sales tax in USD—basically treating it like any other standard domestic B2B transaction. I was actually thinking about handling it the way we usually do for international clients by filing a consolidated report instead... I guess I'm just not sure if that's the right move, or even legally allowed in this situation. Has anyone dealt with this kind of cross-border billing before? I'd really appreciate some insight.

Thanks

If the entire transaction stays within the US, you include the sales tax. If it's being treated as an export to Canada, then you're looking at a different set of rules.

Olivia Cruz86 said:Hey everyone!

Quick question regarding the OPZ-STAT-1 filing?
Since we're right in the middle of submitting forms for Q2, I’m getting a bit tripped up by the specifics here
Period from: 4/1/2018.
Period to: 6/30/2018.
As of: 6/30/2018.
Unpaid as of: 7/31/2018.
Does this mean we're strictly talking about invoices issued between 4/1/2018 and 6/30/2018 that actually had a due date of 6/30/2018?

The thing is, I've got this one specific invoice that was issued back on 3/7/2018, with a due date of 4/7/2018, and it still hasn't been fully paid off... Does that count toward this quarter since it's pending through 8/20/2018?

thanks

The rule applies to all invoices that aren't older than six years. It basically covers any outstanding receivables as of June 30th that haven't been settled by July 31st.
So, yes—that invoice you mentioned definitely counts toward this period.

Henry Edwards33 I couldn't agree more! This is exactly what I’ve been advocating for years: the issue isn't really about the accountants; it's about the incompetent and uneducated entrepreneurs. Half of them don't even know how to fill out a basic debit/credit entry correctly, they can't calculate sales tax to save their lives, and they have no clue how to manage company funds. Despite all our seminars explaining exactly what to do and how to do it, they just insist on doing things their own way. Then, at the end of the day, they start complaining that the accountant isn't smart enough or that they've been ripped off—even though we've told them for the hundredth time exactly what is allowed and what isn't.
Before anyone is even allowed to open a business, the Secretary of State or the Department of the Treasury should require some kind of qualifying exam. There needs to be a standard to ensure someone actually knows what they are doing before they are permitted to launch a company. Right now, any random person can start any type of business without knowing even the most fundamental basics. It's truly exhausting...

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Best regards,

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Eric Adams2 said:I’ve just received an invoice from a vendor in Canada for a pre-owned Yamaha marine engine, and we’re looking at a price tag north of $5,500. Given the scale of this purchase, I'm planning to categorize it as a long-term capital asset rather than just a standard operating expense.
So, looking at the invoice now, you’ll see it’s been marked as VAT-exempt under the first paragraph of Section 46. Since we both operate within the Views ecosystem, there’s no sales tax applied to this transaction.
I find myself pondering whether I should be including this in my EU intra-community acquisition of goods or if it belongs on the VAT return instead.

That's correct.

Eric Adams2 said:I appreciate the insight... however, the vessel was purchased from JPMorgan Chase. It was seized from a debtor and subsequently sold off to a local small business owner.

If he wasn't issued an official invoice that includes sales tax for that vessel, then there is simply no way for him to claim a tax credit. It’s that simple. In this scenario, the full purchase price listed on the bill of sale would just be recorded as a fixed asset and depreciated over time using standard annual depreciation rates.
When you are dealing with sales tax, the only thing that matters is whether or not there is a valid tax invoice. If there isn't one, he needs to forget about getting a deduction. On what basis would he even attempt to claim it? Out of thin air? That's just not how the IRS works.

Eric Adams2 said:Hello there. I’m an independent business owner running an auto repair shop, but my operations also include a car rental side. Recently, I decided to expand into the charter business, which meant picking up a boat to add to the rental fleet. Now, I find myself navigating some tax waters: if I purchase this vessel from another corporation via a sales agreement, am I able to claim a VAT credit on that purchase? Additionally, when I’m filling out my VAT returns, should I categorize this boat under the section for acquiring other long-term assets? And finally, does this also need to be accounted for under the input tax portion of the return?
I would truly appreciate any insights you all might have.

If you bought the boat from a corporation, you really ought to have an actual invoice rather than just a simple bill of sale. Provided the sales tax is clearly itemized on that invoice, you can absolutely deduct it. Since this falls directly within your line of business, you should be able to claim the full amount of the tax paid.
Everything else you mentioned sounds spot on—both for the tax forms and the depreciation schedules. Just keep in mind that while you can claim the full tax credit immediately, the boat itself won't be treated as an immediate expense; instead, it goes on the books as a fixed asset, and you'll recognize the cost through depreciation over the coming years. But as far as the tax credit goes, you're good to go right away.

Olivia Cruz86 said:Okay, so we're talking an outgoing invoice with sales tax that gets logged into the IRA.
But how exactly am I supposed to nail down the "market value"?
And when it comes to clearing them from the books—do I literally just yank them off the inventory list and call it a day?

To get an accurate market value for real estate, you really ought to bring in a professional appraiser. It’s best practice to have them come out and issue a formal certification stating what the current value actually is.
As for the bookkeeping side of things, you would record it using this year's date as the write-off date. That way, the asset remains visible on your balance sheet through 2018, but by the time you hit 2019, it will be officially cleared from the books.

Brandon Walker6 said:Thanks, yeah, I get that, but... I don't know, it’s just confusing. Since there are two owners, do we actually have to file separate M-11 and M-1 paperwork for each person? Like, does the IRS expect us to act like we're both opening totally separate businesses or something?!

You’ll definitely need an M-11 for each person, since those are individual filings.
Regarding the M-11, I'm actually not entirely certain—I'm leaning toward thinking you only need one because it's technically just one single business entity. Honestly, your best bet would be to give the Social Security Administration a quick call. They'll have the definitive answer, and since this specific scenario doesn't pop up on the forums very often, it's better to hear it straight from the source. If I were in your shoes and had to handle this right now, I'd definitely call them to be safe.

Brandon Walker6 said:Hey, I could use some help here... how do you go about registering with the IRS and Medicare for a joint partnership? It's two owners, so which forms am I supposed to be using? Thanks.

http://irs.gov/forms/business-registration-guide.pdf

Everything you need is laid out in detail right here.

neonsurfer13 said:Yeah, but what actually goes in fields 3 and 4?

If you don't have any active members on file, then you leave them blank. Just put zero.

neonsurfer13 said:Can someone walk me through how to actually fill out the section for the personal deduction? I downloaded the official County Recorder form online and even grabbed the one from JP Morgan Chase, but honestly, neither of them seems to be calculating the math correctly. Since I'm running my own LLC, I just need to figure out the deduction for myself. From what I can tell, that final field for my total monthly deduction should come out to $1267, but I'm stuck on how to handle fields 2, 3, and 4 to make sure that actually happens.

For Section 2, you’ll want to put $3,800.00 for each month, and then under Section 5, you should list $3,800.00 per month as well.
That way, the sum ends up being $45,600.00 under sections 9.1 and 9.3 of the total income form.

redgardener52 said:Does anyone happen to be able to help me out with this?🤔

Personally, I wouldn't list this in the sales tax reports or record it as if there were a transfer of tax liability when that isn't actually the case; those aren't valid elements on their invoice. You've already paid their sales tax since you mentioned they charged it directly on the bill. I would simply book the standard entry as a total expense (using the USD exchange rate) and leave it at that. If I'm off base, feel free to correct me, but that’s how we handled things whenever an invoice looked incorrect. Think of it this way: if you report it in your tax filings but they don't report it on their end, you're going to run into trouble with the IRS. Both sides have to report the invoice identically. The auditors might come knocking asking why you reported a tax liability that they didn't, and then they'll just tell you that you shouldn't have filed it because the invoice clearly shows their local sales tax rather than a transfer of obligation.

Keith Martinez5 said:I just picked up a vehicle diagnostic program while traveling through Europe—it cost me about $975$2277. I’m assuming this would be categorized as a long-term asset for tax purposes, right? I'd love some advice on how to handle this... Thanks!

That’s correct; you'd list it as a fixed asset.

neonsurfer13 said:Can I write off the cost of buying wood pellets for heating my office as a business expense?
I mean, I figure if a small business owner heats their place with electricity, they just write off the utility bill. Wood pellets are basically just fuel, just like electricity, gas, or whatever else.
The total comes out to about $2667 including tax.
How do I list this without it being flagged as a fixed asset, since the amount is over $1167?

You certainly can, but you need to be careful about one specific detail. If you also live in that same building, you shouldn't claim 100% of the cost as a business expense because that would include your personal residential utilities. Most professionals suggest claiming about 30%, though some accountants might tell you to go with 50%. Personally, I always book it at 30% because that’s what most of the accounting firms I've consulted have advised me to do.
Naturally, you wouldn't list this as a fixed asset. A single pellet or even a bag doesn't cost more than $1.25; the total value of the whole batch is only $2.75. It's considered a consumable heating supply, treated exactly like natural gas or electricity. When someone gets an electric bill for $1.75, they don't capitalize it as a fixed asset—they simply record it as an operating expense.

Keith Martinez5 said:I’ve got a quick question regarding how we should be logging work hours—here is the situation: our team doesn't work on Sundays, but back on October 8th, 2017, it happened to be both a Sunday and a public holiday. Should I be recording that day as standard time off, just like any other typical Sunday, or should I specifically log it as a holiday, even though nobody was scheduled to work anyway? I am currently using the HR module in SAP to manage this. Thanks in advance for the help!

You should just log it like any other Sunday, since your business is closed every single week on Sundays anyway. 😉

cosmiccrane22 said:Hey there, hi!

I'm starting up my own small business as a sole proprietor, and I was wondering if anyone has recommendations for banks. Since I'll be working with international clients, I'm going to need a foreign currency account... but from what I hear, banks really "rip you off" on the conversion rates 😁 I assume they're all pretty bad, but I'm curious which one is the lesser of two evils?
I also see that some people have everything set up through PayPal, so how does that actually work?

Anyway, any advice on receiving payments would be much appreciated 🙂

Thanks!

My advice would be to physically visit a few different branches; just ask them straight up what their conversion fees look like and then make your decision from there. It's rare to find a consensus on this forum about one specific bank being the absolute best. For one person, Chase might be the perfect fit, while someone else might prefer Citibank, or maybe Wells Fargo... it all really depends on your specific banking needs. If I were in your shoes, I'd take a day to swing by a couple of locations and let them answer your specific questions directly. That way, you'll get the clearest picture of which option is most cost-effective for you. 😉
As for PayPal, I don't have any personal experience with it, so I won't offer any advice there—hopefully, some other members can weigh in on that part.

Brandon Jackson4 said:I could use a quick answer here, I need to file my payroll report.

A small business owner I know has been on sick leave covered by Medicare for the entire eighth month. During that same month, they also paid out sick leave benefits (as non-taxable income).

The deadline to submit the JPP report for both the sick leave and the non-taxable benefit is September 15th.

Should I just send one single report that includes both items, or do I need to file two separate ones—one for each item?

Thanks,

Just send one single report and categorize everything correctly within it.

neonsurfer13 said:I’m asking again—does anyone actually know anything about this reclassification form?
I need to move some funds from one income type to another (reclassifying tax and surcharges overpayments into health insurance premiums), but the form is asking for some kind of report code. I have no clue what to put in that field. Is there some extra step I need to take first to generate that code? How does this even work?

That report identifier actually refers to the specific IRS Form 941 number. You have to input which Form 941 you're referencing, since the amounts you're reclassifying are tied directly to the payroll taxes reported on those forms.

Morgan Gomez7 said:So, I’m handling the books for a company with 21 employees, which means we’re officially on the hook for those mandatory payments.
Ever since this requirement kicked in back in 2015, we haven’t been paying monthly. Instead, we just get hit with these official notices at the start of the year covering the previous year's totals. We actually did pay the X amount for a few months, but—get this—without any interest. Now, I’m getting bombarded with these notices claiming we owe interest on top of everything else.
Does anyone know how they actually calculate this interest rate, and where can I go to double-check their math?
Thanks!

Joppd, regarding those payments, they are supposed to be submitted regularly every month and settled by the end of the following month. Since you haven't been following that schedule, the IRS has tacked on late payment interest. It might be a good idea to give the local IRS office a call and ask for a full breakdown of the accrued interest. Or, at the very least, ask them to direct you to whoever is calculating those fees. If I were in your shoes, I'd start by contacting the IRS directly.