Leaderboard

I probed this morning, and she has not included it as income, so no deduction. You'd think the bookkeeper would have known that, wouldn't you.

She can only write off bad debt if she has taken it as income (as in accrual accounting). If she's cash-basis, here "write-off" is simply NOT taking as income funds she is owed but never got. I've shown this to clients who *insist* on seeing it as "other (owed) income" with a "bad debt" line - all in the "other expenses" section. So it zeros out, but you "took" the debt. That is *only* for clients whose tiny brains simply cannot fathom that the can't take as "bad debt" money they never received but also never claimed. If her SE business runs on accrual, then yes she claimed it as income and bad debt goes on the Sch C. Because it offsets the SE tax already paid on income she doesn't have.

The tip portion the waitresses received is not an employer expense. Only the employer's portion of the FICA/Medicare on the tips is an employer payroll tax.

In other words, that P&L wasn't generated from a balanced set of books where the numbers all tie in. If this statement was generated from a set of books using double entry bookkeeping, where was the credit side of the entry posted that allowed this line item to appear on the P&L? What else is fabricated or incorrect?

The Dell No 2 on your suggestion is a Latitude E-6430 which is very old. My little daughter uses a Latitude E-6440 and she uses it to play and watch videos, not as working tool. I do think that I rather buy 2 or 3 DELLs with the price of an Apple. If one of my dell dies, I have one or two more to replace them. In your suggestions, if I apply my theory, I would buy at least 5 computers with the price of one from my suggestions. I guess it is a matter of taste. Personally, I love when my computer boots up and opens ATX in less than 2 minutes.

are you talking his own W-2? does it balance out with box 7 as tips then.. the rest should still balance... Or in a new restaurant I have- she is not claiming the additional tips or credit cards tips coming thru the till - says they are hers... and not going anywhere - different scenario! As I said they need to show as her income - other...

... and the payroll tax expense deduction must be reduced by the amount from line 4 of the form 8846, which is the employer's share of fica and medicare taxes on the tips used to claim the tip credit.

There is no filing requirement in CA if the income is less thsn $17K single; $34K MFJ. It goes up $5K for each one over 65. This applies to Res. & NR.

THE GOLF BALL AND THE SAND WEDGE A woman takes a lover home during the day while her husband is at work. Her 9-year old son comes home unexpectedly, sees them, and hides in the bedroom closet. Then the woman's husband also comes home. She puts her lover in the closet, not realizing that the little boy is in there already. The little boy says, 'Dark in here.' The man says, 'Yes, it is.' Boy - 'I have a golf ball.' Man - 'That's nice.' Boy - 'Want to buy it?' Man - 'No, thanks.' Boy - 'My dad's outside.' Man - 'OK, how much?' Boy - '$250' A few weeks later, it happens again that the boy and the lover are in the closet together. Boy - 'Dark in here.' Man - 'Yes, it is.' Boy - 'I have sand wedge.' The lover, remembering the last time, asks the boy, 'How much?' Boy - '$750' Man - 'Sold.' A few days later, the boy's father says to the boy, 'Grab your sand wedge and golf ball, let's go outside and have some short game practice.' The boy says, 'I can't, I sold my ball and sand wedge dad.' The father says, 'What?! How much did you sell them for?' Boy - '$1,000.' The father says, 'That's terrible to overcharge your friends like that. That is far more than those two things cost. I'm going to take you to church and make you confess.' They go to the church and the father makes the little boy sit in the confession booth and he closes the door. The boy says, 'Dark in here.' The priest says, 'Don't start that shit with me again. You're in my closet now!