Paying taxes question

[Grits]

If you do not show a profit for the year, do you have to file?

[PMLAWN]

yes, The IRS still wants to see:)

[Grits]

yes, The IRS still wants to see:)
Well, CRAP! I am not sure I want to see how far in the hole I am! I just won't let the wife know.:)
I guess I need to get everything in order....:dizzy: What a pain! Oh well, that's part of it.

[Grits]

Any advice on getting started preparing for taxes?

[PMLAWN]

Hate to say it but prep needed to start from the first purchases you made.
Round up all your reciets from everything you spent money on. Produce an income statement. Set an appointment with your accountant:)

On Dec 31st go buy Quickbooks (or something like it)and next year use it to keep track of every penny. That way next years taxes will be a lot easier

[Roger]

On Dec 31st go buy Quickbooks (or something like it)and next year use it to keep track of every penny. That way next years taxes will be a lot easier

Good advice, except December 31 is probably too late. You want to up and running by January 1. Getting QB, or any other program, will take some time to setup. Allow yourself the time to do it right so that you are not trying to learn the procedures while you are busy with your business.

[Grits]

Hate to say it but prep needed to start from the first purchases you made.
Round up all your reciets from everything you spent money on. Produce an income statement. Set an appointment with your accountant:)

On Dec 31st go buy Quickbooks (or something like it)and next year use it to keep track of every penny. That way next years taxes will be a lot easier

I have all my receipts in anticipation of this. I just don't know what to do with them!:hammerhead: So I just need to take the receipts to my accountant and then go from there....? PM, Do you use QB? Do you think the basic QB will be sufficient for right now...being a small operation (at the moment). Should I just bite the bullet and get both Gopher and QB? Thanks for all your help! This is the part that I have been dreading.

[PMLAWN]

I have all my receipts in anticipation of this. I just don't know what to do with them!:hammerhead: So I just need to take the receipts to my accountant and then go from there....? PM, Do you use QB? Do you think the basic QB will be sufficient for right now...being a small operation (at the moment). Should I just bite the bullet and get both Gopher and QB? Thanks for all your help! This is the part that I have been dreading.
I use QB because I use it for a few different business and Gopher would fall short of what I need, But I did use Gopher for the schedule part and played with the banking and billing part. For a LCO only business it will work fine, I think you may be OK to try that first and see how you like it.
Roger is right about starting early, (he so technical:) my point was to do it before Jan 1 so all of next year is on it:laugh: )
I feel the learning curve will be easier than QB and you get the schedule part that converts right into invoices. very easy and saves time

[Grits]

I use QB because I use it for a few different business and Gopher would fall short of what I need, But I did use Gopher for the schedule part and played with the banking and billing part. For a LCO only business it will work fine, I think you may be OK to try that first and see how you like it.
Roger is right about starting early, (he so technical:) my point was to do it before Jan 1 so all of next year is on it:laugh: )
I feel the learning curve will be easier than QB and you get the schedule part that converts right into invoices. very easy and saves time

Thanks PM! I will go ahead and get gopher this week.

[sildoc]

Any advice on getting started preparing for taxes?
Make a spread sheet of all your expenditures and group them. I.e. Bark, Fertilizer, Repairs, Equipment, Hand tools, Fuel truck, Fuel equipment ect.
This will save you money if your accountant doesn't have to. Then have your earnings statement( the money you took in).
Make sure on your equipment you only average them out enough to keep you at zero profit. don't take a loss if you don't have to because as you grow you will need these to be deducted.
Be prepared to pay around 300 for your first taxes, after that you can figure out what you can do as opposed to your accountant.

[Albemarle Lawn]

WHAT REFUND?

.....the taxes paid on fuel refund.

You put gas in your mowers, right?

That gas includes highway taxes, about .$24/gal federal, plus whatever your state charges.


So if you burned 1,000 gallons get that $240 back!

Form 4136 http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=4136&search.x=0&search.y=0&search=%26%24self.text%28u%27search%27%29%3B



Plus, you'll be legal. And if you have kids, etc, you may be able to get the EIC

[topsites]

Well, CRAP! I am not sure I want to see how far in the hole I am! I just won't let the wife know.:)
I guess I need to get everything in order....:dizzy: What a pain! Oh well, that's part of it.

uhm, nothing like a huge loss in black and white to help with raising prices, it's all good.
btw, you're supposed to file quarterly, and send in estimated payments.
You won't have too much trouble with this your first year, but later you will.

You know you can carry capital losses forward to an extent, right?
You may wish to consider doing so, just in case you turn a profit in a year or two, it may come in handy.

Last but not least, I recommend Intuit's Turbotax.

p.s.: Get a business credit card so you get an itemized statement at the end of the year of all your expenses, then charge every expense on the card. The only reason to keep receipts is you want to have a HUGE box full of them, just in case someone ever comes around asking stupid questions concerning your receipts, you can point at the box and say 'oh yeah, right there, did you want to add them up?'
Yeah...
Keep your receipts... LOL !

[fiveoboy01]

You did say you have an accountant, right?

I take all my expense receipts and a gross income statement to my accountant every quarter, and let her do the dirty work.

But for next year, I'm going to get QB, so I can track my expenses better.

[bruces]

You definitely want to file. If you have a loss, it can offset other income, such as a regular job or your spouse's w-2. If you don't have other income, it can create a loss that can be carried forward or back.

[Grits]

You definitely want to file. If you have a loss, it can offset other income, such as a regular job or your spouse's w-2. If you don't have other income, it can create a loss that can be carried forward or back.

I was wondering about this. So as a Sole Proprietor, do I file business with personal or keep them seperate? I am ASSuming together.

[bruces]

Together, as a sole proprietor, you file you business income and expenses using schedule c. The profit or loss adds to or subtracts from your other income.