Red Ringed Tupperware Talk -- Good Times are had by all (16)

FlyingPhotog wrote in post #9908064
Really? I find this advice to be rather suspect.

Technically, the very best situation (short of a complete push) is to actually owe the Feds a little money. Anything you get back was simply an interest-free loan to Uncle Sam.

That...or a few accountants I spoke with said the ideal case is owing $0 and getting back $0 - but who ever gets that?

Harm wrote in post #9908140
That...or a few accountants I spoke with said the ideal case is owing $0 and getting back $0 - but who ever gets that?

Not for ma. My ideal case is that I paid 90% of the tax I owe and on 4/15 I write a check for the remaining 10%. This avoids a penalty and I get to maximize my earnings on my money. We have to do out taxes quarterly so we adjust quarter to quarter.

I didn't know you could do that...

Harm wrote in post #9908278
I didn't know you could do that...

Wife is self employed. She has her own business so she is responsible for all taxes. It makes a huge difference when you have to writ a check to the gov every freaking quarter and you say to yourself. Dang.. I could have gotten a 5dMkII for that one with the 24-105. It makes you cry.

Just letting everyone know I am still alive just been extremely busy as usual. For the last couple weeks I have been helping some good friends rebuild their lives. Their house caught fire, due to faulty wiring. Lucky most of the family was out of town but everything was still lost. I have been collecting donations of household items and clothing to get them started again. Everyone and all their pets made it out ok.

Couple More

One More..

Yikes! Thank goodness everyone is okay and safe. That is a bigger concern! Hopefully they can get themselves back in a place in no time.

No kidding. I know the loss of a home all too well. We lost our summer house to an arsonist. Some kid who liked to watch things burn. I still remember that call.

FlyingPhotog wrote in post #9908064
Really? I find this advice to be rather suspect.

Technically, the very best situation (short of a complete push) is to actually owe the Feds a little money. Anything you get back was simply an interest-free loan to Uncle Sam.

gjl711 wrote in post #9908102
Look for a new CPA. That's horrible advice unless your gonna end up owing so much that you fall into the penalty zone.

I've never found her advice to be bad before, so I'm going to give her the benefit of the doubt. She's been doing our taxes for a number of years and has been doing Heather' parent's taxes even longer. She manages to do right by them even they own property in three states, including where we live which is an income property.

Maybe you can just ask what her thinking is? There may be some good reason for it other than getting a big refund.

gjl711 wrote in post #9908457
Maybe you can just ask what her thinking is? There may be some good reason for it other than getting a big refund.

^^^ This ^^^

I'd definately want clarification.

I too was primarilly a 1099 child for many years and I was told to be very careful with paying quarterlies and such because of the landmine related to not hitting the number closely enough.

I did pay some penalties each year for "underpayment" however, they were a pittance compared to the fines involved for not getting within 90% of what you actually owed. And once you miss that 90% mark, the IRS watches very, very carefully. You could be subject to quarterly "mini audits" if they thought you were playing really fast and loose.

My argument was always that my income could fluxuate wildly. Thin quarter followed by flush quarter so how in the heck could I even remotely estimate what I would make?

Moving to W2 employers solved a lot of those hassles and right now of course, I'm not making anything so no worries, right?!

My wife's business is also up and down she could make 50% of her yearly income in one quarter, almost nothing the next, then the remaining spread out the rest of the year. It is a careful game that you have to play.

gjl711 wrote in post #9908457
Maybe you can just ask what her thinking is? There may be some good reason for it other than getting a big refund.

I think it has to do with the fact that I'm not making any money with the photography business and may have to fold it up in the next year or so. Right now depreciation of equipment and the like is what is preventing us from having to pay. The business is running at a loss and has been since I started up again three years ago. I can't do that for much longer or the IRS is going to say it's a hobby and not a business...

FlyingPhotog wrote in post #9908745
^^^ This ^^^

I'd definately want clarification.

I too was primarilly a 1099 child for many years and I was told to be very careful with paying quarterlies and such because of the landmine related to not hitting the number closely enough.

I did pay some penalties each year for "underpayment" however, they were a pittance compared to the fines involved for not getting within 90% of what you actually owed. And once you miss that 90% mark, the IRS watches very, very carefully. You could be subject to quarterly "mini audits" if they thought you were playing really fast and loose.

My argument was always that my income could fluxuate wildly. Thin quarter followed by flush quarter so how in the heck could I even remotely estimate what I would make?

Moving to W2 employers solved a lot of those hassles and right now of course, I'm not making anything so no worries, right?!

So far I haven't been hit with the requirement to make quarterly payments. As you said, it's hard to make a payment of a percentage of nothing...

JWright wrote in post #9909204
I think it has to do with the fact that I'm not making any money with the photography business and may have to fold it up in the next year or so. Right now depreciation of equipment and the like is what is preventing us from having to pay. The business is running at a loss and has been since I started up again three years ago. I can't do that for much longer or the IRS is going to say it's a hobby and not a business...

So far I haven't been hit with the requirement to make quarterly payments. As you said, it's hard to make a payment of a percentage of nothing...

Those of you who have your photography set up as businesses should set up an exchange where you buy photos from each other, just enough to show a slight profit.

j/k, Mr. Taxman.