Author Topic: any accountants out there that i can ask a question?  (Read 490439 times)

Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1540 on: February 28, 2018, 11:32:28 PM »
Bump
Allocate it proportionate to the expense

Offline googwallet

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Re: any accountants out there that i can ask a question?
« Reply #1541 on: March 05, 2018, 11:47:41 AM »
Do I need to include my 1099-R with Distribution code R in my tax return? This was for a recharacterization of a Roth IRA contribution to Traditional IRA contribution. I already filed my taxes and I'm wondering if I need to amend them since I didn't include this.

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1542 on: March 07, 2018, 12:03:12 AM »
So basically I  am paid to buy stuff for companies  E.G. Company A gives me $1k to buy 300k worth of goods and ship it to them, they then just pay my credit card directly 300k and me 1k.

In the past I would just report the total amount paid to me by company A (in this case $1k) as profit on a schedule C.


Is this an acceptable way of doing it?

Am I better off writing 301K in gross receipts and 300k in cost of goods (and having them cut me a check, deposit it into my biz checking then pay credit card)?

Technically here is a reimbursement no?


Any guidance would be much appreciated, TIA!
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline churnbabychurn

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Re: any accountants out there that i can ask a question?
« Reply #1543 on: March 07, 2018, 06:08:04 AM »
So basically I  am paid to buy stuff for companies  E.G. Company A gives me $1k to buy 300k worth of goods and ship it to them, they then just pay my credit card directly 300k and me 1k.

In the past I would just report the total amount paid to me by company A (in this case $1k) as profit on a schedule C.


Is this an acceptable way of doing it?

Am I better off writing 301K in gross receipts and 300k in cost of goods (and having them cut me a check, deposit it into my biz checking then pay credit card)?

Technically here is a reimbursement no?


Any guidance would be much appreciated, TIA!
The way you are doing it now you are looking at the 300k as a loan, and the one k as an interest payment?
That might be acceptable, but I would see the transaction more as a purchase and sale. - they are paying for your service in sourcing the goods.

I'm pretty sure there is specific guidance to dropshippers (definitely on a state level). Are you droppshiping?


Il just say that them paying your credit card doesn't necessarily make it any less compensation to you...

Offline Jack out of the box

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Re: any accountants out there that i can ask a question?
« Reply #1544 on: March 07, 2018, 06:52:26 AM »
The way you are doing it now you are looking at the 300k as a loan, and the one k as an interest payment?
That might be acceptable, but I would see the transaction more as a purchase and sale. - they are paying for your service in sourcing the goods.

I'm pretty sure there is specific guidance to dropshippers (definitely on a state level). Are you droppshiping?


Il just say that them paying your credit card doesn't necessarily make it any less compensation to you...
I would think that the 1K may be a commission. Nobody is really lending money here. 
Alternatively, he may be buying merchandise for 300K and selling for 301 with a 1K net profit. His customer paying his credit card bill directly just serves to cut out a few steps in the processing.
Just my unprocessed thoughts.  :)

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Re: any accountants out there that i can ask a question?
« Reply #1545 on: March 07, 2018, 07:32:54 AM »
Il just say that them paying your credit card doesn't necessarily make it any less compensation to you...
+1

It's great to find areas of agreement between myself and CBC. ;)
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Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1546 on: March 07, 2018, 08:57:15 AM »
The way you are doing it now you are looking at the 300k as a loan, and the one k as an interest payment?
That might be acceptable, but I would see the transaction more as a purchase and sale. - they are paying for your service in sourcing the goods.

I'm pretty sure there is specific guidance to dropshippers (definitely on a state level). Are you droppshiping?


Il just say that them paying your credit card doesn't necessarily make it any less compensation to you...
Shipping straight to this company yes.   Exactly - up until now I've been kinda looking at it as I'm purchasing the product on their behalf, then getting reimbursed, as opposed to selling them the product...
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1547 on: March 07, 2018, 08:58:55 AM »
I would think that the 1K may be a commission. Nobody is really lending money here. 
Alternatively, he may be buying merchandise for 300K and selling for 301 with a 1K net profit. His customer paying his credit card bill directly just serves to cut out a few steps in the processing.
Just my unprocessed thoughts.  :)
the 1k is most definitely commission, question is if it's acceptable to continue considering it a reimbursement... And not reporting the gross sales
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline AtallD

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Re: any accountants out there that i can ask a question?
« Reply #1548 on: March 07, 2018, 09:46:27 AM »
So basically I  am paid to buy stuff for companies  E.G. Company A gives me $1k to buy 300k worth of goods and ship it to them, they then just pay my credit card directly 300k and me 1k.

In the past I would just report the total amount paid to me by company A (in this case $1k) as profit on a schedule C.


Is this an acceptable way of doing it?

Am I better off writing 301K in gross receipts and 300k in cost of goods (and having them cut me a check, deposit it into my biz checking then pay credit card)?

Technically here is a reimbursement no?


Any guidance would be much appreciated, TIA!

I think the question boils down to whether or not you are acting as an agent of the Company.

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1549 on: March 07, 2018, 03:31:49 PM »
I think the question boils down to whether or not you are acting as an agent of the Company.
Clearly am no?
“To avoid criticism say nothing, do nothing, be nothing.”


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Re: any accountants out there that i can ask a question?
« Reply #1550 on: March 07, 2018, 03:43:32 PM »
Clearly am no?
Could you make that argument to the banks if the company wouldn't pay your CC bill?
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Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1551 on: March 07, 2018, 04:01:33 PM »
Could you make that argument to the banks if the company wouldn't pay your CC bill?
not understanding, can you elaborate?
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Re: any accountants out there that i can ask a question?
« Reply #1552 on: March 07, 2018, 04:37:48 PM »
not understanding, can you elaborate?

The question was raised:
I think the question boils down to whether or not you are acting as an agent of the Company.

To which you stated:

Clearly am no?

And I am saying that one would have to look at independent facts to make that determination. Are you acting as ידא אריכתא of the company, which means that they are responsible for your actions? Do you have any contract outlining your relationship? Are any third parties you are buying from aware that you are acting as an agent?
I've been waiting over 5 years with bated breath for someone to say that!
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Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1553 on: March 07, 2018, 05:04:34 PM »
The question was raised:
To which you stated:

And I am saying that one would have to look at independent facts to make that determination. Are you acting as ידא אריכתא of the company, which means that they are responsible for your actions? Do you have any contract outlining your relationship? Are any third parties you are buying from aware that you are acting as an agent?

Do you have any contract outlining your relationship? No  - though one can be drawn up..


Are any third parties you are buying from aware that you are acting as an agent? - No.
“To avoid criticism say nothing, do nothing, be nothing.”


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Offline eliteflyer

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Re: any accountants out there that i can ask a question?
« Reply #1554 on: March 12, 2018, 10:37:16 PM »
I moved from New York to Florida mid-2017. I have one W-2 from my New York employer ("Old W-2") and one W-2 from my Florida employer. Old W-2 includes a lump sum paid out for accrued vacation over the course of my old employment. The relevant pay-stub pay-period and lump-sum payment occurred after I moved to Florida. Is there any basis to classify said lump-sum as "Non-Resident" New York income?

Offline ushdadude

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Re: any accountants out there that i can ask a question?
« Reply #1555 on: April 11, 2018, 08:53:31 PM »
does it make more sense to take out a loan or sell an investment to pay taxes? the interest on the loan would be less than the capital gains tax on the investment

Offline ckmk47

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Re: any accountants out there that i can ask a question?
« Reply #1556 on: April 11, 2018, 09:03:13 PM »
does it make more sense to take out a loan or sell an investment to pay taxes? the interest on the loan would be less than the capital gains tax on the investment
You should also factor in the value of keeping the investment. Is this an investment you'd want to sell soon anyway? Or something you'd like to keep longer?
Then the loan to pay the taxes can be thought of as a margin loan against the investment - which sounds like the right choice.
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Offline ushdadude

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Re: any accountants out there that i can ask a question?
« Reply #1557 on: April 11, 2018, 09:07:10 PM »
You should also factor in the value of keeping the investment. Is this an investment you'd want to sell soon anyway? Or something you'd like to keep longer?
Then the loan to pay the taxes can be thought of as a margin loan against the investment - which sounds like the right choice.

If it keeps performing the way it's been performing, i would want to keep it.

Offline Yehuda25

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Re: any accountants out there that i can ask a question?
« Reply #1558 on: April 11, 2018, 09:55:15 PM »
If I file a few days late, but don't owe any money, is there a fine?
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Offline David R

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Re: any accountants out there that i can ask a question?
« Reply #1559 on: April 11, 2018, 10:06:35 PM »
If I file a few days late, but don't owe any money, is there a fine?
The penalties for filing a Federal tax return late and paying late are computed based on how much tax you owe. If you owe zero then the calculation comes out to zero. I am not an accountant. I've been filing my tax returns approximately 3 years late for the last several years and have never had a penalty.
« Last Edit: April 11, 2018, 11:01:42 PM by David R »