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  #11  
Old 03-01-2009, 03:55 PM
TMlawncare TMlawncare is offline
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Usually your net income is before you pay your taxes. So if you did 100k gross and all your expenses totaled 70%. Your net income would be 30k. The 30k is also what you will pay Federal, State and self employment taxes on.
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  #12  
Old 03-01-2009, 04:07 PM
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FYS777 FYS777 is offline
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Quote:
Originally Posted by TMlawncare View Post
Usually your net income is before you pay your taxes. So if you did 100k gross and all your expenses totaled 70%. Your net income would be 30k. The 30k is also what you will pay Federal, State and self employment taxes on.
the other way around, time I take out state feds, tax and the other. I get around 50% within a couple %.

Last edited by FYS777; 03-01-2009 at 04:16 PM.
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  #13  
Old 03-01-2009, 05:58 PM
TMlawncare TMlawncare is offline
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Originally Posted by FYS777 View Post
the other way around, time I take out state feds, tax and the other. I get around 50% within a couple %.
That might be the way your doing it but your wrong. Your net income does not include taxes. You can not write your own taxes off can you? If you pay quarterly tax vouchers you apply them at tax time on your net income. The only taxes you can write off are payroll taxes.
In the eyes of the goverment, personal taxes are not an tax deductible expense. Therefore they can't be considered a business expense either.
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  #14  
Old 03-01-2009, 06:27 PM
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FYS777 FYS777 is offline
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I know that, I guess I should have said, after all exp. and pay tax is calculated, my net is some were around 68% and because I profit that much I owe state and fed so much, I took that off, 48 to 50% is actually mine.
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  #15  
Old 03-02-2009, 10:33 PM
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grasschopperofchicago grasschopperofchicago is offline
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I run about 50-52% net of gross pretax, definition of net can vary depending on what you are figuring...if I gross sales $280,000 my gross profit after expenses is about $144,000 and then pay taxes on that amount....

Last edited by grasschopperofchicago; 03-02-2009 at 10:38 PM.
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  #16  
Old 03-02-2009, 10:39 PM
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FYS777 FYS777 is offline
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Quote:
Originally Posted by grasschopperofchicago View Post
I run about 50-52% as well, definition of Net Income can vary if you aren't figuring it correctly...if I gross $280,000 I net about $144,000 and then pay taxes on that amount....give or take a % or so.
thats good, you have to make a good percent, called efficiency, and planing well
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  #17  
Old 03-02-2009, 10:52 PM
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grasschopperofchicago grasschopperofchicago is offline
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2 New Dixie Choppers spanked me!---couldn't pass up the 0% financing for 3.5 years!!
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  #18  
Old 03-03-2009, 04:23 PM
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PORTER 05 PORTER 05 is offline
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ya i did 37% after i paid my state/fed tax.
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  #19  
Old 03-06-2009, 09:47 AM
ExtExc ExtExc is offline
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so to K.I.S.S. for everyone, and for future reference, lets use these terms.

Gross Sales
Net Sales
Gross income
Net income


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