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Recent Gross Receipt questions

I was wondering about my self employment. I own a face

Hello, I was wondering about my self employment. I own a face painting business. The business is under a DBA and trade name, but not any structure like LLC. When I do a job I use my SSN as my business number. My question deals with square and payments through this.Square states,"All credit card processing companies, including Square, are required by the IRS to report the earnings of those merchants who process over $20,000 and over 200 credit card payments (cash excluded) per calendar year before January 31."-referencehttps://squareup.com/help/us/en/article/5048-square-tax-reporting-and-form-1099-kMy square transactions are credit cards and I made $4500 this year on square on it.I know technically you are to report everything, but I was just wondering since square makes it sound like it stays out of the IRS way.

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PDtax

Owner

Master's Degree

7,000 satisfied customers
In making a 481a adjustment for an S Corp, how do you

in making a 481a adjustment for an S Corp, how do you account for difference in retained earnings?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
This question is for jgordosea, please send to him. Thank

This question is for jgordosea, please send to him. Thank you.Hello, Thank you for your help in the past. I have some new questions for 2015 1120 S (for my S -Corp) return and related 1040 personal return.FYI: Neither return is filed yet still on extensions.1120 S Question#1.) I had a bank deposit error in 2015 that was my mistake. It was a math error in calculation. The deposit going in the bank was $600 more than what it actually should have been. The bank credited it to my account as it was written then a few days later they caught the error an deducted the $600 from my account. On my bank statement it shows the larger deposit as income and a seperate deduction of $600 as an expense, that is how I had to enter it also in my book keeping softwear Quicken to get the statement to balance. my question is how do I put this on the 1120 S tax return or do I need to show it at all since it a wash? If I have to show it on the 1120S return I thought the deposit would go on line 1 for Gross Receipts and the deducted amount of $600 would be an expense on line 19, but I'm not sure what to title it on the line 19 expenses. Would it be ok to call Corrected Bank Deposit. Also should I attach an explanation with the tax return.1120S Question#2.) The S Corp took a short term loan out via a credit card. The loan proceeds were deposited into the S Corp bank account. In a couple of months the S Corp repaid the loan in full. I haven't borrowed working capital monies like this in several years. I know the loan bases is not income and the principal repayment is not an expense. The interest paid is an expense. How do I show this on the 1120 S Corp return? Do I show the interest paid on line 13 and then just show the loan bases on the sch L balance sheet as a short term loan paid off in the same year? If so where & how does it go on the Sch L Balance sheet ? Or am I getting this all wrong?

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Stephen G.

Sr Financial & Tax Consultant

Bachelor's Degree

9,026 satisfied customers
I am planning to start an e-bay business selling books. I

I am planning to start an e-bay business selling books. I have about 2000 books as initial inventory, which I have accumulated over the years. The cost of the books is roughly 20k. Say I would only sell books the first year for $2500. In addition to other business expenses would I also be able to deduct the remaining inventory of books (18k) as a business expense in my first year of operation for IRS purposes?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
I am helping a friend close their business and file the

I am helping a friend close their business and file the final two years tax returns. Over the years the owners lent the business several hundred thousand dollars. The loans were never subordinated with a note payable. In my mind the loans should be classified as additional paid in capital.JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: The shareholders sold a building they owned personally and have a large capital gain in year 2. If the loan is considered paid in capital and the business is closed in year 2 we could offset some of the gain from the building sale with the paid in capital loss from the business closing.

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Mark Taylor

Certified Public Accountant

Masters

1,296 satisfied customers
I bought a house and fixed it up and then sold it. Where

I bought a house and fixed it up and then sold it. Where does the house purchase and the house sale go on the chart of accounts, P&L and Balance Sheet?

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Dr. Fiona Chen

President

Ph.D.

578 satisfied customers
I am an EA and am expanding my practice to include payroll

I am an EA and am expanding my practice to include payroll and bookkeeping. I am trying to figure out the best way to inexpensively service my client. I have a number of 1-2 man S Corps who see the tax advantages of Incorp, but now need to do better bookkeeping and payroll. I was told Intuit has a great inexpensive service but did not really see the prcing for it. I heard as an accountant user (I am a pro advisor) my part if very inexpensive. But what does the client have to pay if not QB already?? Also, my bookkeeper has been extolling on the advantages of Zero on line. My clients need little bookkeeping and the simplest of payrolls. Can you tell me how it works and the best way to charge the client? I can handle charging for my services, but I am not sure what the options are on QBs and Zero, not to mention on line vs desktop.

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DanielleCPA

Certified Public Accountant

Bachelor's Degree

964 satisfied customers
We are a wife and husband owned company with only ourselves

Hello, We are a wife and husband owned company with only ourselves as employees. We live and do business in the state of Florida. The FL state audited our S-Corp and reclassified a good portion of our distributions ($46,631.80) as salary. Please view questions:1. I am about to send in the 941x and 940x to the IRS. I saw mention of a 941-B does that apply to us?2. I believe I also have to revise W-2s? Do I need to revise W-3?3. Do I need to or should I amend the 1120s and 1040?? If I amend these will we pay less on those to counter balance the additional amount that we will now owe?4. Since we were audited by State and not Federal does this help us any in requesting any late fees/penalties to be waived??5. At this time when I submit the forms we can not pay all that we will owe. If I make a partial payment will the IRS then bill us?6. Finally someone mentioned that just because State reclassified and we owed them zero that we do not have to revise Federal until they would audit.. that seems incorrect? Am I correct?We are in-between accountants right now.. however I do know how to amend all forms and file all taxes.Thank you for your assistance!! Michelle

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Mark Taylor

Certified Public Accountant

Masters

1,296 satisfied customers
I am a retired paralegal. My former boss still lives in New

I am a retired paralegal. My former boss still lives in New Mexico, while I am now living in South Carolina. She would like me to do so freelance work for her -- answering phones, taking messages, etc. Do I have to collect SC gross receipts tax on my work? Barbara Holley

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,236 satisfied customers
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