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RABBITMAN11
11-15-2010, 10:56 AM
Just got off the phone with my CPA. They told me that starting next year you will have to 1099 anyone over 600 regarless if it is office supplies Fert, Gas station. You name it and you will have to 1099 them. This was part of the the wonderful Health Care Reform. This Government is so out of touch with reality. But we have health care. Im telling you this is going to be a accounting nightmare. Extra time and and money. Just FYI.

robert@rittenhouse
11-15-2010, 05:55 PM
I read that any credit/debit card purchases are exempt from this form. The credit card companies will be taking care of that with respect to your vendors.

Obviously, your Accountant can confirm this for you. But it means not as much paperwork as you are expecting.

RABBITMAN11
11-15-2010, 06:16 PM
Nothing will be exempt...
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rcreech
11-15-2010, 06:17 PM
Gotta love it!

Whats up Rabbit?

Lunch soon?

robert@rittenhouse
11-15-2010, 06:27 PM
Check with your Accountant. I was reading about this last week because we take a lot of credit card orders so that is why I remember it.

I could be wrong but I doubt it.

RABBITMAN11
11-15-2010, 06:29 PM
Sounds good let me know.
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thomsoutdoor
11-15-2010, 06:50 PM
Its still a PIA. I wish they would come up with ways to make our lives easier not more difficult.

LawnoftheMonth
11-15-2010, 08:45 PM
http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/index.htm

It doesnt say anything about credit card purchases, but that makes sense.

:confused:

fl-landscapes
11-15-2010, 08:48 PM
recently our genius politicians have been talking about doing away with it before it starts, its seems to be something dems and repubs agree on.

grassman177
11-15-2010, 08:52 PM
i agree with doing away with it, as it ended up a big mess with not much of anything good in it in the end

GunnPropertyServices
11-15-2010, 11:05 PM
Its a big joke, more restrictions on small business, every step you take forward its more taxes, more fees, different licenses, more insurance.

sedge
11-16-2010, 12:27 AM
Its a big joke, more restrictions on small business, every step you take forward its more taxes, more fees, different licenses, more insurance.

Hey it's the democrap and the Obama way...... You can thank every one that ever votes democrap as they are all for bigger and bigger government interfering with our freedoms. They think more government makes everything better, when the facts are the opposite, as, if that was the case, things would be getting better every year, not worse!

I will add though, the ******s haven't been much better lately. Hopefully they finally got it with this last election.

greendoctor
11-16-2010, 03:50 AM
I read that any credit/debit card purchases are exempt from this form. The credit card companies will be taking care of that with respect to your vendors.

Obviously, your Accountant can confirm this for you. But it means not as much paperwork as you are expecting.

I hope so. Everything I buy for the business goes on a company debit card, including orders I place with you. The guys that this latest edict will really hurt are the ones who run their entire business with a wad of cash in their pocket. However, the intrusion still goes against my grain. Want to go after the tax and license dodgers, do so in a way that does not penalize the legitimate operators.

RABBITMAN11
11-16-2010, 07:17 AM
This is a direct effect of the.organic/environmental screw balls that.think Mr.government should step in and help us by passing more laws, more regulations. The only thing the government knows how to do well is ruin the American dream. So all you stupid democrats this is your fault......
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grassman177
11-16-2010, 09:02 AM
no it is not, but i can see your frustrations. i dont like republicans, but there are many of them making sense of the mess righ now.................

Ric
11-16-2010, 09:42 AM
http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/index.htm

It doesnt say anything about credit card purchases, but that makes sense.

:confused:

What I would like to post would not only get deleted, I would be ban forever.

RABBITMAN11
11-16-2010, 09:46 AM
What I would like to post would not only get deleted, I would be ban forever.

Let it rip!!!

robert@rittenhouse
11-16-2010, 10:02 AM
The guys that this latest edict will really hurt are the ones who run their entire business with a wad of cash in their pocket.

I think that is the whole point of this Mr. GreenDoctor. To get these cash deals above the table so they can be taxed.

Now, I am not an Accountant (nor am I even an American) but when I heard about this I was afraid we were going to get a blizzard of paperwork each spring for every $600 sale we have during a year. Which would be in the many thousands each year. So I read a little further and found out that all credit card purchases are exempt and credit card companies will be doing the reporting.

If you go to this link, you will see what I am saying. Here is the key quote:

"Whenever a business uses a credit or debit card, there will be no new burden under the new law."


from this page on CNN Money

http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/index.htm

But like I said (and will repeat) check with your own Accountant. I do not want to be held responsible for any mistakes.

Take care,

ted putnam
11-16-2010, 10:06 AM
I started out as a DBA with a bank account with a debit card. The account is still open but has a balance of less than $10. About 6 yrs ago I incorporated. At that time I was required to open a new business account with the "Inc." on it. I have to keep a minimum balance of $500 in it to avoid a $5/ month penalty. At the time I opened it, I asked for a debit card and the bank informed me that no debit card could be issued for this particular account. So, I am limited to writing checks. I pay for 99% of everything I purchase at the time with a check. I pay sales tax on everything so I am not required to pay it later along with loads of paperwork. I suppose since I am one of the folks who operate without a "debit/credit" card, I'll be one who gets SCREWED. That's just great....THANKS government.

Ric
11-16-2010, 10:13 AM
Let it rip!!!

Rabbit

Let us just say the Government has never been known to use vaseline when dealing with small business.


Ted

The no Debt Card thing might be part of your state banking law. I have debt cards on all accounts including the Corporation which limbo right now. Like you I purchase cash (debt card) up front and no longer have a credit card of any kind. (BTW) No Credit cards can be a bad thing and I need to get at least one.

djagusch
11-16-2010, 10:21 AM
I the banks and cc company's need to do reporting of this they are going to past the cost on to the customer. Still will cost money but but we won't directly see it. About a month or so ago the banks needed to change overdraft policies and also changed terms on my account due to gov regs (luckly it won't affect me but for some it could). All fees went slightly higher and this was a bigger regional bank without money issues (over 100 branches).
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ted putnam
11-16-2010, 10:38 AM
Rabbit

Let us just say the Government has never been known to use vaseline when dealing with small business.


Ted

The no Debt Card thing might be part of your state banking law. I have debt cards on all accounts including the Corporation which limbo right now. Like you I purchase cash (debt card) up front and no longer have a credit card of any kind. (BTW) No Credit cards can be a bad thing and I need to get at least one.

Ric, I think the old saying " you have to have credit to get credit" rings true. A person is not going to have much of a credit score to check if they pay cash for everything and never establish credit. That being said, I have a couple of credit cards with running balances. However, I don't use them for my day to day operations. I think this is just another way to "pad" the big banks pockets with fees and interest earnings and to bend me over and "PORK" me from behind....like that isn't happening all the time anyway.

Ric
11-16-2010, 11:02 AM
Ric, I think the old saying " you have to have credit to get credit" rings true. A person is not going to have much of a credit score to check if they pay cash for everything and never establish credit. That being said, I have a couple of credit cards with running balances. However, I don't use them for my day to day operations. I think this is just another way to "pad" the big banks pockets with fees and interest earnings and to bend me over and "PORK" me from behind....like that isn't happening all the time anyway.

Ted

I have good credit or did. I have had a few mortgages and loans etc over the years. Just nothing current in the last several years. I have not checked my score in a long time. But if you don't use your Credit Cards, they cancel them. CC Companies only make money if you use the card and it costs money to keep someone on the books if they aren't using the card. Of Course they hate if you pay off your account each month.

My family and friends are here in Florida within driving distance. But last trip I took out of state could have been better if I had a Credit Card. I got hassled renting a car and even by the Hotel who took a huge deposit on my debt card.