I'm just curious... have you filed your taxes yet? If not, what's holding you back? I filed mine and actually got some $$ back for a change!! Woohoo!!

I'm happy to answer any tax questions anyone has.

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Rebecka Melson ~ Virtual Business Services

Not yet, but planning to early next week (I still have time right?? )
I usually have it done in January already but this year we have to PAY SO MUCH....egads! (at least now that we're HERE in the country we can file for LLC to save ourselves the trouble next year....)

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We filed the second week in Feb and already got our electronic refund for fed. State we owe so we're keeping it until the last day!

This year was easy though because I hadn't started my business yet...we did it through turbo tax in a little over an hour. I'm sure I'll be in for a shock next year!

Make it a great day!

Sundi

I like to file EARLY! It's one of those "planner" things that I do! We usually get money back so I like to get it sooner than later :-)

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Doreen R. Patrick, MVA, ACS, CIVA
www.virtualbusinesspartners.net

Originally Posted by Rebecka

I'm happy to answer any tax questions anyone has.

I'll take you up on that......yes, I'm state-side.

I'm reading this book I've found very helpful (Small Time Operator by Kamoroff) and was wonder if something he said was true. He said that expenses incurred before "opening your doors" are considered start-up costs which aren't deductible the way expenses are. He said it is beneficial to open your doors, if possible, in our case I think it would mean getting $ from our first paying customer, and then buy everything you need.

Is this true?

Thanks in advance!

Sundi

Originally Posted by Sundi

I'll take you up on that......yes, I'm state-side. I'm reading this book I've found very helpful (Small Time Operator by Kamoroff) and was wonder if something he said was true. He said that expenses incurred before "opening your doors" are considered start-up costs which aren't deductible the way expenses are. He said it is beneficial to open your doors, if possible, in our case I think it would mean getting $ from our first paying customer, and then buy everything you need. Is this true? Thanks in advance! Sundi

Yes, that is correct Sundi. Start up costs normally are amortized over a period of 5 years, but now you can expense up to $5,000 the first year. Start up costs are the legal, professional and organization fees paid for investigating or starting up a business. For small businesses such as ours these costs are usually small, big companies will usually invest money in CPA's and Lawyers to draw up financial statements, legal docs, etc. to investigate the profitibility of a business prior to starting it.

The start up date is not necessarily when you received your first customer payment as many people can be actively in business for months prior to actually making any money. Normally it is the date you registered your business with the State you live in.

An example of start up costs are:

State registration fees
Attorney fees paid for start-up
Fees paid for a business plan (if prior to start-up date)
Accountant fees
Online services (i.e. legalzoom)

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Rebecka Melson ~ Virtual Business Services

Just finished itemizing our whopper medical bills and now I just have add up the business expenses. Hopefully by the end of the week I will have it all filed!

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Dawn Riley
A Virtual Assistant in Paradise
Our business is about making yours better

Turbo Tax is your friend. Filing is complete and refund is 'a comin!

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

We also file early in the year and this year we shouldn't have. I got three more documents AFTER we filed and now I'll have to amend. I don't think the new docs will make any changes as they should balance each other out.

We have 4 kids and have the gov take as much as they can all year. We like having a windfall in February so we can do big projects or make large purchases we would otherwise be unable to save for.

I usually file sometime in mid-february after I've received all my documents. I keep maticulous records so I know what all documents to expect. I probably wouldn't get mine done that soon, but I have a friend who's taxes I always do, so I use that as my time frame. When she gives me her stuff to file I file mine at the same time. Otherwise, I would probably wait until the last minute.

This is the first year I got a decent check back, having the business helped. I just started in July 2007 so I had more expenses than income. Usually I just get enough back from Federal to pay the State... and I do hold out the max, but being single with no kids offers NO tax breaks.

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Rebecka Melson ~ Virtual Business Services