hello, my name is XXXXX XXXXX I'll be happy to walk you through the process
Thank you. Did you read and/or understand my question?
1st off everything begins with "gross" and then all expenses, fees, salaries etc are deducted within sch C
I declared the full 5500 on the sales tax together with my usual small amount from my mini-mall sales. But I only received the $1650 from the sale less advertizing and my friends' payments.
so gross is full sale amount plus mini-mall sales
is the amount I gave to the family of the estate an actual expense?
yes and yes amts pd to family is a deduction and a 1099 is only required if more then 600
yes, full amt (gross) then deduct mini-mall fees, sales tax, the 200 per, etc
I'm using turbo tax and it asked if I had issued 1099s and I said no. Will it give me the option of listing the payments?
Should I list both sources of income separately?
no combine all
So both in comes are gross. Sales tax and mall fees and amount I paid to the customer etc are expenses. If the amount I paid to my friends comes to 750. is that a problem being over $600?
not if less than 600 per person - fyi...a deduction for you equals potentially taxable income to you helpers and remember to pay the state the sales tax collected
and yes that right all gross less all exps including monies paid to helpers
I have paid the sales tax. My helpers were all social security people and I hired them to help them out. I would rather not deduct them and pay income tax on the money than get them into trouble. I have one other unrelated question. Do I need to sign off and on again or can I ask you? You have helped me immeasurably so far. If I asked you the question and you couldn't point me in the right direction, just say so - it's fine.
yes if i can - go ahead and ask
oh boy, must be a long one
We filed bankruptcy in 2006. We hired a CPA (nameless of course) who settled with the IRS for over twice as much as we owed. We were terrified and just said OK and signed the papers. We're making monthly payments which uncannily take exactly every spare penny. He says it a;; dies after ten years which doesn't make sense because every monthly fine and interest that accrues each seems to have its own ten year life. All things considered, I have been considering gathering everything up and going to talk to the IRS myself. Is it a stupid idea?
No, I'd suggest speaking to another CPA or even better a tax attorney/CPA of which there are many. They usually charge 250 to seat down and discuss general situation and then it would be up to you if you wanted to hire them to assist you further.
Thank you. You have been great. I'll go now. That's exactly what I will do - in another town so I don't get anyone into trouble. Thank you again.