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Subject: taxes

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Jim    Posted 02-14-2019 at 13:21:41 [URL] [DELETE]        [Reply] [Email]  
  • taxes
  • My point was mainly the simplicity that was supposed to be done with a simple postcard is total BS. Most local IRS offices are now permanently closed and the nearest one for me is 100 miles away and you must make an appt first. I have tried for hours to reach by phone at different IRS numbers and the prompts just simply take you around in circles. They don't want to talk to anyone. I don't mind waiting my turn but can never get to the point I am on hold.
    Mine is a simple question that one of you may know. I was in the livestock business but not since 2017. However, in 2018 I started selling off my assets related to the business such as gates, wire panels, fence posts and the like. They are all cash sales but I don't want to hide anything. I have decided to start buying and selling farm equipment but need to set up and file a schedule C rather than the ususal F for 2018. Does anyone know if I just value everything at the beginning of 2018 and use it as my beginning inventory for figuring cost of goods sold or some other procedure? I finally called my local congressman and he is to get back with me. thanks for any help.

    Kimberly    Posted 02-19-2019 at 21:28:19 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • Cash sales; don't report this. If you feel guilty about not paying taxes then take the tax amount you would have to pay and give it to a local charity or food bank. Ever since I heard that Mobile-Exxon got a $500 million tax refund and they had profits of 16 billion dollars... well, seriously, you are going to give the government money you don't have to? Just the way I feel about it.

    Jim    Posted 02-19-2019 at 21:56:40 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • thanks for the input but I would not feel right about that. I guess I am from the old school. Besides so many charities are just as wasteful as the government. I don't know about Exxon but the 500 million may just mean they overpaid by that much and they may have still paid hundreds of millions in taxes.

    Dave H    Posted 02-15-2019 at 15:36:33 [URL] [DELETE]        [Reply] [No Email]  
  • Re: taxes
  • I do my fed and state thru turbo tax on the net for no charge.

    poderac    Posted 02-16-2019 at 07:27:46 [URL] [DELETE]        [Reply] [No Email]  
  • Re: taxes
  • I am not an accountant nor tax preparer, but I would use the price I paid for each item, whether new or used.

    1. You will never get a straight answer from the IRS.
    2. You have less than .1 percent chance of being flagged.
    3. If you are flagged, your reasoning should hold up in a hearing. A used gate will hold livestock in just as well as a new one. The "VALUE" is the same.

    Jim    Posted 02-15-2019 at 21:06:50 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • That would work except I have to provide the answer when it asks what is the beginning inventory for example on a schedule C and that is where I am hung up.

    Dean    Posted 02-14-2019 at 17:25:27 [URL] [DELETE]        [Reply] [No Email]  
  • Re: taxes
  • Preparing the federal form(s) for anyone who takes the standard deduction is, indeed, very simple.

    The best news it that many, many more folks will find it beneficial to use the standard deduction now than in years past.

    I spent several hours preparing mine his year because EVERYTHING was new in my case, (not just the forms) but I expect that it will take less than 30 minutes next year.

    Regarding the telephone support lines: If you knew the competence of most (I did not say all.) of the folks on the phones you would want to talk to them any more than they want to talk to you.

    If you are not aware, nothing that you are told on the toll free lines is binding so don't rely on anything.

    SDT

    TheOldHokie    Posted 02-14-2019 at 14:28:02 [URL] [DELETE]        [Reply] [No Email]  
  • Re: taxes
  • The "postcard" is form 1040EZ and has been in existence for decades but you can only use it if your taxes are brutally simple. The idea that the average filer could use a form that simple was just part of the bigger con job.

    You need a paid tax consultant - the IRS help line is not going to be able to walk you through a situation as complex as yours. They will point you to the forms you need and after that you are on your own. They will not advise you on how to structure your business.

    My guess is your congressman is going to be about as much help as the IRS.....

    TOH

    Jim    Posted 02-14-2019 at 15:50:52 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • Thanks. I told the congressional rep that I supposed there would be an extension of time given to file taxes since they can't get their phones answered. She didn't think that would be the case. Of course a 30 day extension is usually granted if requested.

    R Geiger    Posted 02-14-2019 at 14:06:55 [URL] [DELETE]        [Reply] [No Email]  
  • Re: taxes
  • Sounds like it is time for you to hire a tax professional and ask him instead of us dummies on here. You find it is money well spent.

    steve19438    Posted 02-14-2019 at 20:56:06 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • and the fee is deductible. at least it used to be....

    Jim    Posted 02-14-2019 at 14:11:34 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • It shouldn't be that difficult but with the lobbyists we have in Washington both lawyers and accountants we have taken it to absurd levels. Have any of you done the social security worksheet to see what part of your social security is taxable? There is absolutely no reason for it to be that way.

    Jim    Posted 03-06-2019 at 14:34:57 [URL] [DELETE]        [Reply] [Email]  
  • Re: taxes
  • On my own I found that for a small business it is not necessary to figure cost of goods sold. You can simply show income and sales and use the cash accounting option.

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