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Post by frankandnick on Feb 4, 2012 15:26:40 GMT -6
Hi guy's and gal's.
Its tax time and this is are first year of actually selling a large amount of fish.
I(Nick) am not sure what I need to do about the whole tax thing, and was hoping someone who does sell fish enough that they have to claim it could help me out here.
As some of you know me and my father frank have been breeding angels, rams, plecos and discus(well not so much discus they are stubborn)
I have been keeping track of all the things we sell and buy.
What else do I need to do?
I was the person who started this little hobby\business of ours.
I guess my questions in all of this is, is this:
1. What do I need to do with all my paperwork? Take it to h&r block? Get a CPA?
2. Is the only paperwork I need just what iv sold, and its source like aqua-bid\eBay & selling price\shipping charge?
3. Is frank my employ? Do I need to give him some kind of paperwork?
4. How would I take money out of are fish fund to pay myself? Do I need a payroll form of sorts?
If anyone has any info on this that would be great!
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Post by davidtcb1 on Feb 4, 2012 17:56:28 GMT -6
You have many options. As a self employed person, I prefer having an independent CPA (not HR Block) to take all my stuff to. Of course you may end up spending as much as you made to pay him/her, you'll just have to inquire. A good one will be able to answer all these questions, but for the most part, he's going to want to know the gross of what you brought in and what you spent on expenses (boxes, shipping costs, etc. etc.) for the fish biz. Generally speaking, you'll pay taxes on the difference of the two. A formal payroll would be overkill, I'd just do an agreed percentage of the profits between the two of you, but that's for you to decide. Definitely keep all receipts on your expenses and you can also write off your mileage for miles related to the business (this year, it's $0.555/mi).
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Post by frankandnick on Feb 5, 2012 15:03:55 GMT -6
About how much does a CPA cost? I'm just looking for a rough number. like $500 or more like $1,000?
Thanks for the response.
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Post by davidtcb1 on Feb 5, 2012 15:12:07 GMT -6
You can shop it around. I file quarterly, so my guy figures my quarterly payment for me four times a year and then gets my return prepped and submitted, etc. each spring before April 15. He's about $300/year. I like it because if there's ever an issue with the IRS, audit type situation, etc., I can just point them to him.
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Post by fishguy on Feb 8, 2012 0:17:59 GMT -6
I have a side business and get taxes done for about $200. But "CPA" is a general term for someone who's a certified accountant. Make sure you talk to a tax specialist. You may owe state income taxes, too, btw. You also have to file an annual report with the state. Have you officially created the business and registered it with the state and federal governments? If not, you might want to report the income as personal and get it all straightened out before next year's taxes. But do talk to a pro. It'll be well worth the cost in the long run. Also, get an appointment now. They book up tight in March and April.
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Post by frankandnick on Feb 12, 2012 15:38:05 GMT -6
Q.Have you officially created the business and registered it.
A. No, i dont really see it as a business.
We havent sold much last year so this is are first year of really selling. Im more or less trying to figure out what i need to keep track of for next year and whats the best way to do things.
I dont think we would be making enough money to even be considered a business.
Frank just says I need to keep track of everything we buy\ sell and go to H&R Block.
But i feal that i need to do more than that
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Post by fishguy on Feb 12, 2012 18:55:18 GMT -6
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Post by davidtcb1 on Feb 13, 2012 17:33:31 GMT -6
It's always been my understanding that if the profit is less than $600 for the year, it's non taxable. But that's a question to ask.
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Post by jon carman on Feb 14, 2012 10:00:53 GMT -6
The answer is stated above. See a professional. If you don't show income and don't have good documentation then the IRS will be on your doorstep. If you don't have business ID's for business to business sales you have such as pet stores, then the local and state tax people will come knocking.
I am battleing this myself. When I don't charge sales tax to someone, I still have to pay it myself. My dad is my accountant and he wants to see a profit on the books of some sorts soon, so I don't do the side cash deals.
The club per say has nothing to do with any sales, but if one of us gets in trouble we might get monitored on the forum. So it is best if we all keep our nose clean to the best of our ability. I have done a lot of research and all I got out of it is the feds don't make it easy to know if you are doing what you should or not. It sucks!
Even if you lose money and don't have a profit, but you have sales, you still have to pay the state. I will show a loss this year, but will still have to fork a some money.
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