I own a home based business in North Carolina - promotional
Hi Pearl: I own a home based business in North Carolina - promotional products and apparel. Customers usually email me what they need and I order from suppliers. Most of my orders are from South Carolina clients. When filing taxes, do I have to add all of the income made in sales, including SC, or just NC? Also, since I don't have nexus in SC, do I collect sales tax from them? Thank you for your help!JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: No, just curious because my account said one thing and I heard other things from other accountants...
JD, MBA, CFP, CRPS
I bought 2 houses in 2015, rehabbed them and flipped them in
I bought 2 houses in 2015, rehabbed them and flipped them in 2016. I file form 1120S for my rental properties and file form 8825 to report rental income and expenses. I am not certain how to report this on form 1120S. In 2015 I only had expenses on the two houses.JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?Customer: One of the houses is in the corporation name and the other is in my personal name.
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.
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?
Sr Financial & Tax Consultant
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?
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.
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.
Certified Public Accountant