Forum Moderators: phranque
It always seems this time of year is either a frugal attempt at collecting next years income today, or going on some mini spending spree.
Which are you doing?
MQ
Since you went out and did the same last year (took lots of expenses into the previous year), now you need to do the same this year just to zero out the effect.
1) The printer is $1000 off if purchased by Dec. 31
2) By purchasing the new printer, I do not pay tax on the profits I'm using to buy it
3) The Section 179 deduction was increased this year, meaning I can deduct immediately the cost of equipment purchases, instead of having to depreciate them. Last year, this deduction was capped at $24K. This year, the section 179 election was increased to $100K, due to the 2003 Jobs and Growth Tax Relief Act.
Important to WebmasterWorld self-employed:
Included in the new law, and of particular interest to self-employed people here at WW, The Act treats off-the-shelf computer software as qualifying property, so you can deduct the cost of software used in your business immediately!
Hope that helps save on your taxes!
WFN :)
I'll be thinking of you guys at the craps table while we go over 2004 online strategy...(now THATS the way to have a business meeting!).
Oh...and I put off billing in December entirely until next year...I hope 2004 is as much fun as 2003 was. ;)
EquityMind
I'm trying really hard to defer this month's income to next year. So I have zero cash flow right now! Makes for a frugal holiday, but a nice January - and a deferred tax bill.
I have been looking for an excuse to add one some more computers and printers. Newegg here I come w00h00!
Was introduced to the Herman Miller Chair at Pubcon in Boston - at the Windham. They're on sale right now.
No. At least not in the US. You could deduct your expenses and a small portion of your mileage (if you go to the charity to do the work).
Create a C-corp with a non-calender fiscal year (say July-June) .At the end of the personal tax year( Jan-Dec) shift your income to the c-corp (say as marketing fee) thus reducing or in some case eliminating your personal income!.
At the end of the C-corp's fiscal year you can again shift the income back to you (say as consulting fee) ...In theory you can do this back and forth thus defering tax for years!
This is legitimate in theory and you can also play the above with multiple c-corps and LLC's but as i said its pushing the limit and i am too much of a coward to do it :)
If you estimated, say $20000 taxes for the year, paid $5000 for the first 3 quarters but now know you’ll only owe $17000; can you pay $2000 for the fourth quarter or must you still pay $5000 and wait for a refund.
Thanks
Yes.
No worries for me!
No - April 15 is the deadline for filing all the forms. You can get extensions past that, though.
She just got back tonight from opening a brand new office in the north part of Southern California just in time to expense a lot of the costs.
You can pay whatever you want to pay, either under or over the estimated amount due. That doesn't mean you will avoid paying interest to the IRS if you end up owing more than the $17K. Lets say your estimate of $17K was under by $1K and the total of your estimated payments ($17K) is not equal to or greater than 90% of your previous year's tax bill they will charge interest on the $1K you underpaid by. The IRS is pretty good about all this as long as you file on time and try to pay, in the end all they want is their money and if you don't mess around with them they stay friendly.
The tax return is just an added benifit ;o)
