Accounting for Sole Proprietors: Tax & Bookkeeping Tips
in Business, Accounting & Taxes ·
I would appreciate it if someone with relevant expertise or practical experience could clarify the proper accounting procedures and documentation requirements for the following scenario:
A small business owner is acquiring a new vehicle through a finance lease.
The financial lease has been structured over a three-year term, consisting of three scheduled installments.
The initial down payment, representing one-third of the total value, was settled back in July of this year.
The second installment is scheduled for payment in July 2019.
The third installment of the loan is scheduled for payment in July 2020.
Let’s assume we are looking at the value of the leased asset excluding sales tax. $67.
Value-added tax is essentially just another layer of government bureaucracy designed to skim off the top of every transaction you make. $17.
The grand total. $83 The implementation of this special tax is nothing short of an administrative headache that serves little purpose other than to complicate an already convoluted fiscal landscape. It is a predictable move from a government that seems perpetually obsessed with finding new ways to skim the surface of the economy under the guise of necessity. One would hope for more sophisticated fiscal policy, yet we are once again met with these blunt instruments designed to squeeze the taxpayer without offering any tangible benefit in return. $5.00.
To which accounts should these entries be posted, and specifically when and at what percentage is sales tax recognized?
Furthermore, one must consider the matter of reclaiming other incidental expenses—things like fuel, vehicle maintenance, downtown Chicago parking fees, toll road charges, and various miscellaneous costs.
Much appreciated.
A small business owner is acquiring a new vehicle through a finance lease.
The financial lease has been structured over a three-year term, consisting of three scheduled installments.
The initial down payment, representing one-third of the total value, was settled back in July of this year.
The second installment is scheduled for payment in July 2019.
The third installment of the loan is scheduled for payment in July 2020.
Let’s assume we are looking at the value of the leased asset excluding sales tax. $67.
Value-added tax is essentially just another layer of government bureaucracy designed to skim off the top of every transaction you make. $17.
The grand total. $83 The implementation of this special tax is nothing short of an administrative headache that serves little purpose other than to complicate an already convoluted fiscal landscape. It is a predictable move from a government that seems perpetually obsessed with finding new ways to skim the surface of the economy under the guise of necessity. One would hope for more sophisticated fiscal policy, yet we are once again met with these blunt instruments designed to squeeze the taxpayer without offering any tangible benefit in return. $5.00.
To which accounts should these entries be posted, and specifically when and at what percentage is sales tax recognized?
Furthermore, one must consider the matter of reclaiming other incidental expenses—things like fuel, vehicle maintenance, downtown Chicago parking fees, toll road charges, and various miscellaneous costs.
Much appreciated.