shocked at taxes i owe

Discussion in 'Business Operations' started by jbob, Mar 25, 2004.

  1. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Only $300 in late penalty and no interest on 17 grand? I find that extremely hard to believe...
     
  2. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    Believe it. Been filling the same way for 7 years. Its a penalty, no interest. Check with a good accountant.
     
  3. bruces

    bruces LawnSite Senior Member
    Posts: 648

    quote:
    --------------------------------------------------------------------------------
    Originally posted by promower
    Why send in quarterlies when that money can sit in the bank and make you interest.
    --------------------------------------------------------------------------------


    The interest rates are so low now, you can't come out ahead.

    Also, you pay tax on the interest earned, the penalty paid is not deductible.

    quote:
    --------------------------------------------------------------------------------
    Originally posted by specialtylc
    I will be sending uncle sam over $17,000 on april 14. I dont send in quarterly, never have. Its not a requirement but I do have to pay about $300 late penalty.
    --------------------------------------------------------------------------------



    Only $300 in late penalty and no interest on 17 grand? I find that extremely hard to believe...


    Might be possible if the prior year tax was low, the penalty is based on the lower of this years tax or prior year's tax.

    Still, I'd recommend paying the estimates.
     
  4. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    Well if you dont figure the quarterly tax right they will still penalize you.Screwed either way.
     
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    For those of you who do not know, Bruce is a CPA and has offered a wealth of accouting and financial knowledge here on LS for a very long time.
     
  6. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    I never get shocked by the taxes I owe. I'ts part of running a legit business. What does bother me a little is when I hear people bragging about how much they are getting back. I owe about $2200.00 by April 15th on top of the $4000.00 I paid last year.
     
  7. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    If you put gasoline or on-road diesel into your off-road equipment, that is $.24 per gallon paid in tax that will offset your tax liability.

    Your state may also re-imburse you for state motor fuels tax payments.


    KB
     
  8. jbob

    jbob LawnSite Member
    Posts: 54

    i did not keep records the way i should have and my mileage and fuel was part of my problem.
    live and learn.

    jbob
     
  9. newleaflandscape

    newleaflandscape LawnSite Senior Member
    Posts: 348

    I bought a crap load of equipment this year including a new dump truck and I am paying im 4400
     

Share This Page