How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask USTaxAdvising Your Own Question

USTaxAdvising
USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1090
Experience:  US Taxation specialist.
58296935
Type Your Tax Question Here...
USTaxAdvising is online now
A new question is answered every 9 seconds

Los Angeles City Business tax question regarding back tax.

Resolved Question:

Los Angeles City Business tax question regarding back tax. The column for 'Basis for tax', Column D, is based on gross income from last year 2012. To compute this, I multiply my gross income by the tax rate, then insert it into Column F.

But then the column for 'back tax', Column G, applies to businesses newly established in 2012; I am a newly established business as of 2012. And to calculate this, to simply copy the tax computation in column F to Column G.

Does that mean, I have to pay taxes twice for 2012?
Submitted: 1 year ago.
Category: Tax
Expert:  USTaxAdvising replied 1 year ago.

USTaxAdvising :

Hello, Thank you for using justanswer. I can assist you with your questions today.

Customer:

Hello

USTaxAdvising :

No it does not mean that you have to pay taxes on it twice for 2012.

USTaxAdvising :

Basically the amount of tax will be the same for both year 1 and year 2 as taxable income period is the same.

USTaxAdvising :

Here is an excerpt from the LA City Dep of Finance - "


When a new activity subject to tax is started it is required that the minimum tax be paid with the application. At the end of the first business tax calendar year or when the activity is terminated during the first calendar year of such activity, it is required that a statement of the entire first calendar year's gross receipts be filed and payment made of any tax due in excess of that paid at the time of the application. The tax for the first and second calendar years are each measured by the gross receipts of the first calendar year. Consequently, the tax for the first and second calendar year is always in the same amount."

Customer:

Okay. So as I understand it, this tax renewal form I'm currently filing for is actually for this year...2013. And the back tax column, actually applies to 2012. Is this correct?

USTaxAdvising :

Basically yes.

Customer:

So this is UNLIKE federal and state income tax, where taxes are calculated based on last year's earnings, correct? And that I'm paying for this year in advance, based on last year...in this case, 'back tax'. Do I have this right?

USTaxAdvising :

So this is UNLIKE federal and state income tax, where taxes are calculated based on last year's earnings, correct? - This is LIKE federal and state income tax. The tax is computed using the prior year's gross receipts. Only in the first and secon years will both numbers be the same for the amount of gross receipts and tax.

Customer:

Okay, according to lacity finance website my basis for tax are "gross receipts" from the previous calendar year. Which makes sense. Where it is confusing is the back tax, because that's also based on the previous calendar year...at least for newly formed businesses in 2012.

Customer:

and...

USTaxAdvising :

Yes agreed it is confusing, I haven't worked with the Form and license for a few years now so I am looking up a few things as well to help make more sense of it.

USTaxAdvising :

Do you know if you qualifying for any "new business" or "small business" exceptions?

Customer:

...since taxes will be the same for year 1 and year 2, the way it's calculated is that I'm calculating year 2 first, and copying that number to year 1 'back tax' column. I would think that would be in reverse, where I calculate year 1 first, and just copy that over to year 2?

Customer:

Yes, there is a new business exception, but it had elapsed on Feb 28. Growing pains

USTaxAdvising :

Ah ha.Yes....

Customer:

This business tax renewal form was due on Feb 28. I didn't realize that the business tax renewal form is also the same form to declare taxes.

USTaxAdvising :

I see.

USTaxAdvising :

Agreed the back tax is wierd but that is the way they have set it up. It isn't double taxation it's just using the same figures for years 1 and 2. It sounds to me like you are doing it correctly.

Customer:

so the long and short of it, it sounds like I need to place an amount on the 'back tax' column. Here are the instructions LA City provides http://finance.lacity.org/form/Form%201000A.pdf and it's III D the 'basis for tax' and III G 'back tax' that seem to be the same thing.

Customer:

I just found the answer...http://finance.lacity.org/content/BusinessTaxInformationFAQ.htm under the question: Why does it seem like I am being 'double taxed' on my renewals?

USTaxAdvising :

Agreed yes you need to place an amount in the 'back tax' column

Customer:

...It's basically what you said. ha. Thank you very much for your help!

USTaxAdvising :

Can you send me the link to the worksheet you are using?

USTaxAdvising :

I can't find the worksheet online....no problem. :)

Customer:

Thank you again. I'll be sure to give you an excellent rating

USTaxAdvising :

Thanks!

USTaxAdvising, CPA
Category: Tax
Satisfied Customers: 1090
Experience: US Taxation specialist.
USTaxAdvising and 4 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.