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Tax Season soon - how are you handling it?

Discussion in 'Business & Tax Advice' started by mandude, Jan 18, 2010.

  1. mandude

    mandude Jr. VIP Jr. VIP Premium Member

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    I only filed for an LLC this past year, and don't know shit about it or laws I realize. Apparently I should be paying taxes quarterly? I thought just annually.
    Anyway, how are you handling it? Filing your own taxes? H&R Block? Private CPA? I am thinking of CPA but afraid of how much that will cost.

    ..also, random tax question. Taxes are based on your end profit, right? as in if I made $55k, then reinvested $55k, and have (just an example) 10 bucks in my bank, I dont owe like $20k still right? ... hope not lol
     
  2. sampo1time

    sampo1time Regular Member

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    I'm in the same boat as you dude. I have a a about $50,000 in advertising receipts I'm thinking I get to write all that off. If not I think I'll be owing a shit load of taxes.

    Also does a network still send you a 1099 if they banned you? I got banned from a few and I don't know how much I made from each. It's going to be a total mess.
    Posted via Mobile Device
     
  3. chuckieballz

    chuckieballz Newbie

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    Yeah, you're supposed to pay taxes every quarter. I don't because it's a hassle, and I pay a penalty of a couple hundred dollars year because of that. It's worth it to me because I'm lazy.

    And taxes in a nutshell go like this. Subtract your gross profits minus your expenses, the total is your net "taxable income". That's what you get taxed on. If you make 50,000 and have receipts for 30,000 in expenses, you made $20,000... that's what you get taxed on.

    Some people make the mistake of thinking "Oh I made $50,000 so I'll probably owe like $10,000 in taxes, but I have $20,000 in expenses so I can subtract that from the $10,000 I owe and not pay taxes" That's not how it works...

    (Oh, and I'm not a CPA)
     
  4. JohnG

    JohnG Junior Member

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    Get yourself an accountant, thats the best advice I can give you. You already got the LLC which is good, but if you want your taxes done right so you don't have to worry about audits get yourself an accountant, and stay away from H&R Block. They are fine for personal taxes but they royally screw up on business taxes. I recommend finding a good private CPA.

    When it comes tax time I just give him the bank statements and let him deal with it, I don't have to do anything but sign some paperwork and mail a check.

    Also watch out for not paying the quarterlys, its a couple hundred if you don't owe that much, if you pay alot in taxes those penaltys really add up quick on not paying the quarterlys.

    As to the how much a CPA will cost, you should be able to get your year end taxes done for under $1k even with a good CPA. You can just make some calls and ask how much they charge to do your year end taxes for an LLC, they should be able to give you a decent estimate over the phone.
     
    Last edited: Jan 19, 2010
  5. suga051982

    suga051982 Regular Member

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    I do my taxes myself. I pay $15 to file them online. I get audit support and everything. I would think that it depends on your situation. I am a single mom of 3 children under 10. I made about $30k last year, expenses ran me about $6k. Taxable income was $24k. I get a refund of $8k (state & feds).

    I am not a CPA, but I have done other people's taxes and no 1 has ever had a problem. If you would like some help, PM me and I will do my best.

    Cheers
     
  6. dnreg

    dnreg Jr. VIP Jr. VIP Premium Member

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    My biggest advice in this thread is for you guys to DEFINITELY pay your quarterly taxes if you're doing over $5k/month or so. The fees do add up. I neglected to pay quarterly taxes last year (my own ignorance, I just didn't know I was supposed to) on about 300k and had high $x,xxx in fines.
     
  7. mandude

    mandude Jr. VIP Jr. VIP Premium Member

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    I think I am royally screwed for taxes. I have no idea what I am doing.
    ANyone else here buy and sell (flip) websites/companies for huge profits?
    I sold a company for $50k, then used $20k and $12k to buy 2 new companies. That would leave me with $18k. But I dont see how you deduct the cost of buying a business as an expense, so currently I owe (according to turbotax) about $20k. (I dont have anywhere near that). Anyone know how to help? would be great.
     
  8. dnreg

    dnreg Jr. VIP Jr. VIP Premium Member

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    Go spend $1k (also tax deductible) on an accountant, and not worry about it.
     
  9. khubbard

    khubbard Newbie

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    Here's a resource that may be helpful: http://www.usataxaid.com/are-you-ready-for-a-new-tax-advisor/
     
  10. loclhero

    loclhero Supreme Member

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    Iwill never give another fucking dime to some douchebag accountant. They are all fuckers. You still have to get all your records together, keep them orderly all year long, and then all they do is plug all your info into some software anyway. Been doing mine with Turbotax for years.

    But dnreg is right, pay your quarterlies. Jeez, it's not brain surgery and you'll be thankful come April 15
     
  11. juice

    juice Regular Member

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    Here are the estimated tax payments due dates:

    • April 15th,
    • June 15th,
    • September 15th, and
    • January 15th
    The goal is to pay 90% of the taxes owed throughout the year with quarterly payments. ATTENTION: This is only if you don't have any federal withholding to cover your taxes owed.
    However, the penalty is not that bad, unless you really make a lot of money!
    Here is an example i took from a website:
    Example: You made estimated tax payments of $4,000 per quarter, thinking that $16,000 would be enough to cover 90% of your tax liability in a year when the prior year safe harbor wasn't available. It turned out that $18,000 was required to cover 90% of your tax liability, so you should have paid an additional $500 per quarter. The amount of your underpayment is $500 for the period from April 15 to June 15, $1,000 from June 15 to September 15, $1,500 until January 15, and $2,000 until April 15 when you filed your return with your payment. The underpayment penalty at the 8% rate in this situation would be roughly $107.
    Hope this helps.