User Submitted Tax Questions

Small Business

Unique business tax question - Can you help me?

I want to start a business at home. I want to sell t-shirts and hats. My unique selling proposition is that someone buys a hat or shirt from me and I'll donate 50% of the purchase price to a charity that relates to them. I have a full-time job in Oregon. I get a W2 each year. Last year I earned $120,000. My wife does not earn any income. We do not own a home. We have no other sources of income. My business model looks like this: I design a t-shirt or a hat. I price either item at $30. COGS = $8. As part of my sales process, I donate 50% of the $30 to a specific non-profit. $30 retail price $8 COGS $15 non-profit donation $7 profit I’ve been told that I can not write off 100% of the non-profit donation. Can I afford a 50% non-profit donation as part of my selling process and still cover the taxes and make a good living? Is there a formula I can use that will help me understand what selling 1,000 units a month looks like? 5,000 units a month? 10,000 units a month? And 20,000 units a month? Thank you for your help! Jason

Tax Forms

W9 or 1099 required?

Hi! I recently watched someone’s dogs, in my home, while they (the owners) were out of town. The total payment we agreed to (prior to the trip) for my service was over $600. Now, after the trip, at the time of pickup, they are insisting I issue them a w9, or that they give me a 1099. I’m confused because I thought 1099’s and w9’s were only issued in a situation where an individual works for a business (like a producer or a salesman for an insurance company?) but isn’t an employee. I do not work for them, I just watched their dogs when they went out of town. Am I mistaken? What should I do?

Bookkeeping & Write-up

Shop Warranty Expenses

When a shop covers the parts and labor of a job for a customer due to a mistake, how is that properly entered? 1) the customer needs an invoice showing the parts and labor done. I entered the parts in bills under Warranty Expense and then put them on the invoice as 0qty so they end price would be 0 but they could see what the cost would have been. I entered labor on the invoice and then billed it out to Warranty Expense as well. Sales tax on labor. ____________________________________________________ Other option: I record the parts under Parts Purchased (COGS) like normal. Add them to the invoice like normal with sales tax. Then zero out the entire invoice to Warranty Expense. Which is the proper way to do this entry? Should we charge sales tax on the invoice since it is being covered by the shop and not actually a resale? The parts were purchased under resale tax exempt.

Personal Taxes

Do I need to file taxes I made under $10,000 and I am on disability

Investment and Finance

1031 Exchange Vesting Requirement

I've owned an investment condo for 20 years and filed all taxes on it under my SSN. In 2015, I filed a quit claim deed (QCD) to change from individual to an LLC in an irrevocable trust. I want to do a 1031 Exchange this year but lender for "to-be-purchased" property will not fund an LLC in irrevocable trust. I will file QCD to change title back to individual name. Will this still be allowable under 1031 rules or trigger taxable event?

Tax Forms

Form 4868 for an extension

Ready to efile just want to confirm it’s the correct form

Personal Taxes

Student worked in 2021 but not 2022

College student had a job and got a W-2 in 2021. In 2022 worked on jobs no W-2 how do I file

Personal Taxes

Need to pay taxes

So our house burnt down back in 2021 in maryland and so we're trying to sell the land it was on for 100k we bought it for 150k would we need to pay taxes on it and how much taxes would we need to pay

Miscellaneous

What do I do being underage making money in my moms name, with 1099 forms being sent to her and the IRS?

Hi, I am under 18 and run a business that sends payouts through Stripe, which requires you to be 18. It is in my mom's name and SSN and was wondering if there is anything I can do about the taxes being in her name, even though it is my money. Stripe sends 1099 forms to me, and the IRS.

Deductions and Write-Offs

Depreciation

Equipment Asset was fully depreciated in the first year. Then two years later I noticed that the depreciation for the same equipment was started up again for the next ten years. What entries do I make to retire this asset?