Posts by Thomas Diaz8

Is a small business owner allowed to write off the cost of their own supplemental insurance policy as a tax-deductible business expense?

Is it possible for me to purchase a microwave for the office and write it off as a deductible business expense? (I am operating as a sole proprietor)

David Green642 said:Sure you can—just make sure the date falls before the 2014 sales tax deadline, or specifically within that Q1 2014 window.

According to the guidelines for preparing final settlements issued by the IRS, it states the following:
If omissions in sales tax filings are identified during the period for submitting the final settlement, corrections should be made within the final settlement itself rather than through an amended return for a specific filing period.

Based on that, I suppose I don't actually need to amend the sales tax forms I've already sent out; instead, I just handle the correction within the sales tax audit form.

Is my understanding correct, I guess?

David Green642 said:Just amend the sales tax return for specifically that quarter where you spotted the error. I suppose the 2014 annual totals will be affected too, so one should probably watch out for that.

I wonder if it is even possible to file an amendment right now, given that the original sales tax return was for the first quarter of 2014? I have already submitted three subsequent returns since then, so I am not entirely sure how that works.

At the end of last year, I purchased a computer that's being recorded as a fixed asset for my small business. I'm wondering about the VAT treatment here—do we calculate and claim the full credit all at once, or am I supposed to book it incrementally alongside the depreciation over a two-year period?

Carol Price4 said:Just fix it in the KPI—the sales tax return will pick up the difference automatically.

Thanks for the response.
I have another question brewing here. This year, our service revenue fell below $76667, which means we’ll be dropping out of the sales tax registration system altogether. I suppose my concern is whether we still have to report and pay sales tax on every single invoice we issued before the transition. We have quite a few outstanding invoices that we haven't been able to collect yet. Some of them even went into pre-bankruptcy settlements, but we still haven't seen a dime. So, my actual question is: does exiting the sales tax system imply that we are liable for the tax on all invoices issued, rather than just those that were actually paid? Thanks in advance!

I am reaching out because I could use some guidance here.
An accounting error has just come to my attention, and it’s one of those things that really sticks in your craw once you notice it. Basically, an invoice was issued for $758, but the actual payment received was $2,270.00. However, it was recorded in our KPI as if the full amount had been settled—meaning we over-recorded the payment by five dollars. To make matters more complicated, that extra five dollars was already included in our sales tax filing. I suppose I’m wondering how on earth to rectify this. Is it possible to simply adjust the payment entry within the KPI to reflect the correct $2,270.00, and if so, what should be done regarding the discrepancy in the sales tax? I hope my explanation is sufficiently clear. Thank you in advance.

Hello, I am looking for some assistance here.

A small business owner hasn't been paying himself a monthly transit pass, nor has he been claiming mileage reimbursements for his vehicle. Now, I find myself wondering if he is legally permitted to pay for an annual public transit pass based on a provider's receipt, and subsequently record that expense through the standard payroll tax filings?