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View Full Version : Do you pay 2006 taxes on December's income?

powwka
Nov 30th 2006, 7:44 pm
Because you don't receive the check until January, so what year does it count for?
latoya
Nov 30th 2006, 7:49 pm
Whatever you earned between January 1 and December 31, 2006 counts as 2006 income.
DomainMaster
Nov 30th 2006, 8:04 pm
If you receive the check in January it won't count for the previous year.
darkbreed
Nov 30th 2006, 8:15 pm
talking about taxes, did anyone check out Aaron Russo's "America: From freedom to fascism" ? Seems we dont have to pay income taxes according to that :P Here it is http://video.google.com/videoplay?docid=-4312730277175242198&q=freedom+to+fascism
Tearabite
Nov 30th 2006, 10:00 pm
talking about taxes..
How many of you deduct things like your internet bill, a new PC, etc ? and, do you deduct 100% of those costs, or only a partial % because you also use those things for personal use?
Bluecircle
Nov 30th 2006, 10:26 pm
talking about taxes..
How many of you deduct things like your internet bill, a new PC, etc ? and, do you deduct 100% of those costs, or only a partial % because you also use those things for personal use?

It depends. I paid $2800 for my new laptop and my accountant said to write it 100% off because I do all my business on it.
Tearabite
Nov 30th 2006, 11:00 pm
It depends. I paid $2800 for my new laptop and my accountant said to write it 100% off because I do all my business on it.

Yeah, i was planning on writing off 100% of my new PC, even though we do occasionally use it for personal email and the personal checkbook (about 1%).. I'm worried about writing off 100% of my internet bills though, because we do share the connection with another PC in the house..

Any suggestions?
dethfire
Nov 30th 2006, 11:33 pm
I thought the max write off of an item is 30%
Colbyt
Dec 1st 2006, 1:28 pm
Yeah, i was planning on writing off 100% of my new PC, even though we do occasionally use it for personal email and the personal checkbook (about 1%).. I'm worried about writing off 100% of my internet bills though, because we do share the connection with another PC in the house..

Any suggestions?

I don't see any way that you could justify a 100% write off on the internet fees. After your posting here I would only go 98% on the new computer.

But then I am conservative when it comes to this kind of stuff. It is my firm intention that if I ever get audited they will owe me money when we are done. Good record keeping allows so many legimate deductions that there is no need to risk a chancy one.

Note to all: written records required to validate claim. Do you want a time clock on your connection?
bargainr
Dec 1st 2006, 3:34 pm
How you recognize income will dictate whether or not December earnings is considered income. If you recognize it when you perform the work, then yes you would consider it income. If you recognize it when you are paid, then you earn it when you cash the check (not the date of the check or when you receive it). (it's called cash vs. accrual (http://www.nolo.com/article.cfm/ObjectID/08E205EE-E8B6-4D25-A2B01C3AC318E291/catID/1745D9A3-D50D-4AAD-BFB3ED609A4EE3F5/111/ART/))

As for expenses, you're supposed to deduct only that which is used by your business. If you only use it 50%, deduct 50% of the cost. For equipment, if it's all business then you're talking about either spreading it out across years or taking it all this year, it's called a Section 179 deduction (http://www.bankrate.com/brm/itax/Edit/tips/Stories/sec179_deduction.asp).