Tax Question

[AWK]

Sorry K, but that's pretty funny.

Don't stop him, he's on a roll.

[Kaos]

Sorry K, but that's pretty funny.

Only because it's a part of a different argument that had a different meaning.  Out of context. 

[AWK]

Only because it's a part of a different argument that had a different meaning.  Out of context.

Didn't your "everything is deductible" joke you are running with stem from that thread?

[Kaos]

Don't stop him, he's on a roll.

I know you've got 's back (and front) but he was so busy making noise and showing his "expertise" he never grasped the very simple concept that the money the IRS shows as mine really ISN'T mine because I can't take it out if I'm growing the business and because it may or may not exist depending on the accounting gymnastics used to create figures from the past and for the future. 

Nothing anybody can say will ever change that reality.  It is what it is.  Been living it for a long time.

[GH2001]

In a business world like mine where I have travel, entertainment, salaries, bonuses, commissions, development, hardware, software, blah blah blah every dime is NOT (and probably never will be) 100% deductible. 

Capice?

Not trying to argue with you but since when did those things stop becoming "expenses"? Expenses that come out before bottom line income.

[Kaos]

Didn't your "everything is deductible" joke you are running with stem from that thread?

Yes, but the idea that I said salaries aren't deductible is fraudulent.  That's not what the statement he posted means. 

Of course they are (as a general rule).  That entire argument was in reference to Obama's definition of "the rich" is based on paper P&L that isn't necessarily reality based.  Just because the P&L says I "made" XXX doesn't mean I can actually go to the bank and take that money out as mine. 

And it went from there. 

Unless it didn't. 

[Kaos]

Not trying to argue with you but since when did those things stop becoming "expenses"? Expenses that come out before bottom line income.

Didn't say they WEREN'T expenses for God's sake.  They are.  When they're applied is a different matter.

I'm going to fire all my fucking accountants. I've OBVIOUSLY been overthinking this. 

I'll just take what I deposit in the bank, get me a Neat Receipts machine and run every receipt I get through it.  When I get to the end of the year, I'll take that number, give it to the IRS and call it good. 

[GH2001]

Didn't say they WEREN'T expenses for God's sake.  They are.  When they're applied is a different matter.

I'm going to fire all my fucking accountants. I've OBVIOUSLY been overthinking this. 

I'll just take what I deposit in the bank, get me a Neat Receipts machine and run every receipt I get through it.  When I get to the end of the year, I'll take that number, give it to the IRS and call it good.

Not saying that.

You just said that stuff wasn't deductible. Last time I did it with my business it was. The only thing you listed I have ever not deducted 100% in the same year was equipment which I used depreciation on. Maybe we're getting into semantics with the words "earned" and "income" as it relates to before or after certain expenses. I was mainly just refering to your analysis of not being able to deduct those items you listed. That just doesn't sound right.

[wesfau2]

Look: there's a simple solution here.

K should fire his two accountants and let AWK and do his taxes.  Instant savings win.

[AWK]

Look: there's a simple solution here.

K should fire his two accountants and let AWK and do his taxes.  Instant savings win.

I won't even charge you a fee.  Well, except you will have to chase around with your KISS makeup on for my enjoyment.

[Vandy Vol]

You fail to comprehend. 

Obama's definition of "the rich" includes BLAH BLAH CRY CRY WAH

Your quoted statement explains that what an LLC or S-Corp earns as gross income (prior to any deductions being taken) is shown on the owner's personal return.

False.

Business expenses are taken out at the 1065 and 1120-S level.  They are never reported on your personal return for LLCs or S-Corps.  What is reported on your personal return is the amount after deductions are taken out, which includes the "salararies" you pay your employees.

But it's useless explaining it to you yet again.  I'm sure that you have an after-the-fact explanation for this tidbit of intelligence as well:

Do you really think that when I spend $50,000 on a server I can just go to my tax form and wipe $50k from the income column?

Just as a reminder, the answer to that question is "Yes," so you may want to start fabricating your Gregg Williams' response about what you "really meant."

[Townhallsavoy]

An update on MY thread -

I turned the side gig down.  I could get my own students in my own basement and charge the $80/month and not split it with anyone.  That's going from $40 an hour to around $14 an hour just to use someone else's office.  Bump that.

I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club. 

On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises.  Anyone not deemed rich enough is shot immediately. 

[Kaos]

Fuck it. 

I clearly haven't run a business for years, I have no idea at all how things actually work, I didn't file taxes for the last 30 years and I've never gotten a K-1 -- because all I really need is a stack of receipts and a calculator. 

seized on an example (admittedly a poor one) I tried to use, failed to comprehend that it was just a random illustration not to be taken literally and stuck to it like a tick to a dog's balls. Fail.

And somebody took an offhand comment today and turned it into a crusade. 

I'm not going to go over my returns line by line.  But if you want to believe its as simple as $ in - $ spent = profit/loss that appears on your K1 and = cash in the bank, please PLEASE, I implore you to fire your accountants, fire your tax attorneys, fire your bookkeepers and just keep up with your business with a pencil on a grocery sack.  The IRS will thank you for simplifying their life.

[AWK]

Fuck it. 

I clearly haven't run a business for years, I have no idea at all how things actually work, I didn't file taxes for the last 30 years and I've never gotten a K-1 -- because all I really need is a stack of receipts and a calculator. 

seized on an example (admittedly a poor one) I tried to use, failed to comprehend that it was just a random illustration not to be taken literally and stuck to it like a tick to a dog's balls. Fail.

And somebody took an offhand comment today and turned it into a crusade. 

I'm not going to go over my returns line by line.  But if you want to believe its as simple as $ in - $ spent = profit/loss that appears on your K1 and = cash in the bank, please PLEASE, I implore you to fire your accountants, fire your tax attorneys, fire your bookkeepers and just keep up with your business with a pencil on a grocery sack.  The IRS will thank you for simplifying their life.

[Vandy Vol]

Fuck it.

So angry...about something that you started in this thread...

[Kaos]

So angry...about something that you started in this thread...

Really?  I made a prowlerish joke.  Somebody else embarked on a chopperian rampage based on that offhand comment. 

Unless they didn't.  But they did.

[Vandy Vol]

Really?  I made a prowlerish joke.  Somebody else embarked on a chopperian rampage based on that offhand comment.

Yes, the one offhand comment caused me to reply.

Don't forget, you can deduct EVERY dime you ever spend and then some!!!

By the time you get through deducting you'll be making thousands and thousands a week!!!!!

Just ask a tax lawyer. 

 

If he would just log in here, all his tax troubles would disappear.  He'd find out that he can deduct every penny he ever spent, even on sharp brims and playa threads.  All deductible.  Everything spent can be written off.

By the time he got through being educated on this board, the IRS would owe HIM money.  Tons of it.

Don't recall saying you couldn't deduct payroll.  I know you can deduct payroll in most circumstances.

Was more making snide reference to the entire "deduct everything" scenario which -- despite protestations -- is complete and utter bullshit.

That's the three one.

[DnATL]

An update on MY thread -

I turned the side gig down.  I could get my own students in my own basement and charge the $80/month and not split it with anyone.  That's going from $40 an hour to around $14 an hour just to use someone else's office.  Bump that.

I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club. 

On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises.  Anyone not deemed rich enough is shot immediately.

will definitely do your taxes pro bono

[chinook]

An update on MY thread -

I turned the side gig down.  I could get my own students in my own basement and charge the $80/month and not split it with anyone.  That's going from $40 an hour to around $14 an hour just to use someone else's office.  Bump that.

I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club. 

On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises.  Anyone not deemed rich enough is shot immediately. 

make sure your home owners policy is tight.

[GH2001]

An update on MY thread -

I turned the side gig down.  I could get my own students in my own basement and charge the $80/month and not split it with anyone.  That's going from $40 an hour to around $14 an hour just to use someone else's office.  Bump that.

I did bring my demo CD to Riverchase Country Club, Birmingham Country Club, and Mountain Brook Country Club. 

On another note, I'm fairly sure the Birmingham Country Club has sharks with laser beams attached to their heads patrolling the premises.  Anyone not deemed rich enough is shot immediately.

It's like this thread is actually about you or something. Imagine that.