Tax / Accounting question - GoFuckYourself.com

Sosa · 06-11-2004, 11:41 AM

Ok got a few questions here if anyone can answer or give me any input. First off I'm single and of course self employed so my taxes suck ass. I just got done talking to my accountant which said I'm gonna have to pay in like 40% of my net income after my deductions for this year if I keep my sales where I am right now. Says I can save $3500 or so off that if I s-corp and pay a lawyer $1000 or so to do that.

I can also go buy a new vehicle and write off like 75% of it and save money on taxes that way and just pay to tax/license it here in Nebraska which fucking sucks ass ($2500 for every $25000 or so spend)

Do I just go buy a new tahoe/danali/escalade and s-corp?
Or S-corp and pay whatever taxes are left.

What would you guys do?

genomega · 06-11-2004, 11:53 AM

Your accountant is correct.

Sosa · 06-11-2004, 11:59 AM

Quote:

Originally posted by genomega
Your accountant is correct.

Well I would hope he was correct, now what option would you go with?

I already have a 00 Escalade so I really don't need a new one. But if I'm spending money I might as well get something out of it and not just send it to the gov.

DO I just buy it and resell it?

Elli · 06-11-2004, 12:00 PM

Quote:

Originally posted by Sosa
Well I would hope he was correct, now what option would you go with?

I already have a 00 Escalade so I really don't need a new one. But if I'm spending money I might as well get something out of it and not just send it to the gov.

DO I just buy it and resell it?

I've heard it's better to lease a business car...

ace0r · 06-11-2004, 12:03 PM

Quote:

Originally posted by Elli
I've heard it's better to lease a business car...

Not if he's planning on using the accelerated depreciation loop for a gas guzzler. He can actually claim more than the 75% as long as the SUV's gross is 6000 lbs.

Go for a new SUV, sell the caddy

Carlito · 06-11-2004, 12:08 PM

Quote:

Originally posted by Elli
I've heard it's better to lease a business car...

Yeah, lease a limo or something, can't hurt right?

Carlito · 06-11-2004, 12:10 PM

Quote:

Originally posted by Carlito
Yeah, lease a limo or something, can't hurt right?

btw, this is exactly why companies run their exec's around in leer jets, limos, and helicopters.

Sosa · 06-11-2004, 12:10 PM

Right, I was looking a new SUV for sure if I was to go that way.

gornyhuy · 06-11-2004, 12:16 PM

Look into the massive tax free and tax deferred retirement investment options you have - set up a corp or llc and and you can put a big old chunk into investment accounts.

Sosa · 06-11-2004, 12:18 PM

Quote:

Originally posted by gornyhuy
Look into the massive tax free and tax deferred retirement investment options you have - set up a corp or llc and and you can put a big old chunk into investment accounts.

I plan on doing a s-corp for sure. LLC won't happen because I'm the only worker and my accountant said there had to be 2 people involved for that?

The retirement thing is something to think about also, I have nothing like that started. Any webpages I can read about that?

SexxxyChat-T · 06-11-2004, 12:40 PM

Quote:

Originally posted by Sosa
I plan on doing a s-corp for sure. LLC won't happen because I'm the only worker and my accountant said there had to be 2 people involved for that?

The retirement thing is something to think about also, I have nothing like that started. Any webpages I can read about that?

If you file in Nevada you can have a 1 person LLC, so it depends on the State you file in, I think most States allow 1 person LLC's now.

cool1g · 06-11-2004, 01:02 PM

well you are only supposed to be able to take that SUV tax deduction if you work in an industry where you need transportation - i.e. real estate.

if you every got audited i don't think webmaster would cut it...i'd check with your accountant on that...

the good thing about being incorporated is that if you make say, $100K this year, you pay yourself $40K salary....the $60K remaining you pay as a dividend...and therefore you don't have to pay the 9% social security/unemployment tax BS on the $60K - that adds up and more than pays for the incorporation costs...

Lighter · 06-11-2004, 01:15 PM

another reason to do find a good offhsore incorporation company

Sosa · 06-11-2004, 01:28 PM

Quote:

Originally posted by cool1g
well you are only supposed to be able to take that SUV tax deduction if you work in an industry where you need transportation - i.e. real estate.

if you every got audited i don't think webmaster would cut it...i'd check with your accountant on that...

the good thing about being incorporated is that if you make say, $100K this year, you pay yourself $40K salary....the $60K remaining you pay as a dividend...and therefore you don't have to pay the 9% social security/unemployment tax BS on the $60K - that adds up and more than pays for the incorporation costs...

I have other business projects then just webmaster. I travel quite a bit for the others.

collegeclam · 06-11-2004, 01:32 PM

You become an S-Corp by filing form 2553 within 75 days of incorporation. whether or not you need to pay a lawyer anything to fill in forms for you, is up to you. a lot of accountants and lawyers make a killing by charging retards an obscene amount of money for filling out a simple form you can download from irs.gov and submit yourself. perfect example: an ss-4 form used to apply for an employer id number aka tax id.

If you write off a vehicle, it must be over a particular weight and used strictly for transporting stuff crucial to work...real estate people get away with this because they carry "for sale" signs.

leasing a company car, thats probably different.

the IRS treats a single member llc as a sole proprietor, unless that single person llc has employees. in that case, the single member llc will need to file a 940 and 941. and if that person has agricultural employees, they file a 943.

collegeclam · 06-11-2004, 01:35 PM

Quote:

Originally posted by Sosa
I plan on doing a s-corp for sure. LLC won't happen because I'm the only worker and my accountant said there had to be 2 people involved for that?

The retirement thing is something to think about also, I have nothing like that started. Any webpages I can read about that?

your accountant is 100% wrong. it doesnt matter what state youre in if you want a single member llc. taxwise: multimember llcs are treated as partnerships; single member llc (without employees) treated as sole proprietors.

get a new accountant, because yours is obviously not up to date with the current irs news.

Sosa · 06-11-2004, 01:44 PM

Quote:

Originally posted by collegeclam
your accountant is 100% wrong. it doesnt matter what state youre in if you want a single member llc. taxwise: multimember llcs are treated as partnerships; single member llc (without employees) treated as sole proprietors.

get a new accountant, because yours is obviously not up to date with the current irs news.

Thx for that info, I should go talk with another accountant about this and see what they say and what numbers they come up with.

Sosa · 06-11-2004, 01:47 PM

collegeclam, you happen to have any IM programs that I could chat with you on?

Sosa · 06-11-2004, 02:32 PM

anyone else have any input? Maybe KRL?

06-11-2004, 11:41 AM	#1
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	Tax / Accounting question Ok got a few questions here if anyone can answer or give me any input. First off I'm single and of course self employed so my taxes suck ass. I just got done talking to my accountant which said I'm gonna have to pay in like 40% of my net income after my deductions for this year if I keep my sales where I am right now. Says I can save $3500 or so off that if I s-corp and pay a lawyer $1000 or so to do that. I can also go buy a new vehicle and write off like 75% of it and save money on taxes that way and just pay to tax/license it here in Nebraska which fucking sucks ass ($2500 for every $25000 or so spend) Do I just go buy a new tahoe/danali/escalade and s-corp? Or S-corp and pay whatever taxes are left. What would you guys do?

06-11-2004, 11:53 AM	#2
genomega Confirmed User Join Date: Feb 2002 Location: NW Florida Posts: 1,190	Your accountant is correct. __________________ No Jerk TGP Gallery Monitor MoneyBookers

06-11-2004, 12:16 PM	#9
gornyhuy Chafed. Join Date: May 2002 Location: Face Down in Pussy Posts: 18,041	Look into the massive tax free and tax deferred retirement investment options you have - set up a corp or llc and and you can put a big old chunk into investment accounts. __________________ icq:159548293

06-11-2004, 01:02 PM	#12
cool1g Confirmed User Join Date: Sep 2002 Location: Hollyweird adjacent Posts: 977	well you are only supposed to be able to take that SUV tax deduction if you work in an industry where you need transportation - i.e. real estate. if you every got audited i don't think webmaster would cut it...i'd check with your accountant on that... the good thing about being incorporated is that if you make say, $100K this year, you pay yourself $40K salary....the $60K remaining you pay as a dividend...and therefore you don't have to pay the 9% social security/unemployment tax BS on the $60K - that adds up and more than pays for the incorporation costs... __________________ InterG Media affiliate network (dating, pay per call) EDM Life Affiliates Cash In

06-11-2004, 12:10 PM	#8
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	Right, I was looking a new SUV for sure if I was to go that way.

06-11-2004, 01:15 PM	#13
Lighter Confirmed User Join Date: Oct 2003 Posts: 207	another reason to do find a good offhsore incorporation company

06-11-2004, 01:32 PM	#15
collegeclam So Fucking Banned Join Date: Mar 2003 Location: philadelphia Posts: 239	You become an S-Corp by filing form 2553 within 75 days of incorporation. whether or not you need to pay a lawyer anything to fill in forms for you, is up to you. a lot of accountants and lawyers make a killing by charging retards an obscene amount of money for filling out a simple form you can download from irs.gov and submit yourself. perfect example: an ss-4 form used to apply for an employer id number aka tax id. If you write off a vehicle, it must be over a particular weight and used strictly for transporting stuff crucial to work...real estate people get away with this because they carry "for sale" signs. leasing a company car, thats probably different. the IRS treats a single member llc as a sole proprietor, unless that single person llc has employees. in that case, the single member llc will need to file a 940 and 941. and if that person has agricultural employees, they file a 943.

06-11-2004, 01:47 PM	#18
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	collegeclam, you happen to have any IM programs that I could chat with you on?

06-11-2004, 02:32 PM	#19
Sosa In Tushy Land Join Date: Oct 2002 Location: Nebraska Posts: 40,149	anyone else have any input? Maybe KRL?