moveson at gmail.com
Wed Feb 9 08:40:40 MST 2005
Are you set up as an LLC?
If so, all profit, that is whatever is left over after earning revenue
and substracting expenses is considered profit. This profit is taxed
as ordinary income.
Many LLCs set up a separate bank account, then they keep track of how
much money they pull out to live, and report that as their income.
My wife and I own an LLC and that's essentially how we do it. We do
include as much as possible as business expenses, for example, our
computer, desk, etc was all counted as a business expense, even travel
time for (business purposes) in the car can be deducted at $.30 per
mile, or something like that. There's nothing that say's you can't
visit a client in southern california, but take the family and expense
the gas and hotel - since you'd have to pay that whether the family
comes or not. But hey once you're down there you can take the kids to
Disneyland - but the entrance fee into the park is not legally
My aunt does taxes professionally and she's excellent. She does ours
and is very reasonable, in fact, I save $ by paying her that I'd
otherwise have to give to uncle sam. Here's her name and phone
number. Joan Heath 805-937-1447
On Tue, 08 Feb 2005 21:18:02 -0700, Sasha Pachev <sasha at surveyz.com> wrote:
> Hello, everybody,
> This is going to be less OT than some of the threads have been. If you are a
> Linux hacker, you might have a consulting business. And if so, figuring out how
> you pay your taxes is a part of it. So this is somewhat on topic :-)
> As some of you may have noticed or heard, I am now a full-time independent
> consultant for the first time. Things are going well so far, except I need to
> figure out how I am paying taxes to make sure IRS does not hit me with a fine,
> and also to make sure I do not pay more than I have to.
> Does anybody know of a calculator that will tell me based on my expected annual
> income, family size and estimated deductions how much tax I owe per quarter for
> both state and federal taxes? I have found one on Intuit site that kind of does
> it, but it does not do deductions/child tax credit/etc, nor does it do state
> taxes. (And to keep this on topic, it has to be Linux-compatible).
> If I did fine without a CPA when most of my income came from a W-2 type job, do
> I need one now?
> Any other tips?
> Sasha Pachev
> AskSasha Linux Consulting
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