What records to I need to keep track of for taxes?

Status
Not open for further replies.
U

ubaidabcd

Banned
Dec 12, 2006
1,030
7
0
I just having invoices from web hosting, billing reports from PPC accounts, anything else? What about stuff where you don't get an invoice for, such as paying a webmaster to get a banner on their site? Do you just make up an invoice? What about a website you had created from somebody, no invoice, is a PayPal transaction enough?


Anything else?


thanks
 


The best advice is don't seek tax advise from a forum. Get a tax professional.

That being said, keep a log book of you income and expenses. Put any invoices you get into a folder for each month of the year. You should have some type of invoice for anything you paid money for, paypal print out should be fine. And if you haven't looked into starting an llc or corparation you should.

Oh and you probably can't write off alcohol, pot or LSD.
 
*scratches off alcl/pot/lsd from write-offs*

When should you look into a LLC? I've started making about $3K a month in net the last couple months. Don't think that's enough to qualify for a LLC, or whatever an LLC is. Being how volatile the market is, don't know how much longer my "wealth" is going to last. Not only that, atleast 30% of that is towards taxes. This is my first official attempt at IM so after this, I don't know if I'll continue to be able to make money.

*Starts looking for full time job*
 
also, do tax professionals charge an upfront fee? or do they have free consultations? any advise as to who I should go to? I don't want to get ripped off, should I find somebody on craigslist? or go to the rip-offs? H&R Block ,etc...etc..
 
illkity said:
The best advice is don't seek tax advise from a forum. Get a tax professional.
Click to expand...

Couldn't have said it better myself.

I formed an S-corp quite a few years ago, when I was first getting started and haven't looked back. I got the advice of a CPA and still use him each year for my persoanal and business taxes, as well as advice throughout the year.

I talked to a couple of lawyers who wanted between $500 and $1000 to file the papers for me, in addition to the filing fees. I did it myself for just the filing fees. I think it costs me about $125 a year to keep it going.

Having the corporation and having a CPA do my taxes for me saves me more than enough to offset what it costs.

Do get some professional advice. The few bucks it costs you can save you a ton in the future.
 
illkity said:
The best advice is don't seek tax advise from a forum. Get a tax professional.
Click to expand...


Yep. Go see a CPA dude. It'll cost ya like $20 if you have your taxes (and its nothing too crazy).

In short: everything. Money in, money out. Have a record.
 
I looked at filing my own corporation papers online, but figured, since it's my livlihood, I don't want to mess it up. SO I paid the big bucks for some doofus to do it right. (I even have my own stock certificates now...)

When it comes to taxes or the law, don't do it yourself if you're making big bucks.
 
Yep can't say it enough - find a tax professional (CPA) to help get you setup and to advise the best corporation type for you. Tax laws for LLC vs S-Corp vary from state to state so don't just do what someone else on the internet did. You may pay $100-200 for an initial consultation but its fucking worth it. Get references first.
 
I'm not making big bucks by any means, probably in net worth $3K a month at this time. Although I'll still hire a CPA, since I have no idea how any of this works. I've filed my own 1040 taxes from work, but that's all.
 
I just don't pay taxes, it works out well for me

VOTE RON PAUL (before I go to jail please)
 
ubaidabcd said:
or go to the rip-offs? H&R Block ,etc...etc..
Click to expand...

The retards...I mean, tax professionals at Jackson Hewitt and H&R Block get no more than a few weeks' training before they are turned loose to wreak havoc on the public's financial documents. You don't want to trust them or their software. Plus, you're going to pay an arm and a leg for the privilege.

You should consult a CPA. The money (and headache) that a good CPA can save you will most likely more than pay for the cost of his/her services.

I learned a very simple but effective strategy a few years back. At the beginning of the year I label 12 folders January thru December. Anytime I have a receipt or expense I print it out and throw it in there. Even though I have an electronic copy, the paper copy gives me a warm and fuzzy feeling inside and allows me to just hand it over to my CPA when he needs it. Makes everything tons easier.
 
See, I'm lazy and barely every do my own statistics every 2 weeks to see if I'm losing or profiting in a campaign. Even if I'm losing I'm usually thinking I'll just let it run to see how it does.

I guess, when tax season comes around and I have to hire a CPA, I'm going to be in a serious mess.

Doesn't anybody think making $3K a month is not much to alert the IRS? Can I not just do this myself at this time? Hell, I don't keep track of shit, and just spend it as it comes in. I just got back from a vacation from Cali, and got paid yesterday and gonna get paid again next Monday.

I have no self-control over my finances!! I'm just hoping that the IRS will put me on a payment plan. They don't have a deadline do they? If you don't pay us by a certain time we'll put you in jail??

Like I said, I'm making chump change, $3K a month. I'm starting to look for a full time job, I just don't understand how you can keep studying IM like I do 18/hrs a day and expect to get a full time job, knocking off your most productive (not-getting-drunk) hours.

Anyway, that's what I'm planning on doing getting a "normal" full-time job, so that can help me pay off the taxes.

Not sure what else to do. I don't keep track of a damn thing, besides what's recorded on my bank statements, and use my debit card for just about everything.
 
If you are making a taxable profit every month, you are supposed to file and pay estimated taxes throughout the year. You are your own employer. If you had a W2 job, your employer wouldn't just hold all the taxes all year long. Same goes with you. That's why need a Pro.

Plus you also have to pay your own payroll taxes- FICA, both halves. that's my biggest tax expense. You could owe ZERO on INCOME tax but still owe THOUSANDS in SE ( self employment) tax.

I do my best to have the lowest income as possible on paper. I do things like make certain expenses on credit in Decemeber, for example. But it does catchup at some point.
 
JohnCJackson said:
If you are making a taxable profit every month, you are supposed to file and pay estimated taxes throughout the year.
Click to expand...

Thanks, I didn't know that, that makes things simpler it won't end up looking like a huge amount at the end of the year. I was just going to wait for April and hand whatever I have to a CPA.

Can, I get this CPA from craigslist? I don't want to go to an expensive place or a firm. What kind of credentials should I look for? I should look for a CPA that has experience in handling taxes for online businesses correct? Anything else?
 
ubaidabcd said:
Doesn't anybody think making $3K a month is not much to alert the IRS?
Click to expand...

Two years ago the IRS started really cracking down on people making sub-$50,000 per years because they were noticed that many of these people thought they could fly under the radar. I remember seeing an article in Money or Forbes about it while getting my tires rotated. They were targeting waiters/waitresses/bartenders and self-employed people pretty hard. Those are people that ordinarily make around $30k per year so I wouldn't bet on the IRS not taking note just because you make around $36k.

And this is just me, but I wouldn't feel comfortable finding a CPA on CL. I found my guy by bullshitting with a friend of mine's dad who is very wealthy and he recommended his guy. He was MUCH cheaper than I thought he would be.
 
geekcognito said:
And this is just me, but I wouldn't feel comfortable finding a CPA on CL. I found my guy by bullshitting with a friend of mine's dad who is very wealthy and he recommended his guy. He was MUCH cheaper than I thought he would be.
Click to expand...

Yeah, the responses I've gotten from CL so far haven't been helpful at all. Besides, "call me", and we'll give you a free consultation. Some of them are asking the same questions I made in my post. I've gotten a couple prices from $75/hr, $150 per quarter, $400 for end of year.

What's a good price range? Where else can I go besides CL should I go to a firm?


Thanks
 
ubaidabcd said:
Yeah, the responses I've gotten from CL so far haven't been helpful at all. Besides, "call me", and we'll give you a free consultation. Some of them are asking the same questions I made in my post. I've gotten a couple prices from $75/hr, $150 per quarter, $400 for end of year.

What's a good price range? Where else can I go besides CL should I go to a firm?


Thanks
Click to expand...

I'd have to look but I think my total for the year last year came out to be around $600, but I'm rounding up.

It may seem like a lot, but I bet he saved me $1500 in deductions; not to mention the peace of mind and my sanity. YMMV, though. I think my guy is a little on the high end.

I can't really speculate on your return but from the way you speak it doesn't seem as though it's going to be especially difficult.

I've done my own taxes every year before and I can recommend Turbo Tax. It's pretty simple to use and if you take your time it will actually be difficult to make a mistake. You may just want to try picking up that software at tax time and giving it a go yourself.

But I'd try to go back and dig up every expense and income through the year now, though. It will make it infinitely easier when you get started.

But if you do go get a CPA, I'd definitely go with a recommendation of someone you trust (and that is bankin'!).
 
All receits and milage. Business being brought up on a trip is classified as a tax write-off.
 
Status
Not open for further replies.
Top Bottom