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Posts by jason_kraft

A. The targeting was focused solely on political groups with certain name patterns attempting to gain non-profit status;B. Both liberal and conservative groups were targeted;C. Unless you make it obvious in the name of your business, the IRS does not know what your political affiliation is when you file your tax return.
Perhaps, it's just difficult to imagine that this would be an issue during an audit when there is absolutely no impact to net profit. Maybe if the auditor was having a bad day, but worst case scenario would be having to go through your receipts again and reclassing expenses, of course no penalty would be due because it would not impact your tax owed.There's also the question of how the auditor would even know there was an issue just by looking at your Schedule C, unless...
It was a cost/benefit decision...there is additional labor cost involved in separating the expenses on a single receipt into accounts that are all added up the same way vs. just including them in the account with the majority of the purchases. An auditor won't care if a few bucks here and there end up in Supplies (line 22) instead of Office expense (line 18), since the IRS treats both expenses categories as equivalent when making the net profit calculation.Now if accurate...
We started out charging $1/mile round trip but changed it to $1/minute to take into account SF bay area traffic (in which case this shortcut wouldn't work).If you only charge $1/mile on the way there, you would double the amount in the delivery charges account to get the number of miles.
I initially started out carefully dividing up each receipt into the appropriate expense account, but I eventually realized that this wasn't really providing any value. It's possible I'm missing something...could you explain why you wouldn't fudge categories, as long as all the categories are deductible in the same way?
If you have a standard delivery charge per mile, I found it helpful to book delivery charges to a separate income account. So if you charge a flat $1/mile, the number of miles you drove for deliveries is equal to the number of dollars in your delivery charges account.
They do fit into categories, but if you look at how net income is calculated on schedule C (line 31) it just adds up all the expense categories (lines 8 through 27a) and subtracts the total from gross income, which is in turn gross sales - returns - COGS . You should end up with the same result if you enter an entire receipt into one account (whether it is COGS or expense) or if you break it up into multiple accounts.A significant exception is capital expense (a large...
If all the items are deductible it's probably not necessary to separate the items for tax purposes.If Cake Boss has keyboard shortcuts I highly recommend using them, with QuickBooks each receipt would take about 5 seconds to enter using just the keyboard.
I also kept separate accounts for ingredients, baking supplies, general supplies, etc. This was in QuickBooks but CakeBoss should work similarly. When entering a receipt into expenses I would typically just use one account based on the majority of the purchases on the receipt. So there's no need to throw up, you should be fine putting all the expenses in one account (as long as they are all business-related of course).
The whole point of an LLC is to allow minimal operating requirements while offering liability protection as long as the LLC is treated as a separate entity (and there was no fraudulent behavior). So your proof stands, but the fact that an LLC with minimal bylaws does not look like a traditional corporation is orthogonal to the point of whether liability protection will hold up.Maintaining business/personal separation is the key here, and if you can do that with minimal...
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