Started by ruggedheron13 · · 👁 53 views · 2.2K replies
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placidlynx92 said:I include them for 12/2016, because the IRS also charges those prepayments against the December 2016 liability.
Henry Edwards33 said:Ever since they patched that sales tax form, everyone seems to be hitting the exact same wall. 🤣
Here’s the error message popping up on my screen:
The total purchase value for this period shows an increase compared to last year, yet there are no recorded purchase invoices for the current filing year. This form is invalid.
Olivia Cruz86 said:Ugh, okay, now I’ve got two different numbers staring me in the face... and honestly? I have zero clue which specific payments I should actually be logging here...
amberbadger17 said:Oh, just goooooo ahead...
amberbadger17 said:I just record everything that hit account 1430 by December 31st. Simple as that.
🙂
Brenda Chase3 said:So, I’m looking at a situation involving a sole proprietor who essentially operates as their own corporation. Throughout the year, they were paying themselves distributions from those profits. Every cent of tax and surcharge was paid upfront at the moment of distribution, and everything was properly documented via the standard payroll reporting forms. Now, here is where I am getting stuck: when it comes time to file the annual tax return, am I actually required to report that capital gain income? The issue is that once I input it under section 4.4.1, it spikes the total annual taxable income. This, in turn, triggers an additional layer of tax and surcharges in the calculation. To me, this feels like a mathematical error because the taxes on that specific income have already been settled in full. Perhaps there is another field or a specific box in the filing where I need to indicate that these taxes were already withheld? I am feeling a bit lost here. Any guidance would be greatly appreciated.
Brenda Chase3 said:So, I’m looking at a situation involving a sole proprietor who essentially operates as their own corporation. Throughout the year, they were paying themselves distributions from those profits. Every cent of tax and surcharge was paid upfront at the moment of distribution, and everything was properly documented via the standard payroll reporting forms. Now, here is where I am getting stuck: when it comes time to file the annual tax return, am I actually required to report that capital gain income? The issue is that once I input it under section 4.4.1, it spikes the total annual taxable income. This, in turn, triggers an additional layer of tax and surcharges in the calculation. To me, this feels like a mathematical error because the taxes on that specific income have already been settled in full. Perhaps there is another field or a specific box in the filing where I need to indicate that these taxes were already withheld? I am feeling a bit lost here. Any guidance would be greatly appreciated.
Henry Edwards33 said:Ever since they patched that sales tax form, everyone seems to be hitting the exact same wall. 🤣
Here’s the error message popping up on my screen:
The total purchase value for this period shows an increase compared to last year, yet there are no recorded purchase invoices for the current filing year. This form is invalid.
Brenda Chase3 said:I'll provide an answer here just in case anyone else runs into this situation. As a sole proprietor, you aren't required to report those profit distributions or dividends as separate income items. You are obligated to report your earnings from self-employment and any other professional activities, but these specific payouts don't fall into that mandatory category. You certainly *can* list them, but it isn't a requirement. To save everyone some time, there is a full breakdown explaining how this works in the link below.
http://www.accountingusa.com/tax-guides/sole-proprietor-distributions...6k/?section=34
Jessica Gonzalez30 said:It's been the standard rule for quite some time now: income from self-employment is the primary type of revenue that absolutely has to be listed on the tax forms. If you start including other types of income there, then suddenly you're obligated to report every single penny you receive.
I really think we should avoid any more confusion regarding what actually belongs on the forms and what doesn't 😉
Henry Edwards33;62649971 said:☕
🙂
Look, I’m actually jealous as hell, mostly because I have zero clue what to do with this trash form, so I figured I'd ask you guys:
I’ve got two entities that basically hit zero by the end of 2016.
The first one bottomed out by the end of June, and the second one hit the floor right at the end of the year.
Both have a rate of 25, but for the first one, I changed it to 12.5 after reading some post on an accounting forum.
After I did that, I double-checked everything and—voila'—the form looks correct.
Now I'm just sitting here stressing over whether I should actually hit send.
🐔
bubamara1205;62661929 said:Henry Edwards33 said:Don't let jealousy get the better of you☕
🙂
That's how it works🙂
From what I saw last year, I ran into the exact same thing. Everything went through without anyone from the IRS breathing down my neck. Mathematically speaking, it’s all sound—it doesn't really matter if you take 12 months at 12.5% or 6 months at 25%. It adds up to the same amount in the end, so there isn't much to lose sleep over. ☕
Arthur Lopez3 said:I run a small business here in the States—a sole proprietorship, income tax filer, and VAT registered—focused entirely on raising sheep for milk production. I don't sell the sheep themselves.
As of December 31, 2016, I valued my flock at fair market value. Using a 20% depreciation rate, I have an 80% undepreciated balance remaining.
Now, I need to know how to handle the books for December 31, 2017.
Is it possible for the fair market value to be higher or lower than the undepreciated amount from the previous year?
Can anyone offer some guidance on this?
placidlynx92 said:I dealt with a situation just like this about a decade ago—spent way too much time digging through tax codes—and I ended up no smarter for my efforts. In the end, I just depreciated everything annually like any other fixed asset. Honestly, trying to track every single sheep entering or leaving the core flock would be a logistical nightmare. For instance, a lamb has one price today, then it becomes a breeding ewe next year and its value jumps, then it fluctuates again, and don't even get me started on what happens if the whole flock gets sick 🥱 or something similar... it's a headache. Besides, for small business owners, you typically follow standard depreciation schedules anyway, so why overcomplicate it? Most ranchers are already part of the USDA tracking systems where every head of livestock is logged chronologically; when a sale actually happens, the fair market value is clearly established by the data. It's that simple. 🕺
If you figure it out, please let me know—I still can't sleep soundly, and I certainly don't fall asleep by counting sheep. 😬
Brandon Jackson4 said:1. Does anyone know if we need to file the OPZ STAT—that statistical report for overdue receivables—this year? I submitted it last year, but there were rumors they might scrap it... No one on the forums seems to be mentioning it lately.
2. Back in 2016, I took out a loan from myself. Where does that actually land on the PPI form?
Does it go under V 2.3 (loan proceeds), or should it be in V 2.5 (other non-taxable receipts)?
Thanks for the help...
