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  #11  
Old 09-17-2005, 05:54 PM
Sean Adams Sean Adams is offline
 
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Location: Pennsylvania
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bobby - the only thing I learned is that you need to brush up on your understanding of basic business tax laws, you do not even come close to 75% net, and you have an extremely difficult time admitting when you are wrong... if you need any more help let me know... here is a good place to start - www.irs.gov
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  #12  
Old 09-17-2005, 07:20 PM
bobbygedd bobbygedd is offline
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look, i won't make you look bad, on your own forum, as my friend big bob says....." always the best, to you and your family"
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  #13  
Old 09-17-2005, 10:19 PM
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git er done landscaping git er done landscaping is offline
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sean. you know you will never get the last word in on this loser. but it's sad when you have to lock a thread just to stop the BS. (bob$h!t) but i do thank you and the others for the tips from succesfull buisness owners.
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  #14  
Old 09-18-2005, 12:16 AM
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Nosmo Nosmo is offline
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Partnerships and Proprietorships

I used to do income taxes back in the early 80's and 90's but if someone is a glutton for punishment he should try doing taxes and he will find out how most everyone trys to claim they are dirt poor.

A partnership business pays no taxes. It only takes into account the income of the business less the allowed expenses. The percentage of income (if any) or losses are
determined on form 1065 and reported to the IRS. A
copy is also given to each partner . In this instance the loss or gain would be NET loss or NET gain. Each partner is responsible for reporting this income or loss on the proper line of form 1040 . Now we are back to the other items of income which can be many things eg. interest etc.
All of these items are added up and we have TOTAL income.
In a more complicated 1040 return one of the partners might have another business or two. He would do a schedule C and report this income on the same 1040.

After deducting any allowed amounts for IRA's etc we arrive at the ADJUSTED gross income. Of course we flip the 1040 over and start down the back side to figure standard deductions etc. , self employment taxes and income tax.

A sole proprietorship (is personal) he is the business and anything that pertains to this one business is handled just like the example of Johnny. The person may have more than one business and also work for an employer to earn additional income. Each separate business is reported on
a separate schedule C and arrives at either NET loss or NET gain. The amounts of each schedule C are carried to the proper line of the 1040. If this person worked for someone
as an employee during the year he should receive a W-2 and of course this amount is reported on the same 1040.
The rest is the same example as Johnny.

Total income would be all amounts of income --- less any
allowed deductions IRA's eg. and we arrive at ADJUSTED gross income. Flip the 1040 over and start down the back side -- standard deductions, self employment taxes and income taxes.

Sorry to make this so long but there is a difference in these two types of businesses and the way income is reported to the IRS . Let's not even get into the folks who are incorporated.

Nosmo
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  #15  
Old 09-18-2005, 12:24 AM
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Nosmo Nosmo is offline
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Varied Income Example

One return I used to do back in the 1980's would be an example of varied types of income. This person was my boss , a public accountant and the District Court Clerk.

First of all I did a partnership return because my boss was a partner in a farm.

I had to do a schedule C because my boss was a proprietor of a second hand store . Paid a salary to a full time employee to run that business.

In addition to the above incomes my boss made at that time about $40,000 per year as Court Clerk.

Every person is a different story when it comes to doing his or her taxes. I never remember any two situations being the same.

Nosmo
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  #16  
Old 09-18-2005, 08:18 AM
bobbygedd bobbygedd is offline
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ok, if i'm not even close to 75%, then YOU TELL ME, what is REALISTIC NUMBER, what should someone in this business EXPECT to gross? 10%? 20%? we are talking here, not arguing. i got down (on paper) how incredibly simple it is to net 50%, working approx 36 weeks, without breaking a sweat. wanna hear it? btw sean, i never said taxes didn't count, but, after all expenses, if you have enough dependents, you should probably pay about 15% in income tax.
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  #17  
Old 09-18-2005, 09:07 AM
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Nosmo Nosmo is offline
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What Should I Gross ?

Let's try and take that question step by step. Let's it a step at a time and assume only one type of income which is from servicing lawns.

On the Schedule C :
Total Income From Services 100,000.00
Less All Business Expenses - 25,000.00
Net Income From Services 75,000.00

Looking at the figures at this point your net income would be 75% ------- but we go on to the 1040 and also the Self Employment Form (Social Security). Let's just say we don't have any other income (interest etc.) or deductions
(IRA's etc.).

So at this point your Adjusted Gross Income is $75,000.00
and we flip the 1040 and start down the back side.

Let's say you have and wife and 2-kids. Your deductions
are (this is just a guess as I don't have the current figures). Adjusted Gross Income $75,000.00
Less Standard Deduction - 7,000.00
Less Exemptions (4) -12,000.00
Taxable Income $56,000.00

Self Employment Form - you would show $75,000.00 as your business income and pay whatever the current rate on whatever the maximum amount is at this time. Let's just estimate your Social Security amount due is $4,000.00. And let's assume your income tax on the $56,000.00 is $9,000.00.

Total due the IRS is $13,000.00 . Let's just assume you did not make any estimated tax payments during the year and there will be no penalties in this example.

Gonna start another reply box.
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  #18  
Old 09-18-2005, 09:20 AM
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Nosmo Nosmo is offline
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How much did I really make % wise ?

As far as the business we already have arrived at 75% as the net business income.

Let's assume you spent exactly what was allowed for your
personal expenses for the family and now you only have $56,000.00 as your disposable income. Now the percentage has dropped to 56%.

Your total taxes are 13,000.00 . After paying your taxes you only have $43,000.00 as the final disposable income figure. The percentage has now dropped to 43% .

Here's how it really is :
Net Business Income ---------------- 75%
Net Personal Income Before Taxes ---56%
Net Personal Income After Taxes -----43%
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  #19  
Old 09-18-2005, 09:33 AM
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Nosmo Nosmo is offline
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Your Own Situation

In short: It just depends on how hard and efficiently you work as to what the gross figure will be.

It also depends on how you handle your expenses and of course unexpected costs will occur. These expenses deducted from the gross figure will determine your percentage of Net Business Income.

More work = More Gross Income
Cutting down on expenses = More Net Business Income
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  #20  
Old 09-18-2005, 06:24 PM
J&R J&R is offline
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It your Net spendable income. That's what you make.
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GOD BLESS AMERICA
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