Am I Missing Out on Tax Deductions for My PC Business?

[sfdavis918]

Unfortunately, my husband owns an automotive repair shop and our taxes for personal are filed with the same accountant who handles are business account. Changing to another accountant is not an option.

JMO, but I think that your accountant was not very helpful by telling you what he did and not explaining it further. I am a firm believer that we hire others to HELP us with things that we are not expert in. I am also a firm believer in not placing blind faith in those people. I am in no way saying that you should find a new accountant, but does he make you feel like you should just trust him, or does he take the time to explain things so that you understand? Does he truly believe that he is working for you, or does he seem to convey the feeling that he is doing you a favor by letting you come to him for his assistance?

Ultimately you and your husband need to be responsible for you finances and in turn, should understand everything that is going on with them, including how much you pay in taxes and why. I'm not saying you should be able to complete them yourselves, but just understand them when you look at the final returns.

Sorry, I don't mean to be coming off as harsh. I just think that service people should remember that YOU hired THEM and they are working for you. Find someone with the heart of a teacher (or ask your current person to teach you) so that you can feel confident about the work they do for you.

 

[ChefJeniLobdell]

Thanks for posting that Jodi. I listened for a while but the volume was kind of low. Definitely gives you some good information to remember and think about.

 

[missyciccolella]

I'm a little late in responding to this, but I hope your income is not reflecting products earned. We can write off products earned in sell-a-thons b/c we use to further our business and we use them at shows! I've done PC for 4 years and rarely make a profit according to taxes. I stay within regs, and my accountant questions me when I don't deduct everything I'm entitled to (home square footage, mileage, products, etc). My Exec even writes off earned trips b/c she talks so much business on them.

I agree what you paid seems high, but do you file jointly w/spouse? do you have kids? do you work f/t? does this include state taxes? there are many factors to taxes and I'm so bad with that stuff!

 

[jbdowd0798]

I did our own taxes this year (like every year but this is the first with PC) and it turned out ok. I didn't make money this year with everything that got written off but no biggie. My taxes turned out fine and no problems. Good luck all. I just look forward to the stimulus money next week! hee hee

 

[ChefJeniLobdell]

Missy, I file jointly with spouse and have two kids. Work full time at my husbands shop. Doesn't include state sales tax. I left a message for my accountant to ask some questions on the rate at which we pay taxes and what other items cheffers have mentioned I could write off.

Thanks for your help everybody!

 

[raebates]

This was the first year I did what Missy is talking about. It never occurred to me that the products I earned, which are reflected in the "other income" on my 1099, are then business expenses. For example:

$800 (Other income on 1099)
- 300 (Conference Cash, part of which will be deducted in travel expenses)
$500 (Products earned in SAT and other incentives which were used in my business and, therefore, a deductible expense)