Did Taxes Saturday,Declared Farm,got 3800.00 back!!!!

[gmendoza]

heehee! "I'm in da money!"

Went to go do taxes on Saturday and declared farm here in South Carolina. Didnt have to show reciepts,nor proof. Just my ledger,which I didnt bring,which they said i didnt need to bring it.Its just for tax purposes. Got alot of useful info from them for this year.

So now that we are getting this moolah,I can and will proceed with my catfish in a barrel,and other solar powered projects.

$3800.00 SMACKERS!!

 

[seedcorn]

Hope you can prove it if you are audited. If not, you will pay the $3800 back with penalties plus whatever else they will find in previous years.

 

[gmendoza]

Quote:
I do have a Ledger with all my stuff. I said this on my post.

 

[Poulets De Cajun]

This thread wont last long, but congratulations anyway!

 

[Katy]

Quote:
x2

 

[seedcorn]

Quote:
I do have a Ledger with all my stuff. I said this on my post.

Doesn't matter. Only thing that matters is that the IRS agent wants to accept it. You have to show a profit otherwise they will classify it as a "hobby". Good luck.

 

[SpringChickens]

Quote:
I do have a Ledger with all my stuff. I said this on my post.

Doesn't matter. Only thing that matters is that the IRS agent wants to accept it. You have to show a profit otherwise they will classify it as a "hobby". Good luck.

Here's what I remember from my accounting classes. To be classified as a business, you need to either have made a profit for 3 (4?)of the past 7 years or treat your business like a business. That means you need to maintain a separate checking account, keep ledgers, track all your income and expenses, etc. We were told that maintaining a separate checking account was the most essential of these steps.

Good luck and congrats on your return!!

 

[Poulets De Cajun]

Quote:
Huh! Thats odd. My tax man said that as a sole proprietorship, I am allowed to intermingle my finances in the same account, and DO NOT have to maintain a seperate business account.

 

[gmendoza]

Quote:
Doesn't matter. Only thing that matters is that the IRS agent wants to accept it. You have to show a profit otherwise they will classify it as a "hobby". Good luck.

Here's what I remember from my accounting classes. To be classified as a business, you need to either have made a profit for 3 (4?)of the past 7 years or treat your business like a business. That means you need to maintain a separate checking account, keep ledgers, track all your income and expenses, etc. We were told that maintaining a separate checking account was the most essential of these steps.

Good luck and congrats on your return!!

Uhh I do know this stuff. I have a LEDGER,separate bank account under our buisness licence name "Funny Farms" and my LEDGER has all my income and expenses tracked in it.

You know what?? I am happy,thats all that matters.My hard work and abilities paid off.
And I don care if this thread lasts for more than 5 seconds. I was just happy to share it with you BYC-ERS. Dont need downers on Monday tossing a fly in my soup.

 

[SpringChickens]

Quote:
Huh! Thats odd. My tax man said that as a sole proprietorship, I am allowed to intermingle my finances in the same account, and DO NOT have to maintain a seperate business account.

I'm sure your tax man knows more about it than I do from taking one accounting class - so listen to him, not me!!

I do know that you can get away with not having a separate checking account if all the rest of your ducks are in a row, or if you make a profit enough of the years you are in business. I think the checking account is just a major way to prove that this is actually a business and not a hobby to the IRS.