|
Posted by John Pollard on March 22, 2008, 9:47 am
Please log in for more thread options
Bob Fry wrote:
>
>> You speak only for yourself, but you pretend to speak for
>> others.
>
> Duhhh...this is Usenet. Get a clue. Quit acting like a
> NetCop.
I don't know what planet you're from, but "this is Usenet"
doesn't mean squat. There are NO "cops" here; so we can all say
what we want. When you make a post, anyone is entitled to
comment on it; and no one has to guarantee you'll like what they
say.
And if you can't support your statements, you'll be better off
not making them.
So take your own advice: get a clue.
--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup
|
|
Posted by danbrown on March 20, 2008, 9:58 pm
Please log in for more thread options
IF your a sole proprietor, where you and your business are a single
tax entiry, which is the intended market for H&B, THEN you're a cash
basis taxpayer.
AS SUCH, since you received the payment in January (presumably 2008),
then it's included in 2008 income, no matter when the work was done.
QUIT COMPLAINING!!!
This means that you don't have to pay taxes on it until 2009.
db
|
|
Posted by R. C. White on March 21, 2008, 12:19 am
Please log in for more thread options Hi, Bob.
Remember that Quicken is primarily a bookkeeping program and only
secondarily a program for recording tax information. We discussed this
(again) several weeks ago. You should record in Quicken the actual date
that you received the check, no matter when the income was earned or when it
was mailed to you. (You haven't said whether this is a paycheck for
employment in December, or a payment for goods sold or services performed by
a business; since you are asking about H&B, I'll guess the latter.) You
should keep your records according to what actually happened to you and your
business. Let your customers record in their books what actually happened
from their perspective. Make sure that your records are good enough so that
you can reconcile any differences between what you report and what your
customers say. As we said before, it is quite normal and natural that your
records and your customers' (or vendors') records can show different
amounts - and both are correct. Usually it's just a matter of timing, and
the differences can be easily reconciled.
Laura asked, "Are you a cash or accrual based company?" And that's a key
question. She added, "Individuals are all cash basis"; that is not always
true, but taxpayers who have elected accrual basis reporting of their
individual income are very rare.
We elect cash or accrual when we file our FIRST income tax return and it's
not easy to switch later; it requires approval by the IRS. That first
return for most of us was when we were teenagers in our first job and
practically all of us chose cash basis and we must use that for the rest of
our lives.
But if we start a business, we have to choose between cash and accrual for
that business. It is quite acceptable - and sometimes required - to use the
accrual method for a proprietorship business, even if we continue to use the
cash basis for our non-business income. An employee who starts a business
on the side might choose use the accrual method for that business but still
report his wages, interest income, investment gains and other transactions
on the cash basis. If he has 3 proprietorship businesses, he might choose a
different method for each of them. Again, though, the choice must be made
on the FIRST return for each business and then cannot be changed in later
years without IRS permission.
If you choose (or chose) the cash basis, you report the income when you
receive it, even if it was earned last year - or 3 years ago. If you
elected the accrual method, then you report it when it is earned, even if
you haven't collected it yet.
This cash-versus-accrual topic is, first of all, an accounting question.
Accountants were debating it long before there ever was an income tax. ;^}
This discussion could go on for a very long time, Bob, but this is enough
for now unless you have a specific question.
I've been retired for a long time. This is a subject that doesn't change
often, but you should check with your own CPA to be sure that the rules are
still as I remember them.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Quicken 2008 Deluxe in Vista Ultimate x64 SP1)
> Every year at tax time I'm reminded of something I wish Quicken would
> do: store an optional tax year date for an entry in addition to the
> normal date when the entry really happened. For instance, if I
> receive, deposit, and enter a check in January but it's for the
> previous tax year, I have to enter a false date so when I do a report
> it shows in the correct tax year. Has Quicken done something like
> this in Q2007 or Q2008, or just added more useless features and
> introduced another round of bugs?
|
|
Posted by Eric on March 21, 2008, 4:02 pm
Please log in for more thread options If you must record it in the previous year here is what I do in Q (not PH&B)
for anything that must be recorded in the previous year. Note that credit
card charges may also be recorded in the year they paid or the year they are
charged.
1. Record the actual transaction when it occurs BUT use a non-taxable
category and add a memo note to "see Dec 31".
2. On Dec 31 add a Deposit of $0 as a Split Transaction:
A. Reverse the non-taxable entry from #1, +/- as appropriate.
B. Make an entry into the proper taxable account, -/+ as appropriate.
C. Add a memo note "See ..." using the actual transaction date.
This transfers the taxable effect to the previous year without upsetting
your any balances.
Eric
> Every year at tax time I'm reminded of something I wish Quicken would
> do: store an optional tax year date for an entry in addition to the
> normal date when the entry really happened. For instance, if I
> receive, deposit, and enter a check in January but it's for the
> previous tax year, I have to enter a false date so when I do a report
> it shows in the correct tax year. Has Quicken done something like
> this in Q2007 or Q2008, or just added more useless features and
> introduced another round of bugs?
> --
> Every great advance in natural knowledge has involved the absolute
> rejection of authority.
> ~ Thomas Huxley
|
| Similar Threads | Posted | | Flexible Spending Account - prior year to current year switchover | January 13, 2007, 7:42 pm |
| Assign batch categories | February 23, 2007, 12:49 am |
| Assign class to recurring bill | October 17, 2006, 12:59 pm |
| Re: Phantom "Margin" Entry | June 26, 2006, 12:39 pm |
| Darn Placeholder Entry | November 11, 2006, 9:12 pm |
| Investment entry problem | April 16, 2007, 12:33 pm |
| Data Entry Bug - when will it be fixed? | July 13, 2007, 9:56 am |
| mysteriously missing entry | September 3, 2007, 10:48 pm |
| 401k entry issues | November 24, 2007, 5:06 pm |
| 401k entry issues | November 24, 2007, 4:31 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap