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Yikes, this is not easy. I quit my job at the end of 2006 to go on my own. I made it through the year and tried really hard to keep all of my records straight. I should say, that I am usually terrible with receipts, records, etc., but manage to get by. I use an accountant, but it has been easy in the past to give end of year tax info from previous employers.
This year, I have to go through all my records add everything up, subtract expenses and reimbursements for equipment that I have purchased and so on. I have received all but one 1099 and even though I tried to get my numbers to my accountant, found out I gave him the wrong info. At the moment, I am redoing my numbers so I can get the right info to him. I am missing about $500 worth of invoices for one co. Their 1099 doesn't match my number. Now I get to drive an hour round trip, so I can rifle through their file on me and find the missing invoice/s. Anyway, just frustrated (at myself) and needed to vent. I haven't started my 2008 tax folder yet ![]()
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Detached Member
Join Date: May 2003
Location: southern California
Posts: 26,964
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Did yah do your quarterly filings on your social security?
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Hugh |
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Nope. My accountant suggested that I start a savings account (last year) and put money into it throughout the year. Well, I never really had the $500 to be able to open the account - well, I guess I could've saved up, but did not. Too late now. My dad said don't worry about it until end of year. I think I am going to just make in into the lowest tax bracket, so it shouldn't be that bad - I hope
![]() I'm a beer drinker, but I feel like buying a 5th of whiskey right now. Last time I had a business, it was with a partner and he took care of the all things tax related.
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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I'm with Bill
Join Date: Feb 2005
Location: Jensen Beach, FL
Posts: 13,028
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I let my CPA do it all. He just points to lines, tells me to sign them and I go my happy way.
I have 12 folders in my desk at work, 1 for each month, when my bank statements come in each month I put them in those folders, along with every receipt, and a copy of every check I write and give it to him. I used to try to keep my own books and gave up. This way at the end of the year he just gives me a list of what he needs from me for my personal return and I get it over to him. I wish I had done this years ago it has made my life so much easier.
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Detached Member
Join Date: May 2003
Location: southern California
Posts: 26,964
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Dave, I'm not up on it totally, but you may want to think about that 1/5 of whiskey. The IRS is a very, very stingy pimp that you gotta give your money to. If you owe all your social security from last year, I think they can fine you. Same with income taxes. If you haven't paid in something like 90% of what you owe by the end of the year, they fine you.
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Hugh |
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I think I should at least start a "business" checking account even though I work out of my house. I have to change my ways to some extent this year. I should really try and open a savings account soon as well.
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Information Junky
Join Date: Mar 2001
Location: an island, upper left coast, USA
Posts: 73,189
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IIRC if it's under $600 (from one gig) a 1099 isn't needed. If you report more than you have in 1099's, I expect that the IRS will be fine with it.
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Everyone you meet knows something you don't. - - - and a whole bunch of crap that is wrong. Disclaimer: the above was 2¢ worth. More information is available as my professional opinion, which is provided for an exorbitant fee. ![]() |
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Hugh, I would hope that my CPA would have mentioned something about SS last year, but as far as income, I don't think so. My CPA only suggested putting money away over the year, so if I do owe taxes, I would be covered. My dad (ex tax/bus lawyer), said forget the savings account, you'll probably end up not owing any income anyway. At least I know that I owe on capital gains, fuch!
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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Information Junky
Join Date: Mar 2001
Location: an island, upper left coast, USA
Posts: 73,189
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I'll add that it is not unusual for new business to have little or negative net profit for the first couple years. (read: you might expect that your taxes would be low, or even zero.)
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Everyone you meet knows something you don't. - - - and a whole bunch of crap that is wrong. Disclaimer: the above was 2¢ worth. More information is available as my professional opinion, which is provided for an exorbitant fee. ![]() Last edited by island911; 02-19-2008 at 05:44 PM.. |
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Quote:
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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Quickbooks is your friend. Learn it & use it.
I just did my year end books and give it to my CPA on a CD. It makes his job easier and saves me $$$.
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Registered
Join Date: Apr 2002
Location: NoCal
Posts: 2,416
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slodave,
I own a tiny little side business that I run out of my house (it is not my main means of support), and I would strongly recommend getting a business account. I would also suggest getting a business accounting program and learn to use it. I picked up a cheapie program (Simply Accounting) a few years ago and use it for invoicing, customer info, etc. It also runs reports for me at the end of the year, which makes taxes much easier. Keeping your records separate makes life much easier, and the paper trail will undoubtedly help if you decide to expand and need a SBA loan. Jim One more thing: If you have an SBA in your area, sign up with them. They offer free advice, and also offer inexpensive classes in areas such as accounting, etc. http://www.sba.gov/ |
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Zombie
Join Date: Apr 2006
Location: Greenwood, IN
Posts: 1,408
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Ive been self employed for the past 7 years. Honestly watch your Ps and Qs. Its way too easy to get into serious tax trouble when your a small business. The tax laws are written to shelter big business.
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The Pragmatist |
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Quote:
![]() jim72911t: Quickbooks would be my best bet ^^. Yes, it's time to open another bank account, I agree with keeping expenses separate. Last year proved that my little "business" was viable and I hope to at least double what I did last year.
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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Detached Member
Join Date: May 2003
Location: southern California
Posts: 26,964
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If you actually make an income, write off as much as you can, including phone, portion of rent, portion of utilities, etc. I'm not an accountant or tax guy but have been told don't take the office deduction.
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Hugh |
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Quote:
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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Quote:
+1 on quickbooks, it saved my life
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She was the kindest person I ever met |
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Detached Member
Join Date: May 2003
Location: southern California
Posts: 26,964
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Dave, until I joined Disney, I worked as a consultant and I wrote off books I read and movies that I saw, because I might be involved in a movie based on that book, or I might use some of the technique/ information that I saw in a movie with a studio client. And to tell the truth, I did use some of that info!
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Hugh |
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I can almost give my info to my CPA! One account I have does not match up with the 1099 they sent, so I have a little detective work to do. I owe SS and some capitol gains, but maybe I'll be even on federal/state income, with my expenses and other deductions. I guess I'm also eligible for the $300.- incentive due in May/June .
![]() Last year was rough, I'm glad that the calendar year is over and that the 07 taxes ordeal is almost over too. I need to put 07 behind me. Thanks again for taking the time to read/respond. Tomorrow night I will start getting my Jan/Feb invoices squared away and stop procrastinating the admin part of my bidnezz. Dave
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Make sure to check out my balls in the Pelican Parts Catalog! 917 inspired shift knobs. '84 Targa - Arena Red - AX #104 '07 Toyota Camry Hybrid - Yes, I'm that guy... '01 Toyota Corolla - Urban Camouflage - SOLD |
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Quickbooks, start your data entry for 2008 and stay current. Next January you will be laughing your ass off
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She was the kindest person I ever met |
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