The Small Business Tax Help Blog

Archive for June, 2010

Police & community briefs – Jan. 25

Police and community news for the Ocala and Marion County area for Jan. 25, 2011.

Free Federal Prison Inmate Search – Is It Possible?

Question: If seller pays buyer’s closing costs, can seller claim them on Line 2 of California tax form 593-E?

I’m selling a house and paying some or most of the buyer’s closing costs. Can I claim those costs on California form 593-E, which is the Computation of Estimated Gain or Loss, in my case loss?

Answer: you have documentation that you paid these costs?
if so, yes

Ask the Experts: California homebuyer tax credit fund dwindles

This week, state Franchise Tax Board expert Brenda Voet answers questions on unpaid taxes and the fast-disappearing homebuyers’ tax credit.

John and Ken California Tea Party and Tax Revolt 2009

Question: Tax Question for an LLC?

I have a company that sells software online to fx traders in 2008?

Revenues: $ 74,952.00
Expenses: $ 13,123.66
Net Income: $ 61,828.34

What would the total tax be for a “single member LLC” in Illinois
Which includes federal, state, and self-employment taxes?
And any other taxes that I might be forgetting.

Thanks

Answer: You’ll need to file a separate return using your EIN. The LLC return should produce a K-1 form. You would pay your income tax showing the net proceeds from the K-1.
The rough estimate on the Fed portion of the LLC will be between 25-30% of your net income.

U.S. Economy: Manufacturing, Jobless Claims Point to Slowdown

Reports on U.S. manufacturing, employment and home sales pointed to slower growth in the second half of the year, just as government spending to stimulate the economy begins to wane.

Ch. 4 LLC & Self Employment Tax

Question: What computer software would best help me to manage the finances of my very small business?

I run a private counseling practice, so I don’t have any inventory or employees to manage. I don’t even need to send invoices most of the time. I operate the business as a sole propriator, and I include the business income on my personal tax returns. I just need to keep track of my income and expenses and plan my taxes. What software would be best for this? The software also needs to be affordable.

I have thought to use Quickbooks, or maybe Quicken since my business is very simple. But if I chose Quicken, which version would be best? Or would another program be better?

Answer: Sounds like Quickbooks, the smallest version they have. I use Quickbooks online, but it is because I’m a consultant that is always at my client’s place of business. I can send invoices, run credit cards, access my client data anywhere there is an internet connection.

Small business owners need a crash course in taxes

Estimated taxes. Self-employment taxes. Tax accounts. These are words that quickly enter the vocabulary of people who have been laid off and are making the transition to working for themselves.

Small Business Income Tax Planning & Preparation 2009, 2010.mov

Question: Please help with multiple state taxes?

Can I do my taxes this year with TurboTax?

I have no questions with Federal tax – I think I can just file as I normally do, but I’m confused about state taxes. Here’s the deal:
I moved to TN from PA on January 2 and TN has been my resident state for the entire year. My employer continued to withhold PA taxes for 4 months. I worked in TX for those 4 months (no state tax). Then I worked in CA for three weeks – CA tax withheld. Then I worked remotely from TN for a client in CA for the rest of the year (no tax withheld). 2nd job had accounting software problem and withheld tax for MD (company based in MD, but I was in TN working remotely).

So, how do I file state taxes? My resident state has no income tax, 3 weeks in CA I paid taxes, paid tax in PA and MD, but was not physically in those states during that time.

Can TurboTax help me figure this out or do I need an accountant?

Answer: You can try it on your own but I wouldn’t.

In all my years of preparing tax returns (9), I have never seen an individual prepare a multi-state return correctly. Usually the Federal return is file and all of the state returns are a complete mess.

New Laws Effective January 1, 2010

The following legislation will take effect beginning Jan. 1, 2010.

Payroll Software 2010 withholding tax – http://payroll.breaktru.com