The Small Business Tax Help Blog

Archive for July, 2009

Question: Is this a new Illinois tax law?

If you use space in your home on a regular basis in the trade or business of providing daycare, you may be able to deduct the business expenses even though you use the same space for non business purposes. To qualify for this exception, you must have applied for (and not have been rejected), been granted (and still have in effect), or be exempt from having a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law.

I do not have a home daycare license. I have never had one and have always filed as a home daycare provider. I have deducted mortgage, utilities,ETC… So my question is, is this a new law or are there exceptions. I called DCFS when I decide to start a home daycare and was told that I don’t need a license if I was watching under 3 children under the ages of 12. and I only watch 2. So now what am I supposed to do???

Answer: This is not new, and this is the same requirement for federal daycare “home office” deductions.

You are within the “rules” if you don’t need a license.

House bills mean change for tax laws pistol permit prices

Alabama tax law now conforms to federal law regarding paying quarterly estimates after HB504 was enacted this legislative session.

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Question: How do I get a tax exemption certificate or an exemption certificate for Colorado?`?

Opening a small biz, allready got an EIN number, but I will be re-selling garments. What kind of tax documentation do I need for this and where do I get it?
Thanks!!

Answer: You need to apply for a sales tax license from the State of Colorado. You can them purchase the items that you are reselling tax exempt.

Note: You can only purchase the items that you are reselling tax exempt. You would still pay taxes on the the items that you are using for the business (ie. Computers, Office Supplies, Samples, etc.)

NEWS / AKTUELLES

Um die Bedeutung von gesundem Essen zu betonen, weist die “Produce for Better Health Foundation” auf eine Untersuchung hin, die besagt, die Fettleibigkeitsraten bei Erwachsenen nahmen über die Jahre in 28 Staaten zu.

Ein Pferd ohne Grenzen [Colorado]

Question: how can i find out a daycares EIN (employer identification number)..?

my daycare closed down this past year, now that im doing my taxes i need the EIN, i have no way of getting ahold of the director to get this number, ive called the state licensing office, even the better business bereau..and no one has it, any ideas where i can get it..thanks

Answer: You can use paid subscription databases such as freeERISA.com EIN Finder http://www.freeerisa.com/Extras/EINFinder.asp

If that doesn't work, for private companies such as this daycare, EINs are often included in the company's Dun & Bradstreet report, they are often printed on the company's invoices. Check previous invoices you received from this daycare.

Or you can try searching the FEIN databases on KnowX.com http://knowx.com/ , Westlaw (FEIN-ALL) or Lexis (D&B;FEIN), which uses Dun & Bradstreet data.

If the company files with a Secretary of State the EIN may be on its annual report.

If the company filed for bankruptcy, the EIN may be on the docket sheet as part the company's address.

3-year-old girl on tricycle killed in her own driveway

UNIVERSITY PLACE, Wash. -  A tiny tricycle sat mangled beneath the hulking body of a Ford Expedition. Little more needed to be said to anyone who passed by the scene of such a horrific family tragedy. "It’s just so senseless," said one neighbor. Police tell KING 5 the driver of the Expedition just didn’t see 3-year-old Saniah Marcus who was on her tricycle directly in front of the SUV and he ran ...

Ein Engel(An Angel) - Die Schlümpfe

Question: We plan to hire our first employee (part-time) to help with our growing small business. What forms do we need?

She will work from her home and we will be sending her a 1099 at the end of the year for tax purposes. What forms do we need to have her fill out prior to starting? A W-9 perhaps?

Answer: You will need:
*W-9, of course
*A complete job application for records
*If you're going to do a background or credit check, you'll need a consent form
*You'll also need SF181. It's the race and national origin identification form. If you are an EEO (equal opportunity employer), you'll need this. You can download or print it online. The direct link is:

http://www.opm.gov/forms/pdfimage/sf0181.pdf

or you can just search "SF181" form.

*I hope this helps.

JIM FLYNN: From deathbed, estate tax will rise again in 2011

For high-net-worth individuals who take their estate planning seriously, 2010 is an important year. That’s because this is the year they need to die in order to avoid paying an estate tax. The story here goes back to 2001, when Congress, after much...

Year-End Tax Planning Could Significantly Save You Money

Question: Canada income tax – file income as an independent contractor?

I’m looking for some info on filing income from being an independent contractor. I worked 6 months in 2008 doing contract work (graphic design). I gave the company invoices and was paid monthly with no taxes or other deductions taken off. I’ve been putting aside a certain amount from each cheque based on an income tax calculator.

Now that it’s almost tax time, I’m not sure how to file this income – I usually use Quicktax or another software to do it myself. Do I claim it as small business income (T2125)? I read that if you make under 30k (my amount is roughly 20k) from small business, you don’t need a GST number – I don’t have a GST number so I am hoping this is correct.

I may end up getting an accountant to do my taxes for me, but if it itsn’t too complicated I’d like to do it myself as I like to learn about these things and do it on my own.

Answer: You might want to get a GST registration number anyway, as you can get a refund of GST paid on items that you purchased to create your designs. It's called an Input Tax Credit.

Fortis Inc. Earns $55 Million in Second Quarter

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - 08/04/10) - Fortis Inc. ("Fortis" or the "Corporation") (TSX: FTS - News ) achieved second quarter net earnings attributable to common equity shareholders of $55 million, or $0.32 per common share, up $2 million from $53 million, or $0.31 per common share, for the second quarter of 2009. Year-to-date net earnings attributable to common equity ...