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Save some out for taxes

by Scott Ames
21 replies
You just made a big windfall of $20,000 cash from your launch, but don't spend it all. Remember to save some out for taxes or you'll be crying and having a fire sale in February.
#save #taxes
  • Profile picture of the author Kevin-VirtualProfitCenter
    You, sir, are buzz kill.
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    • Profile picture of the author winebuddy
      Originally Posted by Kevin-VirtualProfitCenter View Post

      You, sir, are buzz kill.
      NO WAY!!!! I GET 4500 back on the car I bought and $8,000 back on the house I bought!!! NO TAXES THIS YEAR!!! WOOO HOOO
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      • Profile picture of the author Scott Ames
        Originally Posted by winebuddy View Post

        NO WAY!!!! I GET 4500 back on the car I bought and $8,000 back on the house I bought!!! NO TAXES THIS YEAR!!! WOOO HOOO
        Ha Ha.. well you do have to pay taxes on the $4,500 you get from the cash for Kunkers program. I think the $8,000 for a new home however is a tax credit?
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    • Profile picture of the author Scott Ames
      Originally Posted by Kevin-VirtualProfitCenter View Post

      You, sir, are buzz kill.
      Sorry... better than buzz kill in April I think
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  • Profile picture of the author Shannon Tani
    Do you have suggestions as to what percentage to save?

    Love,
    Shannon
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    • Profile picture of the author Scott Ames
      Originally Posted by Shannon Tani View Post

      Do you have suggestions as to what percentage to save?

      Love,
      Shannon
      Depending on your income, from 20% to 30% should be enough. Hopefully you have deductions to cover most of it and you'll not need that much.
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  • Profile picture of the author JakeDaly
    ^ That's what Al Capone said.
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  • Profile picture of the author Scott Ames
    Originally Posted by Matt Jutras View Post

    What if Uncle Sam doesn't know about the $20,000?
    They might know depending on how you got it. Any business that puts out $600 or more for services files a 1099 showing they paid it to you. If you belong to a CPA network, or even a lot of payment processors, they will report the checks you get.
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    • Profile picture of the author Jeff Henshaw
      What if Uncle Sam doesn't know about the $20,000?
      You might get away with it - but not for ever.

      If it's like the UK and the tax collection authorities suspect that one has income from other than a JOB (employment where one pays as one earns), the Tax inspectors do the same as we Internet Marketers do, they carry out an Internet search.

      Well the search will not be done using Google, but the Inland Revenue (UK) and (I assume) the USA IRS can and do carry out searches using one's name, company name, postal address, NI number, Tax id and so on and so on, via all of the financial databases in one's country - and sometimes beyond. This will bring up every account related to or assumed to be related to the search made.

      Then, if they feel that you owe money to the tax authority, their off line investigations will begin.

      If you are intending to, or are running a legitimate business, do not try to dodge paying taxes. You may get away with it for a while, but one day the Big Bad Tax Collector will find you, either by design, by accident, or by a jealous neighbor or competitor reporting you.

      I am not preaching to the seasoned business owner here, but new entrepreneurs need to understand the real world of doing business, especially where tax is concerned, being it on or off line.

      If one wants to avoid paying tax, get a good financial adviser, if one wants to evade paying tax - don't get caught - no Governments take prisoners - you can lose everything that you own.

      Regards,
      Jeff Henshaw.
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  • Profile picture of the author Kevin-VirtualProfitCenter
    I agree we ought to pay our taxes. I still say that you, sir, are a buzz kill. Let us roll in our 200 $100 bills spread out over our bed while we can.
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    • Profile picture of the author Scott Ames
      Originally Posted by Kevin-VirtualProfitCenter View Post

      I agree we ought to pay our taxes. I still say that you, sir, are a buzz kill. Let us roll in our 200 $100 bills spread out over our bed while we can.
      Sorry..
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      • Profile picture of the author TheWealthSquad
        Actually being prepared is better than being stunned on tax day

        Roll in yoru $20s all day long.. just don't spend them all. Hopefully you are keeping track of your business and expenses on a monthly or at least quarterly basis. As a business owner, you should rarely if ever be caught surprised in April.

        If you are, fire your current accountant and book keeper. Tell the next one you want monthly statements that show P/L so you have an idea how much taxes you owe.

        If you don't understand any of that, shoot me a PM. I can coach you

        Its not how much you make but how much you keep that matters. Learn the rules to the game and make your life easier
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        • Profile picture of the author cimbah
          You can make monthly or quarterly payments to the IRS throughout the year. If you overpay, you'll get money back when you file your return. If you're making a lot of money, you may be required to make at least quarterly payments. Your accountant will be able to advise you as to whether or not quarterly payments are required.

          It's always smart to consult with an accountant and stay one step ahead of the IRS if you live in the US.
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  • Profile picture of the author Derek S
    Don't forget to have the extra 6 grand handy to pay off your book keeper, personal and corporate accountant.
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  • Profile picture of the author Dan C. Rinnert
    Originally Posted by Scott Ames View Post

    You just made a big windfall of $20,000 cash from your launch, but don't spend it all. Remember to save some out for taxes or you'll be crying and having a fire sale in February.
    Nah. You just get yourself elected to Congress, then you can "forget" to pay your taxes and, if you ever get caught, you just say "oops" and move on. No biggie.
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  • Profile picture of the author Jesus Perez
    Can anyone recommend a good tax guy that can help with Internet Marketing related type businesses?
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