Just one more follow-up regarding the PO transfer. It looks fine over at the IRS, but how am I supposed to record this in the KPI? What figure should I be using? If I enter 310, the system automatically calculates sales tax, which is definitely not what I'm looking for here.
Alright, it's sorted. I managed to get everything set up correctly. The only thing left hanging is that question about the Form 1099. 🙂
placidlynx92, thanks for the reply. I’ll give that a shot.
I’ve got another question, though. Regarding the DI form—whether I try uploading the file directly from my software or manually typing everything into the e-filing portal, I keep getting this error: DATA ERRORS IN FORM—this version of the form can no longer be submitted. It says I need to use the 2016 version.
But how on earth am I supposed to find that 2016 version?????
Can someone please tell me if I handled this tax liability transfer correctly? In my IBM software, when I enter the amount, it records both the base and the sales tax as negative values. So, I entered $6,387.50 as the total including tax under code 6, then put $6,387.50 under code 7 for domestic transfers. Then, under code 20, the program automatically generated -$3,100 for the base and -$775.00 for the tax under code 22. Does that sound right to you guys?
Carol Price4 said:You just book the total bill amount $472, claim the input sales tax of $92, and exclude the part that isn't taxable ($11)—plus the subtotal as usual—(I'm assuming some is for the phone itself and some is service fees).
That "amount due" bit is really just a note for the customer showing what they need to pay upfront before the rest goes onto installments.
Fine. That’s how I used to book things at an architectural firm.
But now I'm wondering, can I—or should I—record the actual cash outflow of 256.16 through the petty cash account in Synesis, while reporting the sales tax exactly as it appears on the receipt? Is that actually allowed? Because if I do it that way, my expenses will perfectly match what I actually paid out. Ugh... sorry... whenever something falls outside my usual bookkeeping routine, I totally freeze up. I rarely run into weird scenarios like this, but here we are... I'm stuck.😢
Are there any updates regarding how we should be booking those hiring incentives? I mean, am I still supposed to record them as receipts for the full amount exactly as they were paid out? For example, if the money hit my bank account on November 15th, I’d just go ahead and book the receipt in the KPI on that same date.
Brenda Chase3 said:You should record the invoice as an expense, and those $0.67 will go toward your expenditures. You'll need to report the $2,000 base amount and the sales tax of $167 on your tax return under sections II.4 and III.4.
So I'm working on this sales tax form right now and I see that the transfer of the tax liability—both the tax owed and the credit—is handled on the form. Is that actually okay? I just don't want to screw something up here. 🤦😵
Lupita Nyong'o, thanks for clarifying the tax stuff. Now I'm wondering about something else. I haven't actually dealt with this specific scenario yet, so I'm a bit lost on how to handle a tax liability transfer. I just received an invoice because of some recent repairs, but there’s no sales tax calculated on it. Should I just record it exactly as it is, without any tax, and then just list the required sales tax separately on my tax return, or is there more to it than that? Also, is the amount I actually paid considered the base for the sales tax? For example, if I paid $667, does that mean the sales tax is $167?!
Hey there. Does paying the tax difference after filing my return count as an expense? Monthly tax prepayments don't count as expenses, right? I guess that means the final balance doesn't either.
casualorca5 said:I am not downplaying anything, nor am I sending anyone a check.☕ Why complicate things?😁
Sure, you aren't downplaying anything. But you *are* downplaying what the State Employment Agency deals with, since they're the ones actually cutting the checks. It’s your responsibility to include any sick leave hours in the monthly timesheet you submit to them, along with the actual doctor's note/pay stub for that leave.
Carol Price4 said:Looks like you missed something—if you add up the lines, it comes to 606.22, but you've got 607.22 written down below. $0.33??
You didn't actually get those items for free—you charged them 2 cents for the 3 units. So, when you divide that by 3, you get 0.006, which you can just round up to $0.00 for the unit cost—then just shave off a penny somewhere else to make the totals match up perfectly...
Hey there. I’m trying to work out some sales calculations here. For a specific product order, I ended up getting 3 items for free. I'm honestly a bit stuck on how to run the numbers since I actually want to sell those freebies too, if that's even an option. Right now, it looks like this: 4 products at 61.60 tax 25% total 245.40 5 products 61.60 25% 308.00 1 product 52.80 25% 52.80 3 products 79.20 discount 99.99% 0.02
SUBTOTAL 607.22 DISCOUNT 237.58 TAX 151.81 TOTAL DUE 759.03
OF COURSE I have absolutely no clue what I’m supposed to do with these new security certificates!😢 I spent the entire day convinced my internet was acting up, but nope... turns out it wasn't the connection at all. 😉) Can someone please just explain the process? Like, step-by-step. I tried reading through the instructions myself, but I am just so exhausted... and honestly, nothing is making sense. haha... even if I weren't totally wiped out, I still wouldn't get it. 😉)
Like I mentioned before, you need to get the Agreement notarized... make sure you have all three copies, because you'll need to take one of them to the IRS. What else? Honestly, everything is changing. I think the only thing staying the same is the existing business checking account. Everything else is being updated to the new owner's name, and actually... you don't really gain anything from this transfer. The only thing is, maybe closing it down will be complicated... I don't know. Just make sure you don't cancel your dad's certificates right away, because you're still going to need them for a while to file forms under his SSN.
1. Unpaid vendor invoices due by January 2015. The list of unpaid invoices is attached to the transfer agreement.
2. Outstanding liabilities owed to the IRS and the Federal Budget, consisting of unpaid sole proprietor obligations totaling $_____________, as well as the sales tax liability for December 2014 in the amount of $__________________.
2.
The Transferor transfers to the Acquirer the right to use all items on the list of long-term assets, the right and obligation to calculate depreciation for used assets, and the option to exclude specific items or rights from the list of di, provided there is a valid basis for doing so.
The total acquisition value of the transferred assets is $_____________, representing a book value of $_________________ as of December 31, 2014.
3.
This agreement becomes effective on January 1, 2015. 4.
This agreement is executed in three original copies.
Sorry, I have to post this in chunks because my computer keeps shutting down on me.😢
The existing business checking account, which was opened at Chase Bank (account number XXXX), will remain the Acquirer's business account. This means that starting January 1st, all receivables and liabilities originally held by the Transferor automatically become the responsibilities of the Acquirer—including all income and expenses.
The specific liabilities the Acquirer will take on on behalf of the applicant are as follows: