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jeff_0
04-29-2003, 01:14 AM
i'm new to having my own business.. i started last year... it's kind of hard for me to track all of my income.. does everyone claim every dollar they make

lawnMaster5000
04-29-2003, 02:15 AM
Yes i claim all my income, all business income is tracked directly through quickbooks and i am not even able to receive a payment without it getting recorded, otherwise all kinds off things become unbalanced.

Most of the guys here claim 100% of their income and the ones that don't should.

If you have problems tracking income you need to look into investing into some sort of accounting system. That can either be a paper system or a little more expensive, but tons easier a computer system.

If you search this site you will be able to find alot of information on book keeping practices.

KerryB
04-29-2003, 09:17 AM
Time to buy Quickbooks. lol
If you cant track all your income then you surely cant track all of your expenses.
How will you know if your making a profit?
And yes I claim all my income and take all my deductions. I keep up with it on a daily, weekly and monthly basis. That way I know if I need to buy more equipment to offset income.

jeff_0
04-29-2003, 05:07 PM
thank you guys.. i'll looking into buying quickbooks

Green Pastures
04-29-2003, 08:39 PM
YES, honesty is always the best policy.
God provides all I need IF..........I do what's right.

Meier
04-29-2003, 10:48 PM
You need to track EVERYTHING that's business related. Even if you plan to under-report your income (which I wouldn't advise) you need to have a legitimate set of business income/expense records.

If you plan to hide revenues from the IRS, etc...I'd recommend you keep two sets of records. One for the IRS in case they ever audit you and another set so that you know what your making.

If you don't keep track of every penny (whether reported to the IRS or not), how will you know how much money your making?

You need to know how much money your making, in my opinion.

Again, I would STRONGLY recommend against trying to pull any kind of BS with the IRS. From what I understand, you don't want those problems. If/when you eventually get, you could face very stiff fines, penalties and back taxes. Probably risk going to prison.

I report everything to the IRS.

Later,
DFW, TX

Doogiegh
04-30-2003, 12:27 AM
Yeah, blah blah blah IRS, prison, penalty etc... They are all hyped up and can and do happen.

BUT a real, totally UNDERESTIMATED problem is this:

Business is doing Very well. You decide to continue to grow and get a new piece of equipment. When you go for the loan, you put down your income. Well now, with your debts and truck payment and other loans all being paid on this little bit of income you "SAY" you make, you are denied for a loan. (Example, you make $35,000 a year but CLAIM to only make $27,000)... So now what do you do? Tell the loan person no really, you have more money and lied about the income? Or go buy some used piece of **** machine of which you are risking your entire business growth on? (Dependability, reliability)...

It is all a big cycle... Claim all the income, get bigger equipment and use it as a deduction at tax time so that you're not hurt... make more money, buy bigger equipment (trucks, crews etc), and make even more money.... one fist feeding the other.. Can't happen if you make the same $27,000 bogus income year after year after year....

Good luck,
Gary

nu83
04-30-2003, 05:37 PM
If you go to sell your business sometime down the road the value of your business will be hurt if you under claimed income.

tiedeman
04-30-2003, 09:01 PM
yup, claim all income

wriken
04-30-2003, 09:12 PM
yep even the nice green stuff

KirbyKLC
04-30-2003, 10:23 PM
Every nickel. Not worth the consequences when you get caught. Furthermore -- read again what Green Pastures said.

hustlers
05-01-2003, 10:57 PM
98%------There are a couple of cash jobs for close friends
or relatives, I claimed that though on last years taxes as
cash income-----------

Cash receipts -I forget to keep track of cash receipts dumps fees
coffee, snacks

bruces
05-02-2003, 07:07 AM
Originally posted by jeff_0
i'm new to having my own business.. i started last year... it's kind of hard for me to track all of my income.. does everyone claim every dollar they make

No offense, but to even ask this question on a public forum is idiotic!!

And even more idiotic would be for someone to answer, "No, I just claim 2/3 of my income."

What if there is an IRS agent who is a member who is a part time LCO?

He would love to talk to all of the people who advocate not claiming all their income.

Don't admit to breaking the law in public!!!

jeff_0
05-02-2003, 05:39 PM
yeah, good point

Gene $immons
05-04-2003, 09:26 AM
It is all such a joke that the tax rates are so high. I work my tail off for every dime I make. If a customer decides to come out and pay in cash, which occasionally happens, I put the money in my wallet and forget about it. Doesn't the IRS have bigger fish to fry? Like Enron and Tyco?

Haley Lawn Care
05-05-2003, 12:27 PM
Last week I was mowing in a neighborhood when a lady drove by and said mow my lawn, I just had surgery and cant do it this week. I said okay and gave her a price. She paid in cash even more than I quoted her. I will probably not do her yard again so I did not report the money. I dont really like jobs like that I wish they would become regular customers. If my regular customer pays in cash or makes the check to me instead of the company I still make an invoice and stamp the check and make the deposit. I usually have less than $60.00 per year in cash payments.

David :)

cos
05-05-2003, 12:41 PM
Originally posted by jeff_0
.. i started last year... it's kind of hard for me to track all of my income..

You don't know how much is coming in? Even if you have a paper system, you should know what you are making and even what you are paying out in expenses. What happens when tax season comes? Do you just fudge it? That's real bad, if you do.

CO.d 502nd
05-05-2003, 01:32 PM
First i get very little cash all mine pay by check and i deposity into a biz account.
I claim every penny i make right down to the last little penny.
With the biz and my pension i get hit hard by taxes most years .
I try to do what is right and what is right is reporting all procedes i take in.

GraZZmaZter
05-05-2003, 10:08 PM
I report all income.

Neighbors got in bad with the IRS for not paying taxes for some time. WOW the stories they tell me would scare any one of you into claiming that quarter you found on your clients sidewalk last week!

IRS is no joke, and they are ORGANIZED!

KerryB
05-06-2003, 08:09 AM
All my accounts pay by ck. We had a LCO get in bad with the IRS and I dont want that to happen to me. I deposit all my income into a business account.