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Thread: Tax time
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01-31-2020, 11:11 PM #26
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02-17-2020, 12:38 PM #27
Got a 1099 in the mail last week. First thought was, "Hey, only two weeks late, progress!" But, then I looked at the amount, which was only about half of what I know she made last year. She texts el jefe asking if there's another 1099 coming and he responds, "I don't think so, why?" Holy amateur hour.
Now that the ranting's done, an actual tax question: She launders the studio's sweaty towels at home a couple times per week. Our washer and dryer are over a decade old. They currently seem to work fine, but multiple big loads of towels per week are probably hard on them. How out of bounds would it be to upgrade to newer/nicer machines and write that off as a "business" expense?
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02-17-2020, 01:14 PM #28
I am a cpa/dentist with a fairly complex return, just cause I play a lot of (cpa) games. Truthfully I have ALLWAYS done my individual return in the cheepest taxcut HR block product that runs about $20 ($10 with earlybird discount.) with nbo problems. It will do your Sch C and really anything else you need, just say no the up sale, and you can do the state by hand. Also do a family limited pthsp and a few S corps out of the turbotax business software for $100 works fine, but you only need this when you have a separate entity.
BTW if you have a business generating, i dunno, a decent amount as mentioned above, it makes an awful lot of sense to incorp or LLC, single owner, AND ELECT S CORP STATUS. can save at least a couple grand up to 10k or so if you know what you are doing. Throw some child ownership in there and you are really cooking with gas."Can't you see..."
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02-17-2020, 01:19 PM #29
My $.02 that would work perfectly fine with low (audit) risk. My $.02 I'd set them up as capital asset, one amount for both, with the description "laundry equipment" or better "gym equipment" and you can either bonus depreciate them 100% in year one, or sec. 179. I've come around to the latter since states seem to recognize 179 more often than bonus, but you'll want to check your state. if your state accepts 100% bonus then depreciating inside the entity is better IMO. simpler. on the 1099 dude. Don't look a gift horse in the mouth. I would document that you asked a question and move on.
"Can't you see..."
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02-17-2020, 01:22 PM #30
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02-17-2020, 02:07 PM #31
Oh trust me, if they're really only going to report half her income to the IRS I'm stoked. My worry is that I'll file with what I have now, then they'll realize their mistake at some later time, report her full income, and may or may not even tell her about it. Best case I'm wasting time filing amended returns, worst case the IRS thinks I've willfully committed tax fraud.
Because besides the owner having no idea how to properly run a business, she likes working there a lot for several reasons. New W/D for the "business" isn't a bad fringe benefit, either.
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02-18-2020, 12:20 AM #32
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02-18-2020, 12:28 AM #33
...and the miles between the two places she's doing business, yes?
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02-18-2020, 12:40 AM #34
And transport of laundry, folding services, storage fees, toxic waste dumpage, etc.
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02-18-2020, 07:13 AM #35AF
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02-18-2020, 08:15 AM #36"fuck off you asshat gaper shit for brains fucktard wanker." - Jesus Christ
"She was tossing her bean salad with the vigor of a Drunken Pop princess so I walked out of the corner and said.... "need a hand?"" - Odin
"everybody's got their hooks into you, fuck em....forge on motherfuckers, drag all those bitches across the goal line with you." - (not so) ill-advised strategy
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02-18-2020, 08:45 AM #37
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02-18-2020, 08:52 AM #38
All you have to do is accelerate depreciation on your equipment, give a stock option deal to your employees, and set up shop in the Cayman's. Easy eh
Company- U.S. Income- Federal Tax- Effective Tax Rate
Amazon.com $10,835 –129 –1%
Delta Air Lines $5,073 –187 –4%
Chevron $4,547 –181 –4%
General Motors $4,320 –104 –2%
EOG Resources $4,067 –304 –7%
Occidental Petroleum $3,379 –23 –1%
Honeywell International $2,830 –21 –1%
Deere $2,152 –268 –12%
American Electric Power $1,943 –32 –2%
Principal Financial $1,641 –49 –3%
FirstEnergy $1,495 –16 –1%
Prudential Financial $1,440 –346 –24%
Xcel Energy $1,434 –34 –2%
Devon Energy $1,297 –14 –1%
DTE Energy $1,215 –17 –1%
Halliburton $1,082 –19 –2%
Netflix $856 –22 –3%
Whirlpool $717 –70 –10%
Eli Lilly $598 –54 –9%
IBM $500 –342 –68%
Goodyear Tire & Rubber $440 –15 –3%
Penske Automotive Group $393 –16 –4%
Aramark $315 –48 –15%
AECOM Technology $238 –122 –51%
Tech Data $203 –10 –5%
Performance Food Group $192 –9 –4%
Arrow Electronics $167 –12 –7%
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02-18-2020, 11:28 AM #39
This assumes a basic level of competency and fucks given on their end. But, she found out yesterday that they switched their business entity halfway through the year (such a change would have been obvious to me when her DDs came through, except they were still paying her through Venmo at the time). She'll be getting a second 1099 from the previous entity. As to when, "we're working on it."
I should write up a hospital-esque chargemaster. Detergent - $25/load; dryer sheets - $75/ea; and so on.
3.6 miles RT.
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02-18-2020, 12:20 PM #40
Oh man those morons.
How many contract employees other than your wife do they have? I think the fine is $50 per late 1099.Live Free or Die
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02-18-2020, 12:31 PM #41
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02-18-2020, 12:42 PM #42
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02-18-2020, 12:44 PM #43
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02-18-2020, 04:12 PM #44
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02-18-2020, 05:09 PM #45
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02-18-2020, 05:31 PM #46
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02-19-2020, 07:13 AM #47AF
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Here is what the Tax Foundation says about the number of filers who itemize. I think the important thing to note is pre tax reform 30% of filers itemized. I am not saying it is not a significant drop but 70% of filers never itemized.
We estimate about 13.7 percent of taxpayers will itemize in 2019. This is more than 17 percentage points lower than it would have been in 2019 under pre-TCJA law.
I understand the angst about the limit on state and local tax deductions. States that do not have an income tax (that is not me) have been getting the short end of the stick for years. There was a time that filers could take a sales tax deduction based on your income and the amount of sales tax (%) that your state charged. The states that do not have income tax fund their operations somehow, my guess is through other taxes. States that charge high sales tax deny their residents an opportunity to take a deduction.
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02-19-2020, 07:36 AM #48
^ a lot of the states did not increase their standard deduction the way federal did. So there is an arbitrage where Itemized, while lower than standard on fed, saves aggregate tax. But, yeah, on the whole, itemized are a thing of the past. Only exception I'm seeing are the property contribution trusts.
"Can't you see..."
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02-19-2020, 10:48 AM #49
Residents of states without income tax have not been getting the short end of the stick. True--they don't get to deduct the tax from their income, but they don't have to pay the tax in the first place, which saves them a lot more money than the deduction does. This whole thing about the high tax states taking advantage of the low tax states is a bullshit pseudopopulist argument dreamed up by the Republicans to help justify their tax bill and to divert attention from the giveaway to the wealthy.
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02-19-2020, 11:49 AM #50
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