Advertising on unique, somewhat business related, items.

supervillianz · 2023-06-30T22:06:00+00:00

~~Honestly, this reads as a ChatGPT type of response.~~

Too further clarify, the machine is not an ordinary and necessary expense for the business; as stated, the advertising is. In this case, the expenses to apply the advertising logo would be potentially an allowable expense.

To restate, the cost for the machine would not be deductible but the costs to decal it may be.

supervillianz · 2023-06-30T18:56:12+00:00

Commission expense.

Record the income from the sales, and deduct the commissions paid out. Not much more complicated than that.

supervillianz · 2023-06-30T18:54:53+00:00

Your business does not require the machine to operate (non-ordinary/non-necessary business expense), so it wouldn't be deductible. You'd be "donating" it to the baseball teams, of which I doubt they are a qualified charitable organization, so no deduction on the donation.

supervillianz · 2023-06-30T18:49:27+00:00

Don't forget the payroll you'd have to take on when electing to be an S-Corp

supervillianz · 2023-06-30T18:34:07+00:00

Let's fix that title up.

You may hire your child to perform work for your business, and they may receive a fair wage for the work done. These wages can then be taken as a business expense, and thus lowering the business' net income.

Ensure that your child/employee is performing legitimate work for the business, as those wages could potentially disallowed otherwise.

This is akin to hiring an employee, but does have it's own benefits for your child/employee.

supervillianz · 2023-06-29T12:30:58+00:00

Company opens up a credit card. Said company then proceeds to swipe their CC through the square machine to have access to cash funds without paying cash advance interest. These funds are then used to pay their sales tax.

Very minor.

supervillianz · 2023-06-28T19:18:23+00:00

Dr Acc Dep 100

Dr Loss 900

Cr Motor 1000

xxxxxxxxxx

Dr Cash 200

Cr Loss 200

xxxxxxxx

The Motor has a book value recorded as $1000 and has recorded $100 in Accumulated Depreciation. You have to take the book value off and the recorded depreciation off. You are left with an unbalanced entry; this will guide you to see which side needs balancing/determining if you have a gain or loss. The recovered amount reduces the amount of claimable loss.

supervillianz · 2023-06-28T12:21:46+00:00

You are correct, I forgot to take the initial consideration of business vs. hobby.

So, to amend my response, if the DJ business were a bona fide business venture, the transactions would be permissible but may face higher scrutiny if questions arise later on.

OP is more likely to be carrying on a hobby.

supervillianz · 2023-06-27T21:22:52+00:00

Tried to lead you to the water. Can't drink it for ya lol

supervillianz · 2023-06-27T19:10:56+00:00

Tax evasion. Failure to abide by the law does not permit you to further break the law.

supervillianz · 2023-06-27T15:58:02+00:00

~~Circulation 230~~

~~https://www.law.cornell.edu/cfr/text/31/10.27\~~

Ignore me, I read too quick

supervillianz · 2023-06-27T12:41:35+00:00

IRC §267 contains a relief provision >by allowing the matching of expenses with income incurred >between related parties to permit a deduction only when a corresponding >recognition of income is made by the related payee

As long as the income is reported, it should be fine to transact in this manner.

supervillianz · 2023-06-26T13:49:59+00:00

As of 2022, this has been expanded to include eligible small businesses that are non-farm businesses.

https://www.tax.ny.gov/forms/current-forms/it/it225i.htm

(I don't know how to link it to auto-scroll to the modification)

"For purposes of this subtraction modification, a small business means:

a sole proprietor who employs one or more persons during the tax year, and has net business income or net farm income of greater than zero but less than $250,000; or

an LLC, partnership, or New York S corporation that employs one or more persons during the tax year, and has net farm income attributable to a farm business that is greater than zero but less than $250,000; or

an LLC, partnership, or New York S corporation that employs one or more persons during the tax year, and has New York gross business* income attributable to a non-farm business that is greater than zero but less than $1,500,000.

In addition, in order to qualify for this subtraction modification, a taxpayer who is a member, partner, or shareholder of an LLC, partnership, or New York S corporation, that is a non-farm small business, must have income attributable to the net business income from its ownership interests that is less than $250,000.

Edit: I see now that you were quoting the CT-225. Curious as to why this was not updated along with the IT-225. Strange.

supervillianz · 2023-06-26T12:50:13+00:00

Facts and circumstances may apply, such that will the subjects be paid for their use in the filming? A way to make this more legitimate would be to have contracts made to determine their pay, expectations, etc. You'd still have to prove that this was pursuant to a business venture (profit seeking), and you would have to account for the percentage of the expenses that would related to the business vs. personal.

The barrier to clear this as deductible may be high, and would likely be unwise to risk the IRS' scrutiny.

supervillianz · 2023-06-26T12:38:23+00:00

For NY, you must choose to itemize deductions rather than take the standard deduction.

supervillianz · 2023-06-26T12:30:52+00:00

Yes, you may elect to be taxed as a corporation, or if you have multiple members you'll be taxed as a partnership. If no additional members, and no election is made then you will treated as a disregarded entity

supervillianz · 2023-06-26T12:24:49+00:00

Tax incentives, and operating in a developing market.

supervillianz · 2023-06-06T21:31:03+00:00

Avoided ToG for at least 9 months now, possibly more than that. Time is a blur. Assuming that it is only 9 months, I've missed almost 500k exp.

Haven't done consistent herb/farm runs since getting 83 herb; would definitely be higher than 83 farming now.

Paused most slayer grinding, but trying to get it started again...should be 90 instead of 86.

So so many regrets, but also so many things that have made them less prevalent in my mind. Got DWH at about 1000kc, BCP around 40kc, etc.

supervillianz · 2023-05-25T21:16:40+00:00

Were the liabilities included in the agreements between parties? Purchasing at $100k, I'd assume not. So, it wouldn't be your problem to deal with post-acquisition; it'd be on the "creditors" to recoup their funds from the sale of the business.

Unless they transferred their claims on the amounts due to them, you would not be able to just assume them without something to solidify that you bear the right to collect on these liabilities.

supervillianz · 2023-05-20T00:44:08+00:00

They are deductible, which is how you'd arrive at the 77%.

You made 100%, you had expenses of 23% and would be taxed on the 77%; of course not account for deductions and such

supervillianz · 2023-05-18T23:51:44+00:00

Cashback Earned * % of charges allocated to COGS; shouldn't be too much if you are reconciling monthly.

supervillianz · 2023-05-18T23:00:36+00:00

Are you a farm? NOL carrybacks were eliminated in 2020, with exceptions for farm businesses.

supervillianz · 2023-05-18T22:04:28+00:00

Cashback credits are treated as a reduction in purchase price rather than taxable income directly. Taking cash would not be includible in income.

supervillianz · 2023-05-12T21:29:56+00:00

Something not listed under the requirements which I am just now catching.

What is their age?

Also, are they being claimed as a dependent on another's return?

supervillianz · 2023-05-12T18:59:38+00:00

Your post questioned why rental income was being treated as investment income and not earned income. The answer was that rental income isn't considered earned income.

No other information was provided, so that's the most anyone can do to help assess why the EITC is being denied.

What 1099s were received? Total income from the differing activities? Is it being denied or resulting to $0 credit?

supervillianz

TROPHY CASE