The Small Business Tax Help Blog

Archive for August, 2007

Question: Does anyone know the statute of limitations in Ga.for claiming alimony & child support?

I went through a noncontested divorce about 4 yrs ago. MY ex and I decided not to seek alimony or child support from one another.Instead we agreed to joint-custody and to split everything 50/50. The one thing he did promise me was he would always(until I remarried) provide me w/medical& dental. I trusted him and never got it in writting Stupid I know The thing is it wasn’t him that stopped providing it It was his new, controlling wife who put a stop to it. He then agreed to allow me to claim both of our kids since I qualified for earned income credit. Well his bitchy wife had a problem w/ this too. keep in mind this was an agreement made out of yrs I invested in this marriage. It was my divorce agreement and these are my children, not hers.I want to go back to court and seek alimony now. I have fms which is a chronic widespread pain that makes daily life dibilatating.MY survival resources have been sttripped away by someone who shouldn’t of had any control.Can I take him back to ct

Answer: Yes you can. Stand up for you and your children.
Even though you two had a verbal, the court can and will order him to set up insurance.
Just taking this to court will show the new wife you mean business, she should leave you alone then. The new wives are always jealous when you and your ex actually get along like decent humans.
Sorry you are having to go through this.

File your taxes for free

PORT CLINTON Residents of Ottawa, Sandusky, Wood and Seneca counties who earned less than $57,000 in 2009 can file their income taxes for free at any WSOS Community Action Commission office.

Question: If expense incur now and my business won’t start until next year, are the expense deductible for 2010?

I’m starting up a small home based business. I’m planning to buy office equipment and some inventory now, but the business won’t be up and running until January 2010. I want to claim the business expenses incurred this year as deductions for 2010? Is it possible and how? Should I choose the accrual based accounting method? Also should I open a business account now or it’s ok to pay the expenses with my personal credit card? thank you for your answers!

Answer: No, it's called a startup expense and must be deferred until the business opens. It does not matter if you are cash based or accrual.

Online portal to manage business mobile billing

HOUSTON, US: In an economy where extra caution has become a way of life for many small businesses , Validas, a pioneer in online wireless billing analysis, announced a new self-service portal for businesses with up to 500 lines.

Business Accounting : How to Set Up Chart of Accounts

Question: Why don’t middle and lower class Republicans agree with billionaire Warren Buffett’s view of our tax system???

http://www.timesonline.co.uk/tol/money/tax/article1996735.ece
Warren Buffett, the 3rd richest man in the world, pays taxes at a lower rate than his secretary.

Mr Buffett said that he was taxed at 17.7 per cent on the $46 million he made last year, without trying to avoid paying higher taxes, while his secretary, who earned $60,000, was taxed at 30 per cent.

Now honestly…how can anyone think that is right??

And for all of you that think that giving lower tax rates to the poor will hurt the economy and small business owners…why don’t you listen to the advice of one of the wealthiest and arguably smartest men in our country? Buffett says that the tax system and US government policy had accentuated a disparity of wealth that hurt the economy by stifling opportunity and motivation.

Is there no truth to this??

Answer: I am wondering why his secretary is paying at the rate he states ... that is not tax code to my understanding ... so there is some grandstanding and exageration to that point ....

We need to simplify and get rid of the IRS and its archaic system ... and attempt to make it more fair ... but yet not impose on people that are successful .... and not penalize those that are struggling ....

You know lawyers and politicians will get a hold of that and make it a mess

Northern Colorado business leaders brainstorm job ideas with lawmakers

DENVER - Northern Colorado business leaders converged Friday morning on the University of Denver to take part in roundtable discussions regarding the state of the economy and what legislators are calling a chance to rebuild.

Small Business Tax Protester Southern Pines Tea Party

Question: Independent contractor- claim the income or not?

I just got hired for an early morning paper route and was told that as such, I am considered an independent contractor. They further said that whether I claim the income or not is up to me. This is an adult route that pays $1100/month and I live in BC, Canada.

Is it true that I dont have to claim the income? They said if I did, the benefit would be I could write-off my car, fuel, supplies, and a few other things. Obviously, if I dont claim it, I don’t pay tax on it.

So, is it legal not to claim it, and are the tax refunds I get back from the write-offs going to amount to more than the income tax? If the benefits are small to claiming it, I’d rather avoid hassle and not claim it (if this is legal.) Someone pls advise which is the better option.

Answer: Anyone that says you don't have to claim any type of income is just downright lying. The consequences of not declaring your income are far worse than just paying the tax bill.

CRA can come back and assess penalties of the outstanding tax that are more than the tax would have been in the first place.

Because the company is hiring you as a contractor and not an employee, you are also responsible for your own deductions (Tax, CPP, ...)

The balance you'll have to maintain is whether it is worth your time and effort to keep track of your expenses. These days with computers, auto journals, it is relatively easy to keep track of your expenses.

A quick note about automobile expenses, these expenses are rarely 100%, ie. you probably use the same vehicle for personal as well as business. If you do, you have to keep track of how many km you use for business. At the end of the year, you'll add up all those km and do it as a percentage of the total km. This ratio then is applied for all your automobile expenses. If you try and just willy nilly claim expenses like I work 5 days a week, use $20 bucks a day, so thats 100 a week, 5200 a year, you'll probably hit CRA's list for an audit.

Truck Loggers convention descends on capital city next week

They will have to leave their cork boots outside and brush up tea etiquette when the Truck Loggers Association holds its annual convention at the Fairmont Empress Hotel next week.

About my SPY job...

Question: should we report business expense deductions for this year when we expect profit next year?

we had fun making a film this past year (2006) which we’re planning on selling in either the following year (2007) or the one after that (2008) depending on how things go. obviously we’re concerned about things slipping into hobby expense territory, but hypothetically if we do sell the film, we’ll obviously owe taxes on the profit and we’d want to use the expenses from the time we were making it to offset those taxes. do we file the losses this year against our regular income or can we “carry over” the deductions into the year we make profit? and what forms does all of this involve, assuming we’re working under a sole proprietorship?

Answer: carry it over, do a 3 yr average. tma sounds like she knows what she's talking about.

How Expensive Is Your Job?

Taxes, travel and social expenses could eat your earnings away.

MLM Tip: Convert living expenses into legitimate tax deductions!