mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@winterpalace25 wrote:My thoughts exactly. If profit is over $400.00, add one more page for SE tax, and maybe one more for depreciation. A sales report for figuring taxes may be 20 pages, but not a 1040.
That is why I love using a tax preparing program. I answer questions and plug in number and it figures out what forms need to be filled out. It is slick and easy to do the proper reporting as long as I get my numbers right that I enter, LOL.
It should be noted that an additional $400 in income likely will have no effect on your overall taxes owed or very little difference.
@carbideliquidator wrote:Do you have a Limited Liability Company (LLC) or an Incorporation Company (INC) ....as an Individual selling on Ebay the tax return is a lot simpler , you wouldn't need all that goes into my tax return.
I'm a sole proprietorship. My tax returns are still a bit long IMHO. But as I previously said, I buy one of those tax programs, answer the questions and plug in the numbers. It figures out what forms need to be filled out.
@carbideliquidator wrote:Yeah, I probably could do my own......but I have an account that does mine, he charges $175.00 and I get his signature on the return......so if i get called for an audit like some in court now, it's my accountants fault...that's why I hire an Accountant....I might own the company, but it's my accountant responsible for accuracy and return
You need to do what you are more comfortable with, that is very important. For us, we've done this for many years. Between my husband and myself, we can usually spot if something doesn't seem right. When investigating it, it is usually a human error of the info supplied the program.
We also do the taxes for our kids, for free of course. So for a $50 to $75 cost [as prices keep going up, surprise] it is a pretty good investment.
@carbideliquidator wrote:Oh I agree 100%....you're getting your money's worth....I use to do mine and family members back when you had to get the instruction book, yearly changes, and return sheets for the post office....we have come a long way since then.......you're doing it right !
We did that too. I'm an accountant. Or I was when I worked outside the home. But never a tax accountant and that is an important distinction. We did our own taxes manually every year and the kids too until we discovered the computer programs we could buy. So much easier.
