How My business mistake saved me $$$:
I was putting away 30% of my gross business income preparing for my annual IRS shakedown.
Come to find out the IRS taxes you on NET income not your gross like id been saving for.
So I basically over saved myself into a tax refund! I'm so happy rn 😊
@basedbagel it sounds like you're doing everything yourself instead of running tax questions through an accountant who could've told you that immediately. You also get tax relief if you have a net loss.
I'm not going to say to take a business tax course because it's a waste of time, but if you find a textbook, you can look for the specific rules related to your type of business. Business expense deductions, for example.
If you were taxed on gross, a lot of businesses would be wiped out.
>sounds like you're doing everything yourself
Yessir! The cash flow was running low and I foolishly thought it wouldn't be that hard since I wasn't rich.
I have an accountant now though so it's all good.
>Business expense deductions, for example.
I did look into this like deducting my miles for biz meetings but I never used a mile counter 🤦♂️ so I could have still done it but if I was audited id be screwed.
@basedbagel rule of thumb is to never take business deduction on things you don't have a document to back up. Also, since you're a political dissident, if something is unclear or you're unsure if something counts as a deduction (when in doubt), don't take the deduction. Overpaying a bit is better than the uncertainty of whether or not that one deduction 2 years ago will fuck you later.
@ButtWorldsMan @basedbagel This is completely correct. Never give them a reason to snatch you.
<If you were taxed on gross, a lot of businesses would be wiped out.
TRUE
@ButtWorldsMan