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Recent Net Income questions

I've been running a small detailing company time now. I

I've been running a small detailing company for some time now. I started it as a part time thing but it has grown to be my full time job. Since I started it as part time i really never looked into creating a separate business account and did not keep track of cash income or expenses. Im trying to get my books in order now and i need help. I have started using quickbooks Self Employed and it has begun to paint a financial picture for me. Most of the information I have is from my online banking so it does not show my cash flow. I'm confused and concerned as to how and if I should report that without having kept record of it. Also since I am self employed I'm having a hard time figuring out what counts as an expense. For example, I have a shop location so I pay monthly for my lease, but should I also include my house rent? Or is that something that should be accounted for in my budget from my net income?

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TaxRobin

Vocational, Technical or Trade School

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As an independent consultant who gets paid in lump sums at

As an independent consultant who gets paid in lump sums at various different times of the year, and at times am working on generating leads, sometimes months at a time, are there any issues taking the total year income and dividing it up over the 12 months of the year as monthly income when applying for a credit card or a mortgage? Typically these applications have no fields for yearly income, but simply request 'monthly' income?

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Lev

Retired

Bachelor's Degree Equivalent

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In 2015 my wife reported about 45k in earnings and I

In 2015 my wife reported about 45k in earnings and I reported maybe 40k in earnings. We file jointly. We own our own business and LLC partnership. I want to clarify something because she is concerned. Since we would like to buy a home in Arizona in the coming years my wife is concerned about our tax returns and income. This year we are now living offshore in the cayman islands and taking advantage of the foreign earned income tax exclusion and deduction through the physical presence test. My earnings will be in excess of 110k and we'll still continue to file jointly. Her concern is that somehow this income even though it's reported and we still file taxes even though there's no income tax due....that the returns will not meet the requirements for banks going forward. Please help me put this concern to rest and assure me otherwise. Thanks!

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
I have questions regarding legal responsibility of a

Hi,I have questions regarding legal responsibility of a freelancing business.How much (%) tax I will have to pay to Irs every 4 months ?Are there any thresholds where the percentage goes up or down ?Do I have to form a sole trader account or I can just file tax when due as an individualThanks

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Lev

Retired

Bachelor's Degree Equivalent

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24,192 satisfied customers
Not sure if I am posting in the proper category. My wife and

Not sure if I am posting in the proper category. My wife and I are looking into getting out of the business we are in now due to a injuiry that keeps me from doing my job.We are looking at a retail shop in a heavy traffic of tourist. My question is if the bank would even consider financing this business since the inventory is low.The asking price for the business is $375,000, the Gross Income $490.000, Cash flow is $175,000. The inventor is $28,000. FF&E is $31,000.What's your thoughts.

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Andy4712

Attorney

Doctoral Degree

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I had a question regarding 1099's and K-1's. I am trying

Hi, I had a question regarding 1099's and K-1's. I am trying to prove my income for a refinance of my home. My husband and I don't take draws through Form W-2's. We take draws as necessary. The only thing we have at the end of the year to prove income is the Form K-1 but this year we have a huge amount of depreciation for some new machines we got, so when the net amount is pulling over to our Form 1040 it looks like it's a loss. Can I use the Form 1099 to report the income portion showing on Form K-1 for the mortgage company?

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BK-CPA

Bachelor's Degree

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972 satisfied customers
Since I am somewhat knowledgeable in the filing of personal and LLC return I decided to ge

Since I am somewhat knowledgeable in the filing of personal and LLC return I decided to get Turbo Tax Business and Home and Business to do it myself. I think I got most of it correct on my own but I want to make sure I have this one topic covered correctly. I used Quickbooks Pro 2013 for my accounting. I am a novice at it also. I am a professional software developer so I tend to try and do it yourself sometimes too much.The area I am having a problem with is increasing my Basis and how to properly account and report draws or distributions during the year. I can give you a quick scenario and you will understand I think what I am getting at.Here is the scenario:Company “A” starts doing business in 2015 with initial Capital of $1,000. This is a Virginia based LLC with a Subchapter S designation. There is a sole shareholder with 100% of the shares. The shareholder receives a salary of $15 hour and depending on the billing rate to the customer the rest of the income is split bet

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

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A question regarding retained earnings account. To verify,

A question regarding retained earnings account. To verify, if my start of year retained earning number was $1,000.00 for (2014-example). and I had a profit of $500.00 for 2014 as well, what is my retained earnings number when I begin 2015 after closing the 2014 year? It would be $1,500.00 to begin the 2015 year correct?

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TaxRobin

Vocational, Technical or Trade School

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Retained earnings represent the cumulative profits of the

Retained earnings represent the cumulative profits of the firm that have not been paid out to shareholders in the form of dividends. If a company has a large retained earnings balance, does it have a large cash balance? Why or why not?

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Rakhi Vasavada

Financial / Legal Advisor

Bachelor's Degree

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