Posts by rowdybison3

Hey,

My sole proprietorship has a car listed under fixed assets. I didn't buy it through the business originally; I just added it to the asset list later via a formal entry. I'm wondering if I should just issue a regular invoice with a 10% sales tax, or if I shouldn't include tax at all. The person looking to buy it claims they heard that when you buy a vehicle from a small business, you don't have to pay sales tax. I'm not so sure about that, I guess.

Anthony Gonzalez17 said:Much appreciated; that is precisely how I calculated it, and I have already got the records all prepared and ready to go.

Regarding the federal grants, people seem pretty split on how to handle it. I actually got a call from the FBI because my Form W-2 was giving them trouble. There’s also a lot of conflicting info about depreciation amounts and recognized income, so I'm honestly a bit lost on what's right. Some advisors say you should recognize a proportional share rather than just the depreciation amount.

Olivia Cruz86 said:So, I’m staring at this CDC form and my brain is basically melting—regarding the tax and surtax payments—should I be listing the stuff actually paid during 2016, or am I talking about those advance payments made for 2016 (you know, the ones wrapped up by January 31st, 2017) that specifically cover the December 2016 period?

thanks

I just put in what was actually paid in 2016. I don't include any 2017 payments, even if they're meant for December 2016.

Anthony Gonzalez17 said:How on earth are we supposed to accurately report subsidies received for purchasing depreciable assets? Here is the situation: a client received USDA funding to build a vacation home. The property is classified as a depreciable asset with a 10% depreciation rate (or double declining balance at 5%). The annual depreciation amount comes out to roughly $22,000. Now, should the subsidy be recognized at 10% of the total grant received, or should it match the calculated depreciation amount? Because according to the tax code, the subsidy in the tax period is recognized in the amount of the calculated depreciation (Section 20, Subsection 7), yet my colleague insists—quite stubbornly, I might add—that it should be recognized at the same percentage used for profitable entities.

I guess I just do it this way: if my depreciation is $33333, I recognize the subsidy for that same amount, so $33333. It’s worked fine for me. Plus, that’s what it says in the HHS Regulation 1/2017 appendix on page 32. Just a heads up, you also need to keep records of any government subsidies you get. You'll need to attach those to the tax return.

Kate Adams7 said:That’s honestly the best way to play it. In Synesis, I'd just log those receipts as off KPI—mostly just so I can keep my own sanity and stay organized. Then, for the PPPI, you just pop them under field V.2.3 and attach the statements showing those loans alongside your PDoh and PPPI. Do that, and nobody's going to give you any grief about it. 🙂

Thanks!

I was wondering if I should be recording loans in the KPI book. When I'm logging income and expenses in Silicon Valley, there's an option to mark them as outside the KPI. Is that actually okay, or should I just leave them out entirely? And if they do need to be recorded, do they end up on the P-PPI form too?

Nicole Lee6 said:No, it won't, because income tax isn't a tax-deductible expense.

Thanks

Hey everyone,

My small business pays a subscription fee for the radio in our company car. We bought the vehicle through the business, but I use it for personal stuff too, so I usually split the expenses 70/30. Should I handle this specific bill the same way, or can I just write off the whole thing?
Also, I was wondering about this:
The owner makes monthly income tax prepayments. Since those prepayments aren't listed as business expenses, if there ends up being a remaining tax bill after the final calculation, will that count as a deductible expense?

Hey everyone,

My small business pays a subscription fee for a radio receiver in the company car. The vehicle is registered to the business, but I mostly use it for personal stuff, so I split the expenses 70/30. I guess should I be treating this bill the same way, or can I just write off the whole thing?

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.

Jessica Gonzalez30 said:You can basically treat this as a barter or offset transaction between the company and the Family Farm. You'd record the settlement of the debt by offsetting the amounts, and then you just close out the remaining balance as paid.
I think that makes sense—though, if I'm being honest, I might be slightly underselling the technical side of how you actually close that second part out.

The issue is I sent them an invoice for $24000, but they only sent me $70,000.00. The rest of the $667 won't pay up because their invoice was made out to $667 personally instead of the LLC, so they just paid the difference. Now I've got this $2,000.00 gap showing as a debt, and I'm not really sure how to clear it without triggering some kind of sales tax headache.

Brandon Jackson4 said:John Doe got the IRS portal up and running... no more blocked fields...

Well, now, look at you lot... all jumping on the bandwagon to go after John Doe...

I have a quick question for those who have been sending John Doe's for "years" now...
Can I send the payment to John Doe first, and then handle the contributions later...

Thinking about sending it over to John Doe around 1 AM... if everything clears by 8 in the morning, I'll sign it and get it sent out. Only then will I open up the contributions...

I’d probably go that route... I run into issues with signing and sending things all the time.
I wouldn't want to end up in a spot where I've already sent in my contributions, only to find out I can't submit the actual form...

So, is it possible to file the form first and then handle the payments... all within that same 24-hour window?

Thanks...

Yeah, you can send the form first, just make sure the payment clears on the same day.

Hey,
I handle the books for a Small Family Farm and I’m a bit stuck on how to settle this one:

Our farm sent an invoice to a company, but they paid us a reduced amount. Basically, they just subtracted what we owed them from our total. How should I record this in some simple bookkeeping? I also have to account for the fact that they didn't actually send the payment until early 2015, even though the bill was from back in 2014—so that debt has been sitting on our books for a year now.

Any help would be great.