Have you done your 2009 taxes yet?

[miketpowell]

^ You have to amortize the equipment/purchases out over a yearly schedule. But if you bought one every year, you'd be saving a shit ton of money that was otherwise going to the gubbmint. In the long run.

Related COGS and other expenses of running the business could be deducted in full yearly tho.

That was my understanding of it as well.

One of the things I've been pondering is the tax ramifications of prepaying media buys by a large amount prior to Dec 31st to reduce tax liability for the current year. I really can't understand how it could legally reduce your tax liability since the moment you buy it it should be considered an asset of some sort and not actually change your companies assets and thus not reduce your tax liability. The same as a business couldn't stock up on inventory prior to the end of the year to reduce tax liability, unless the inventory they bought fell significantly in value before the end of the year as well.

Anyone have any clues as to how prepaying a media buy could legally reduce your tax liability? Maybe I'm looking at it wrong and there is some reason you can claim a company owing you 100k in media is in no way an asset that must be counted on a balance sheet.

 

[JonesersRX7]

you all bring some valid points up about it.

I'll have to go back to my CPA and find out for sure. Thanks for bringing up some of the points so that I know what to ask when I call her up.

If your CPA isn't bringing ideas to you to create more deductions it might be time to start interviewing more CPA's for next year.

 

[davidb]

Don't worry if you are a procrastinator - no problem. That's what an extension is for - then you can wait until Oct. 15th!


If you don't have the cash to pay what is due- they will bill you - file the correct form and you can set it up with installment payments. Yes there may be some penalties involved.

Of course none of this is recommended, but for valid and also lazy reasons people extend - and then procrastinate longer or finish getting their shit together if it was a real reason besides being lazy.

 

[eliquid]

Don't worry if you are a procrastinator - no problem. That's what an extension is for - then you can wait until Oct. 15th!


If you don't have the cash to pay what is due- they will bill you - file the correct form and you can set it up with installment payments. Yes there may be some penalties involved.

Of course none of this is recommended, but for valid and also lazy reasons people extend - and then procrastinate longer or finish getting their shit together if it was a real reason besides being lazy.

Not sure what you mean, I have plenty of money to pay the taxes due on time, but wanting to save up some of that monies and buy some offline ventures that could bring in revenue later.. but the quarterly time lines is fucking me up trying to do it all in cash.

 

[davidb]

Not sure what you mean

They were just general statements for those waiting until the end to file, not directed at anyone.