| Author |
Message |
Cecelia
| | Posted on Tuesday, February 15, 2000 - 11:10 pm: | |
I will check with my CPA, in Calif, and forward whatever information I receive. I have copies of last year's filing, but would not presume that those filings are what are required for the current year. |
Ghostbuster
| | Posted on Tuesday, February 15, 2000 - 9:44 pm: | |
Sorry Martin, but this was several years ago and I didn't give my name or ask theirs. You might try calling the 800-# and try asking them yourself. Or, if you are paying a CPA, have him/her do the calling. |
Martin Arguello
| | Posted on Tuesday, February 15, 2000 - 8:31 pm: | |
Ghostbuster,
If you don't mind, could you e-mail me the name and number of the IRS pukie you talked to?
Thanks! |
Ghostbuster
| | Posted on Tuesday, February 15, 2000 - 4:23 pm: | |
The last time I was in the split situation you are now in, the friendly piranha at IRS said to use both the Schedule C and the Form 2106, Employee Business expense, and apply income and expense from the 1099 portion of the year to the Schedule C and the 2106 from the w-2 portion of the year.
Honest to God, we really do need to be on a national sales tax like the rest of the world. This annual self sacrifical bloodletting has got to stop.
Oh, and lets not also forget my personal favorite, the Alternative Minimum Tax on 1040, line 51. Talk about a bend over and let them drive job... Whoa! |
Martin Arguello
| | Posted on Tuesday, February 15, 2000 - 3:16 pm: | |
I recently took my tax info to a CPA in town. I explained to him how as independent adjusters we're kind of employees and kind of independent contractors. I showed him my 1099-misc from the Worley Co. as well as the w-2 from the same source. Then I explained that as far as I knew, I'm supposed to file a schedule C in order to deduct all my un-reimbursed expenses (showing the 1099 misc as income for that schedule C).
However, he said that to the best of his knowledge, we should be classified as employees, and I shouldn't be filing a schedule C. I called another adjuster and talked to his CPA who told me he filed the schedule C because that adjuster's previous CPA had done that.
My question is this: How many of you use a schedule C and how many just deduct your expenses on a schedule A?
My CPA advised that if we can at least establish that it is an industry standard or custom to file schedule Cs for our profession, then that would give us some basis to defend ourselves in an audit situation. As it is, he can see it going either way.
Thanks for your responses! |
Martin Arguello
| | Posted on Monday, January 31, 2000 - 9:08 am: | |
Woody,
Okay, that makes complete sense. Thank you for your input. |
woody
| | Posted on Monday, January 31, 2000 - 1:09 am: | |
According to the IRS, you can apply the per diem rate for the area in which you are working for both meals and hotels, however, if you are audited you have to supply verifying reciepts to back the per diem rate. If the actual expense is less than the per diem rate taken for the area, that becomes taxable income to your personal filing.
Best advice, be real careful and consult a wise accountant that will be sitting next to you at the audit. I'm busy that day!!!! |
Martin Arguello
| | Posted on Sunday, January 30, 2000 - 11:04 am: | |
So, then, those of you with tax attorneys and CPA's are saying that we can take both the lodging and meal per diem amounts. And in addition, there's all the other expenses we incur which are also deductible (i.e. office supplies, vehicle mileage, etc., etc.).
Did I get that right? Does anyone know which IRS publication deals with this issue? Before I go out and pay a tax attorney, I'd like to take a look at the relevant code for myself. Thanks all for your input! |
ben thar
| | Posted on Sunday, January 30, 2000 - 8:29 am: | |
taxxed, to answer your question on how Per Diem works. It is like this when you leave the house for an assignment mark your calendar with a bix red X , and when you return mark the calendar with another X. Now this will get technical. Count the number of days between the X's. That will represent your days out. Now take your days out and multiply by the per diem rate for the area you worked in. That amount of money is not taxable. I use a tax attorney and they are well worth the money. If you are still confused buy the professional services. |
Tom Joyce
| | Posted on Sunday, January 30, 2000 - 12:47 am: | |
Taxed, do yourself a favor and go to a tax professional. Its a worthwhile expense |
taxxed
| | Posted on Saturday, January 29, 2000 - 10:59 pm: | |
Ghostbuster- I am reading that per diem means according to"SELF EMPLOYED"INDEPENDENT CONTRACTORS"-Meals are at the best will be 30$ a day ,then 50% of that is 15$ a day allowed.Then hotel is actual charge.Then other expenses.(Office supplies,auto,etc.) Help! |
storm dude
| | Posted on Saturday, January 29, 2000 - 8:39 pm: | |
I take what my accountant tells me to take:
That is the MAX of $180.00 per day for every night away from home on CAT duty. |
Ghostbuster
| | Posted on Saturday, January 29, 2000 - 5:22 pm: | |
Geez-Louise, Taxxed! Where is your sense of humor?
Has this cold weather froze your funnybone? I bet has a kid, you were the one that would press his tongue to the frozen pole & get it stuck!
Of course, anyone can use the per diem rate. that's what there for! |
taxxed
| | Posted on Saturday, January 29, 2000 - 2:10 pm: | |
It appears to me that this is an issue that the so called "OLD TIMERS" dont want to address.WHY! |
taxxed
| | Posted on Saturday, January 29, 2000 - 2:06 pm: | |
Ghostbuster what do you mean? CMON! |
Ghostbuster
| | Posted on Saturday, January 29, 2000 - 12:03 pm: | |
Martin,
I use the IRS rates for both catagories as stated in the IRS publication 1542. However, because you're you, you get to only use your actual incurred expenses. After all, there are millions on welfare depending on you for that welfare check! Ha! Ha! Have a nice day. |
Martin Arguello
| | Posted on Saturday, January 29, 2000 - 10:07 am: | |
So when you all say you take the per diem rate, are you talking about both the food AND the lodging rates?
When I did my taxes last year, I only took the food rate and then deducted the lodging exactly as incurred. However, if anyone could confirm that it's legal, I would LOVE to take both the food and lodging per diem deductions, as I can usually find much better deals on lodging than the amount allowed for a daily hotel room.
Some advice here would be greatly appreciated! |
Chuck Deaton
| | Posted on Friday, January 21, 2000 - 9:39 am: | |
I basically keep a diary and use a Master Charge to pay rent, buy food and gas. At the end of the year I get on the internet, go to the CONUS per deim site and record the rate per day in the various areas I have worked in. As my Mastercharge bills come in each month I mark the charges that apply to my IA business. At the end of the year I take all of this to my accountant and he does my household taxes. |
taxxed
| | Posted on Friday, January 21, 2000 - 3:09 am: | |
Would someone please take the time to explain how this Per Diem thing works? Its tax time and some of us rookies would like to hear some advice from some of you seasoned old timers on this subject. Is this the way to go? If so then how does it apply to "Independent Contractors"? Any information would be greatly appreciated. HELP! |
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