Mikelly Posted February 12, 2007 Share Posted February 12, 2007 Out of curiosity, because I have never asked the guy this happens to, why would a buisness owner have to pay $25-35k in taxes every quarter? I guess they make that much money? Here's how it works... We pay our taxes quarterly, and then at the end of the year, when you do your balance sheets, whatever profit is left over, that money gets a 40% tax. After that, what's left is yours free and clear. I'm not claiming that we're making tons of money, but for every $100,000 worth of gross profit at the end of the year, you pay $40,000 to the IRS. Now, I'm absolutely 100% sure people are gonna jump on this thread and say we're doing something wrong by not "sheltering" all that money... Trust me on this one, with the people I do business with, and the customer we support, and the background check, the clearance required to support the customer we do, I'm not about to try anything "grey" to save a few bucks. I don't even try the whole "lease a company car" game. Supporting Gov't contracts is a different business all together and gets you a different level of attention. So we "pay" the man. Mike Quote Link to comment Share on other sites More sharing options...
Lunar240z Posted February 12, 2007 Share Posted February 12, 2007 2 more watanabe's most likely.16x9 Quote Link to comment Share on other sites More sharing options...
dscott@red3 Posted February 12, 2007 Share Posted February 12, 2007 Eliminating me and my wife's credit card debt and purchasing a Works overfender kit for my personal 240Z. Project 240ZR is getting closer to reality. Quote Link to comment Share on other sites More sharing options...
dr_hunt Posted February 12, 2007 Share Posted February 12, 2007 I'm not advocating "grey" areas. Simply stated, your balance sheets are off if your having to pay at the end of the year, which raises a huge red flag IMO. So, something isn't right in your quarterly statements that needs to be addressed as it appears to the non-informed rich uncle that your overlooking something every quarter. Quote Link to comment Share on other sites More sharing options...
Mikelly Posted February 12, 2007 Share Posted February 12, 2007 Not at all Doc... it's a different game with the business I'm in. There's simply no way possible I could shelter the amount of revenue we're generating. We're paying a firm over $2000 per month to do our corporate taxes and bookkeeping. I'm all ears if you've got a better way, cause I'm getting KILLED on taxes. Contact me offline... Mike Quote Link to comment Share on other sites More sharing options...
JMortensen Posted February 12, 2007 Share Posted February 12, 2007 How about a SEP IRA Mike? http://personal.fidelity.com/products/retirement/getstart/newacc/sepira.shtml.cvsr?refpr=sb004 Quote Link to comment Share on other sites More sharing options...
Mikelly Posted February 12, 2007 Share Posted February 12, 2007 Doc & Jon Check your PMs... We've got an investment broker, CPA, Bookkeeper, and Business Attorney who are keeping us on the straight and narrow. It's hard to do much when you've maxed out everything we're doing and you STILL have a tax liability. Mike Quote Link to comment Share on other sites More sharing options...
Guest Mike Posted February 13, 2007 Share Posted February 13, 2007 "...with the people I do business with, and the customer we support, and the background check, the clearance required to support the customer we do, I'm not about to try anything "grey" to save a few bucks. I don't even try the whole "lease a company car" game. Supporting Gov't contracts is a different business all together and gets you a different level of attention. So we "pay" the man." Good ol' Uncle Sam, eh? MIKE... what you need to do is attend their mandatory Annual Ethics Training classes. This is where those who are in the positions to make some real money learn how to skirt around doing the right thing and still avoid getting into trouble. This is Civil Service, Military, and those Contractors who just happen to be retired military and are therefore close to those in the loop. Trust me on this, Mike. Quote Link to comment Share on other sites More sharing options...
Guest Mike Posted February 13, 2007 Share Posted February 13, 2007 "Eliminating me and my wife's credit card debt..." The best money spent yet. Quote Link to comment Share on other sites More sharing options...
Guest Mike Posted February 13, 2007 Share Posted February 13, 2007 DOC, JON... Quit picking on Mikelly:mrgreen: Quote Link to comment Share on other sites More sharing options...
MusPuppis Posted February 13, 2007 Share Posted February 13, 2007 We pay our taxes quarterly, and then at the end of the year, when you do your balance sheets, whatever profit is left over, that money gets a 40% tax. After that, what's left is yours free and clear. I'm not claiming that we're making tons of money, but for every $100,000 worth of gross profit at the end of the year, you pay $40,000 to the IRS. So for every dollar profit you make you get jacked for 40c? Thats.. I dunno.. Sick? Quote Link to comment Share on other sites More sharing options...
Mikelly Posted February 13, 2007 Share Posted February 13, 2007 There are a couple of options that you can use in taxes. My problem is that we're tapped out on those options already. We have a CPA, an investment broker, and a business attorney. We are doing everything recommended. Bottom line is, short of "questionable" tax claims that could not only jeopardize my company, but my clearance as well. Nope, This is a "good" problem to have, but it sux to have to deal with it. Mike Quote Link to comment Share on other sites More sharing options...
alexideways Posted February 13, 2007 Share Posted February 13, 2007 So for every dollar profit you make you get jacked for 40c? Thats.. I dunno.. Sick? Quote Link to comment Share on other sites More sharing options...
GeeZ Posted February 13, 2007 Share Posted February 13, 2007 Out of curiosity, because I have never asked the guy this happens to, why would a buisness owner have to pay $25-35k in taxes every quarter? I guess they make that much money? Not every business owner is in a cash business where you can hide the cash. Once you get to a certain size, you have everyone watching you, including your employees. They maybe your friends today, but fire one and you will see. It is best to honest upfront then to pay penalty and interest. They are severe, trust me. Also, if you are getting money back, it is only because you paid too much to begin with, unless you had a catastophic lost. It's your money and you gave the government a interest free loan. It absolutely amazes me when taxpayers purposely overpay their taxes so they can get a refund. Forced savings? Whoops, I need to get off my soap box. Quote Link to comment Share on other sites More sharing options...
tcufrogz76 Posted February 13, 2007 Share Posted February 13, 2007 Ohh a MIG.. thanks Naviathan.. I forgot how much Ive been wanting one of those! Add a GReddy Type RS blow off valve to the list...I see that "G" word and just cant seem to say no..lol Quote Link to comment Share on other sites More sharing options...
Guest 280ZForce Posted February 13, 2007 Share Posted February 13, 2007 Already bought a 3" downpipe, some 550 injectors, aeromotive fpr. I need to find an O-ring fuel rail(hint hint-anyone selling?) Maybe I'll rebuild the turbo and get a clutch and flywheel. Might sell off the extras I have and go V-8. i'll have a 14mm o-ring rail i'll be selling here soon. it's just being powdercoated right now. Quote Link to comment Share on other sites More sharing options...
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