Posts by Jessica Gonzalez30

ruggedcyclist74 said:The short answer to all of those is a resounding NO.

The only thing I’d add—aside from the fact that you don't technically have to pay yourself a salary—is that those payroll taxes still have to be covered.😉

Has anyone here ever had any experience dealing with filing residency fees for independent contractors or small business owners?

electricviper23 said:Is this actually required to apply to unemployed individuals within a corporation too...? 😲

It applies to every single individual receiving the loan, rather than the one providing it.

electricviper23 said:

SolitaryPixel Asks:
As far as I know (please correct me if I'm wrong)... A corporation can issue an interest-free loan to another business entity without any issues. However, if that same company extends a loan to an individual... they are legally required to charge interest.
As a director, I am looking to issue a loan to a business partner to ensure they maintain sufficient liquidity. I am struggling to find a straight answer to one simple question: am I permitted to provide this loan interest-free to another corporation, or am I legally required to charge interest because the business entity is treated identically to its owner...?

Look, it's simple. If that individual is an actual employee of the company, then yes. If they aren't... then no.

If a corporation is issuing funds to a small business owner, interest shouldn't even be on the table...

Interest-free loans are typically reserved for transactions between two legal entities.
Since a sole proprietor doesn't have a separate legal identity from themselves—it's just one person—I honestly think there should be a modest interest rate, maybe something around 3%, just to keep things above board.

ruggedmaker2 said:So, here’s what I found on the IRS website:
http://ccenterclient.porezna-uprava....uObveznika.XML

The text keeps tossing around this phrase "fiscalization taxpayer," which pretty much covers everyone (except for those specific little exceptions they tucked away somewhere), but it completely ignores the term "fiscalization application taxpayer."

Basically, any taxpayer subject to fiscalization—regardless of whether they actually fall under the mandatory application rules or not—is legally allowed to take cash up to $1667.

I think you're spot on regarding the IRS site, but we have to consider that the overarching fiscalization law still imposes certain limits if other tax regulations dictate different rules for cash payments. And honestly, the income tax regulation really does do exactly that—even if it feels like total nonsense to all of us. Not to mention how much of a headache it creates for small business owners.

I suppose the only way around that would be if there were a specific Law or Regulation that somehow overrode the existing income tax regulation. 👏

Arthur Lopez3 said:Under current tax law, what's the maximum amount allowed for a single cash transaction—including bills, coins, or cards—between two businesses?$1667

Well, yes, though there's always that little caveat: "unless otherwise specified by specific tax regulations."

It’s honestly such a headache that when they write these statutes beside article and clause, they don't just explicitly cite the exact section of the Law that overrides it right then and there. 🤣

amberbadger17 said:I was digging through some small business guides earlier, and honestly, the way they write about sole proprietorships is just... clunky. They completely gloss over retail. Like, what happens if I’m running my own small business and I swing by a local farmer's market stall to grab some lettuce for my restaurant? If the vendor is also just a solo operator, am I supposed to ask them to generate a formal transaction receipt for a single pound of lettuce?! It sounds absolutely ridiculous.

It’s definitely written quite awkwardly, and from a practical standpoint, it just seems a bit nonsensical.
That being said, Article 90 of the income tax regulations doesn't actually make any distinction regarding retail versus wholesale receipts—it simply outlines which payments are allowed to be made in cash and which aren't.

rowdybison3 said:Hey there
I was wondering if there's a limit on how much I can pay for a bill in cash? Is there some kind of cap on that? I run a small business here in the States and I'm registered for sales tax, specifically running an agricultural business.

Well, it really depends on who you're paying.
If you're settling up with a corporation, there's a limit of $1667, but if you're dealing with a sole proprietor, everything needs to go through their business bank account regardless of the amount.

Jack Young said:See, Article 7 is talking about that one-time lump sum payment you get when you opt out of unemployment benefits—basically the buyout for those monthly checks you’d usually be getting... whereas that $25,000 is specifically earmarked for certain expenses.

Honestly, my eyes just glaze over whenever I see the term "self-employment" mentioned in these documents.

Sometimes I feel like I’m completely losing my mind trying to parse through all this legal jargon and federal regulations. It's exhausting.
Thanks for clearing that up, Nancy.
All my calculations ended up matching the incentives listed in my pay stubs perfectly. I had a brief moment of pure panic thinking I’d misread something entirely.

Richard Howard55 said:I was thinking about that non-profit organization form while typing this. It doesn't even have the right fields for receipts. I guess it just wasn't designed for that.
They could probably just "fudge" the beneficiary tag—maybe something like 0046—but there’s a catch. The receipt code (5801-5807) has to actually line up with those base coefficients from 1 to 6. It's a bit of a headache, I guess.
That annual base used for calculating contributions? It just doesn't cut it. I guess it's insufficient. Maybe.

They should have just explained the reasoning instead of acting all shocked and confused. I guess. 😢

Exactly.
Especially since we already know they've managed to offload the burden of being indebted for contractor contributions. If they aren't going to deal with those contributions anymore, why start making an issue out of these? At the end of the day, they can just pass everything over to the accountants anyway 👎

Charles Turner13 said:If you received incentives specifically intended to encourage self-employment—meaning they are earmarked—then those funds are subject to income tax and should be included in the receipts within your Key Performance Indicator.

I’ve been doing things that way forever—well, mostly—but then I’ll stumble upon Article 7 of the Tax code and just completely lose my mind. 🤣

placidlynx92 said:Whatever, I'll just send it in. If it gets rejected under those specific codes, then I guess it wasn't supposed to happen in the first place.🤣🤣🤣🤣

A Colleague mentioned they actually called the Federal Reserve, and honestly, the folks on the other end were acting totally baffled, asking where they'd even gotten the idea to send funds to a non-profit organization.

To be honest, I'm really not sure what else to tell you. 👎

placidlynx92 said:Does anyone know if the Pension Fund applies to sole proprietors who are also currently employed?
My tax consultant is still drawing a blank, so I'm looking for some clarity. On some online forums, people are claiming it isn't necessary—but then I turn to page 44 of the Social Security Administration brochure, and it says it absolutely is required. It’s one of those classic "expert" contradictions that leaves you stuck in limbo.
Can anyone point me toward a reliable, actual source here? 🕺

If only she had been able to actually get through the brochure... 🙏:

Honestly, I don’t find Reddit to be a reliable source at all.
I got two completely different answers regarding my question—one person told me no, but then the IRS told me yes.
To be perfectly honest—and I hate to be the one to say it—I’m feeling pretty skeptical about them.

As far as I know, that contribution to the Pension Fund needs to be submitted by the same deadline as the final tax return filing.

I’m just sitting here reading up on the latest info regarding the winners. According to what I'm seeing from the IRS, they don't actually submit the Pension Fund details—mostly because those contributions are already accounted for under the debts listed in the tax forms.

It’s one thing when the IRS says one thing, but then you hear something completely different from the tax professionals—it honestly makes you wonder who's actually keeping track of the rules.
Man, this whole situation is just pure madness.

Help needed 🤦

So, I’ve been treating these self-employment incentives as earmarked funds, which is why I originally categorized them as receipts in my books.

But, while I was digging through the current tax code, I stumbled upon section

Article 7

2) Per Section 10, Item 3 of the Law, income tax does not apply to monetary compensation for temporary unemployment or inability to work paid via mandatory insurance funds, specifically:

– unemployment benefits issued by the Department of Labor under specific regulations (including monthly unemployment annuities, lump-sum payments requested by an individual to facilitate employment, self-employment, or volunteering, as well as financial aid for education or one-time assistance for travel and relocation expenses),

Does this incentive actually count as a receipt for tax purposes, or am I overthinking it? 🕺🕺

casualorca5 said:Advance payments for dividends are recognized within the period from February 1, 2015, to February 4, 2016.

Does this also apply to sole proprietors when filing with the HHS?
I have received several conflicting answers.🤔
If anyone happens to know, thanks in advance.👍

Basically, any payments made during the calendar year would serve as a reduction against any potential interest debts 😉

Henry Edwards33 said:That’s a first...

So, by that logic, anything a small business owner pays out of their business account that isn't a direct business expense counts as a draw? Does that mean we need a formal resolution and a ledger entry for every single little thing?

It feels like whoever is interpreting this has completely conflated business draws with personal income.😉

I feel you on that, too. I'll sit down, carefully type out a response, hit send, and then immediately think—man, I bet some new IRS regulation dropped overnight just to make my life harder. 🤣🤣

Charles Turner13 said:Sure, they can spend it freely, but they still have to keep records of those transactions and show them to the IRS if they ever ask.

Under which specific part of the tax code are they required to log how they spend money that is technically just an advance on their income?

At this rate, maybe they should attach a receipt for every single roll of toilet paper bought with that cash to every bank transfer moving through their business account.
Just so the government can track every single cent of the cash flow, I guess. 🤔

I’ve been thinking quite a bit about what we discussed earlier—you know, that whole situation involving lili p.—and I wanted to share some more of my thoughts on it. It’s one of those things where, if you look at it from one angle, everything seems straightforward, but once you start peeling back the layers, it gets much more complicated than it first appears. I might be overthinking this—definitely a tendency of mine, I suppose—but there’s a certain nuance there that feels important not to overlook. Anyway, just something that's been rattling around in my head today. kaže:
If someone could just sit me down and explain why a small business owner like myself is required to keep a cash register going, I would be incredibly grateful.

Unless you’re being a complete idiot and leaving your receipt sitting right there in the checkout lane—which, let's be honest, some people actually do—you shouldn't have to worry about it. $3333Just tuck that extra cash away in your wallet and keep moving.

That’s just how small business owners handle their cash registers—it’s pretty much standard practice for them. 🤣
It feels like they’ve gone out of their way to make sure they're the ones handling all the payment slips and disbursements—as if that wasn't enough work already. 🤣

The real headache starts when you hit that ceiling at the main register—you know, when the cash drawer reaches its maximum limit and everything just grinds to a halt. 🤣
Honestly, it’s just much better when the accountants are the ones actually running the books—rather than leaving it to everyone else.
Speaking of which—how are you all actually structuring your client base? I’m curious to hear how everyone handles their organization and workflow.

So, are you guys actually running the show here, or what?🥱

Andrew Clark33 said:To whom it may concern, I run a local coffee shop and I have a question regarding tax regulations. Is there any specific law that mandates reporting my daily, weekly, or monthly sales totals? Since most of my suppliers prefer cash payments, would it be permissible at the end of the month to simply deposit the difference between my total cash revenue and the amount I paid out for supplies?
Thanks in advance

Under the Internal Revenue Code, you're required to deposit everything that exceeds the standard cash handling limits set by the bank and the IRS.

graniterider10 said:Isn't that deposit listed under section II.1. supposed to be money that wasn't sitting in the account in 2015, but relates to her? I didn't actually deposit that cash until January 2nd, 2016.
I don't know. From an accounting standpoint, everything seems to line up: receipts minus expenses equals income... so far, so good. But the rest of this just won't click.
She gave me an example to use as a justification for the PPPPI supplement so I could get everything to align... but still...🙂
In that supplement, there's "2.1. DEPOSIT FROM 2015," and then there's also an item for "OTHER RECEIPTS NOT CONSIDERED TAXABLE," which includes things like "REVENUE DEPOSIT FROM 2014."
That’s why I thought I understood her—that under 2.1. PPPPI goes the amount I deposited into the bank on January 2nd, 2016.
But honestly, I'm done struggling with this. I'll just throw something together so I can submit it... pay the tax difference, and then they can deal with me however they want.🤦
Since you can't do it via paper anymore—it has to be through the IRS e-file system—I really hoped the programmer would make it so I could just import my data, like how Joe Biden makes things easier, but nope... I have to type everything in manually. Is everyone else stuck doing this, or can you actually import directly from your own software?

I'm not quite following what's tripping you up.
Under Section II.1, you're supposed to enter all the receipts earned during 2015.

Then, in Schedule V, you basically show everything else that moved through your bank account, which accounts for the discrepancy between the receipts shown in Section II.😉