09:31 – I’m working on taxes today, and in particular on my business stuff. Revenues are easy enough to total.They’re all either transactions via PayPal or checks from colleges and universities, school systems, and so on. It’s expenses that are difficult and time-consuming to get a figure for. The straight purchase orders are easy enough. I can just use my corporate check register to total purchases from each of the vendors we use trade credit for. Some of the credit-card stuff is easy enough. For example, any credit card transaction with the vendor from whom we buy bottles is straightforward. It’s the mixed stuff that’s a pain in the begonia. For example, on a typical Sam’s Club run most of what we purchased was for personal use, but I also purchased stuff like T-shirt/Thank-you bags that we use in the kits, a gallon of 91% isopropanol that we use in the kits, and so on. So all that stuff has to be broken out.
Then there’s stuff I purchased as research materials and examples for the prepping book, which is all deductible. Some of that is in single orders, but a lot of it is also mixed with personal purchases, so it all has to be sorted out.
I want to get the state and federal taxes finished and in the mail in the next week or so. After that, Barbara and I may take a day trip or two up toward the mountains to check out various small towns that we might relocate to.
For example, on a typical Sam’s Club run most of what we purchased was for personal use, but I also purchased stuff like T-shirt/Thank-you bags that we use in the kits, a gallon of 91% isopropanol that we use in the kits, and so on. So all that stuff has to be broken out.
Captain Obvious here: When I was buying stuff that was deductible for business purposes with personal credit cards at Sam’s or Costco, I had them ring it up separately. Then the credit card transaction could be flagged in Quicken as the appropriate deduction category. Still do that today if I an buying stuff for my mom.
I considered that, but it’s not easy if you’re piling stuff in one cart. I thought about having us run separate carts, but that’s more trouble than it’s worth. It’s easier just to figure out what’s deductible on each register receipt.
RBT, I strongly suggest ringing up business and personal items separately, with separate receipts, preferably rung up on different business and personal credit cards. Yes, it’s somewhat of a nuisance at the time, but it’s less overall nuisance if you get audited, and less privacy violation. It’s also easier at tax time: just add up the statements for the one card, and that’s your business expenses. This advice comes from not only my own experience but from my accountant friend and my wife’s accountant friend.
Also, make sure you scan the cash register receipts into your computer for permanent storage. Typical receipts fade quickly, and the auditor disallowed all of my business expenses unless I could provide a legible-right-now receipt. (Never mind that cheap scanners weren’t available when we started the business; apparently I was expected to photocopy all business receipts in case I ever got audited years later.)
For the practical matter of keeping personal and business items separate in the cart, how about snagging a cardboard box from the front of the store and putting business stuff in the box and personal stuff straight in the cart?
Probably a good idea.
“…apparently I was expected to photocopy all business receipts in case I ever got audited years later.)”
So what are you saying here? That you were unable to fulfill this expectation at the time? Frankly, sir, we do not care for your insolence, impudence and snarky attitude and will be taking steps to illustrate for you how an advanced audit works in practice. One of your fellow snarky citizens to your northeast was just shown that we do not fool around, mister.
Didn’t I read that the Republicans are going to abolish the IRS? Sounds like a good first step to me.
I seem to recall all sorts of talk about the Republicans abolishing Obolacare if they were elected. Oddly, that talk seems to have stopped just about five months ago.
Didn’t I read that the Republicans are going to abolish the IRS?
I seem to recall all sorts of talk about the Republicans abolishing Obolacare if they were elected.
Double lol! Remember all those Redumblicans during the primaries? I’m abolishing the Dept. of Education, IRS, Obolacare, etc. Lying snakes! They have the House and Senate and are doing nada. The same lies will come out during the next primary. This time they’ll add they are going to reverse all of Odooshnozzle’s decrees.
There is absolutely nothing “odd” about the Stupid Half of the War Party doing nothing about fixing anything. Anyone who even has dreams about lying, treasonous bastards ever doing anything right from among those cretins ought to have their head examined. They’ve had several major opportunities over the past several decades to do the right thing and, oddly, they have not done so. Is that odd, or what? I think not. It’s to be expected.
Temps in the high 20s today, after they went above 60 yesterday and peeps were swanning around up here half-nekkid. We have had driving snow/sleet all night and all day today so fah. This fazes no one and all are out and about for the usual weekend errands, shopping and the big holiday weekend festivities galore. I guess the next big holidays are Mother’s Day and Memorial Day, when summuh begins, haha, and we all here in the U.S. of Amnesia celebrate our dead warrior heroes and how we wouldn’t be enjoying all this liberty and freedumb if it warn’t for them, etc., etc.
Maybe someday, in the distant future, the blinders will come off and peeps here will finally get it.
I second the reco on using separate cards to keep the business from the personal.
Since Costco only accepts AMEX, it won’t even cost you anything more. Ask them for another card on the same account. You should be able to get up to 5 at no additional cost. The card will have another name on it (I used my company name) and a different number, but will appear on your normal bill. It will be labeled, and have a separate area for that card number on your bill. Make one payment as usual.
I have done this with my “personal” card, my “internet purchases” card, my “business deductible or reimbursable” card, etc. It REALLY helps when it comes time to figure out where a receipt should go. At one point I was running up to $90k in business reimbursable thru my personal credit card, so I’ve worked this system extensively.
ProTIP- if you have a card that you ONLY use for recurring automatic payments, you won’t have the trouble of changing all those payments when your card number gets stolen, as that card number is never used in public. Saving this hassle is worth it.
Neat Receipts is a good hardware/software solution for scanning and archiving recpts. It also works well to archive pdfs of statements and tax documents. You can use it with an app on your phone that takes pix and stores them as pdfs too. My wife uses CamScanner or Scanbot to take the pix and upload them to the cloud, after which she moves them to a Neat Receipts folder for safekeeping.
As your business grows, it makes sense to start using some processes as the overhead of the process is less than the headache of your old manual system.
nick
Good points.
http://www.stripes.com/news/us/special-operations-troops-doubt-women-can-do-the-job-1.338486
Haters.
Costco will stop accepting AmEx as of March 31, 2016
http://blogs.wsj.com/moneybeat/2015/02/12/what-the-costco-amex-split-means-for-shoppers/
I have never personally set up a merchant account with them, but I have heard that American Express is one of the most expensive credit cards to do business with. Consumers love it, but businesses don’t care for their fees and hassles.
Abolish the IRS? I read an interview with some guy from the IRS who – entirely correctly – pointed out: The problem isn’t the IRS. The problem is a ridiculously complicated tax code. As long as you have a ridiculous tax code, you’re going to have to have an agency to enforce it. Make the taxes so simple that people can file their taxes on a postcard, and the problem is solved already.
” Consumers love it, but businesses don’t care for their fees and hassles.”
This is because, at their root, AMEX works for me, and VISA/MC work for the banks and merchants. AMEX is a charge card, V/MC is a credit card.
V/MC typically charge 1-1.5% on each transaction which comes out of the merchant’s end. AMEX charges (typ.)3% (although I’m sure Costco gets a deal). V/MC earn their profit on the backs of their “customers” in the form of fees and interest, AMEX earns on the backs of merchants.
The other big difference is in how fraudulent charges are handled, with AMEX being better for the cardholder, although this is coming into parity as V/MC have had to improve their customer service to compete.
I am extremely sad to hear that Costco and AMEX are parting ways.
nick
So an IRS guy says that the public’s perception of problems with the IRS is not caused by the IRS. And you were persuaded by that?
Drop me a line with your bank account info, Brad. I’ve got some investment opportunities for you, and it’ll be more efficient for me to access your bank accounts myself. You don’t have to worry about me being dishonest — I assure you I’m not.
“The problem is a ridiculously complicated tax code.”
Deliberately so. That IRS guy was being ingenuous. The tax code must then be applied and enforced by an ever-growing State organization designed primarily to steal from people and control them. Which is why, in these latter days, the organization has an armed division and SWAT teams. They can do their business via computers and technology, and they can show up at your door at 03:00 with suppressed AR’s and Glocks.
RBT: As a third generation small business owner, I’m going to second what other posters have said. Keep a second credit card, for business purposes and only for business purposes. Put the business purchases in a separate cart when you &/or the Mrs. go shopping for both types of goods. And scan the receipts / invoices so you’ll be able to go back after n years. Yes, it’s a PITA, but so is an IRS audit after they find single flaw, which gives them the teeth to dig deeper.
” Yes, it’s a PITA, but so is an IRS audit after they find single flaw, which gives them the teeth to dig deeper.”
Indeed. Their work is much like a cop’s or a detective’s; they can and will find flaws, if they want to, and make of your life a hell on earth. They’ve done a pretty good job on us for the past five years and yet we know they’re only tapping us with kid gloves by comparison to what they could do.
Yes, I have a personal axe to grind.
On this latest caper we did everything they told us to do, to a “T.” And then they fucked us anyway.
If you give me six lines written by the hand of the most honest of men, I will find something in them which will hang him.
I’ve been told by accountants, including non-IRS auditors, that accounting books always have mistakes and/or questionable entries. In fact, if the books are too clean, that’s a signal to do an in-depth investigation because they’ve been cooked. And, given that both the presence and the absence of mistakes provides justification for investigation or prosecution, it comes down to selective enforcement. If the government wants to fine or jail you or seize your assets, they’ll find an excuse.
As Pournelle says, this used to be a free country.
And as some unknown and probably forgotten third-rate actor said in a long-ago thriller-diller flick: “This was a great country–before the cities and lawyers.”
We’re all criminals now.
I hate the IRS.
But then I’m a hater.
🙂
Oh, and Mr. OFD, if you need money. Open up a pizzeria, refuse to cater a Gay wedding, and you’ll soon have around $900K in donations in a week. I can’t believe all those Gay hating RACIISTs donated so much money to that Indiana pizza shop. Haters all! I’m opening mine tomorrow. On Easter in the Name of Jesus! That should get me at least a couple 100 thousand more.
🙂
Excellent idea, sir!
Or a flower shop. Pizzerias are hot and noisy and greasy. Flowers smell nice. Chicks come in and hang out.
Actually I’d sell them the flowers but I’d be damned if I went and did the actual wedding and arrangements on-site. That would have to suffice. Ditto with the pizzas. We’ll deliver or you can come pick them up, but we ain’t hangin’ around, Bruce.
Chad wrote:
“I have never personally set up a merchant account with them, but I have heard that American Express is one of the most expensive credit cards to do business with. Consumers love it, but businesses don’t care for their fees and hassles.”
I used to have an Amex card, green first then gold. I’d see signs in many businesses saying that Visa and MC were more welcome. In a hotel in England there was a sign at reception listing the preferred payment methods: Cash was first, followed by other credit cards and cheques supported by a bankers card, with Amex at sixth and last position. The sign said that this order was to keep costs down. The Amex commission at the time was about double that for Visa and MC.
Then they introduced a yearly charge for the loyalty program *and* increased the annual card fee. While not large increases I was incensed at their greed and wrote to tell them so. Tey wrote back to say that their comission was comparble with the other cards, which was an aouright lie. So they ended up losing a customer who spent a fair bit on the card.
I’ve been thinking about a new aspiration for myself: I want people to come to me for advice. I’m an idiot who makes a lot of poor decisions in my own life, I’m vastly ignorant on a vast number of subjects, my judgment is questionable and my empathy is almost non-existent, and I work in fart jokes wherever I can and sometimes even where I can’t. I want people to know this, and nevertheless come to me for advice.
So, does anyone have any advice on how to make this come to pass?
“So, does anyone have any advice on how to make this come to pass?”
Well, several occupations come readily to mind…lawyer? Didn’t you go to law school?
Congressman or Senator or governor? Isn’t the incumbent asshole over in the Vampire State about to go to jail, hahahahaha? So there could be an opening right there.
English professor also comes to mind.
I am breaking OPSEC but, I took my CHL class today at the new gun range in Rosenberg. Along with #1 son. We both passed, me with a 250 out of 250 score on the B-27 target. I used my XDM .40 S&W pistol that produces really tight groups. The Easter weekend is definitely the time to take the class as there was only 3 of us. Usually there is 15 to 20 per class on normal weekends.
Now I’ve got to file my paperwork with The Great State of Texas, pay the state $140 and get the process rolling, fingerprints, etc. The son only has to pay $70 since he is a veteran (but he has to file his honorable discharge paperwork).
Congrats, Mr. Lynn!
But yikes, for that kinda money you could get yerself an FFL!
There is a misconception out there that the southern states have very free and open gun ownership laws but such is not the case, apparently.
Texas is weird. It is very free, with an emphasis on self reliance, personal responsibility, and personal property, right up until it ISN’T. Wherever that line is, crossing it can be dire.
One example, Houston has NO zoning. None. Building codes still apply, but no zoning. So community standards are enforced (where they are enforced) with ‘deed restrictions’ or CC&Rs. So ‘freedom’ right up until the HOA seizes your home because you owe them $1 in fines or late membership fees. [This was addressed after a particularly egregious case involving foreclosing on a Little Old Lady for a tiny past due sum.]
Death penalty state too. Kill someone here and we’ll kill you right back. Pretty good gun laws- ‘shall issue’, stand your ground, castle doctrine, and in TX you can shoot someone in defense of property. Your vehicle is an extension of your home, so you don’t need a CHL in the car. BUT NO open carry, except for long guns.
There are other quirks involving insurance, and mortgages, and we have Constables. which is hard to explain to people not from here.
No state income tax, and often a rebate on our Federal tax to get our state sales tax back. People complain about property taxes, but compared to CA, MA, or CT I think they are reasonable.
Oh, the contradiction of the evil republican redneck good old boy stereotype vs the reality of a Democrat run local .gov with Houston having the first openly lesbian mayor in the country.
And the same state that produces LITERAL rocket scientists also sends Sheila Jackson Lee to Congress. Go figure. Two Americas indeed.
nick
And let’s not forget “Keep Austin Weird.” That mentality. Mrs. OFD has assignments in TX fairly regularly and I served several sentences there decades ago when I did bad things for Uncle.
The people of San Antonio, however, took good care of Mrs. OFD and her krew when they got stranded there during the week of 9/11. Mrs. OFD sorta returned the favor upon arriving at Fort Hood hours after that p.o.s. murdered his fellow soldiers.
Lying snakes! They have the House and Senate and are doing nada.
There’s not much they can do without a Republican president since they don’t have 67 senators. Anything major will get vetoed, and won’t get overridden.
The problem is a ridiculously complicated tax code. As long as you have a ridiculous tax code, you’re going to have to have an agency to enforce it. Make the taxes so simple that people can file their taxes on a postcard, and the problem is solved already.
And the bulk of the tax code is for business taxes, not individual. And on the individual side, the bulk there are for business taxes on sole proprietors and the like.
So, if you really want a postcard tax form and to “abolish the IRS” you need to:
– eliminate corporate taxes
– treat all income (wages, interest, dividends, capital gains, carried interest, etc.) the same for tax purposes.
– eliminate all but the standard deduction
Boom. You’ve just put most of the IRS out of work.
Outstanding!
Boom. You’ve just put most of the IRS out of work.
Not gonna happen ever. Too many accountants would be put out of work.
And too many lawyers.
And too many political hacks, bums, losers, and criminal scum.
But I repeat myself….
Or, eliminate the income tax and replace with a national sales tax.
It has the advantage of taxing spending, and thus taxes those who work under the table and illegals.
Money is no good until you spend it.
unfortunately, I know they would more likely ADD a federal sales tax.
nick
unfortunately, I know they would more likely ADD a federal sales tax.
Or worse yet, a federal VAT tax plus the federal income tax.