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.

@ButtWorldsMan

>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.

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<If you were taxed on gross, a lot of businesses would be wiped out.

TRUE

@ButtWorldsMan

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