Airline Travel Tax Bookkeeping Question

by John A Ohara
(Chelan ,WA)

Airline Travel Tax

Are the taxes on airline travel tickets deductible by a traveler who itemizes on Form 1040?

Canadian Tax deducted from payment for services rendered

How do I book this payment of Canadian Tax?

Category for Estimated/Federal Taxes Paid

by Linda
(NC)

For a small business on Schedule C, when Federal and Estimated Taxes are paid during the year, what is the Expense/Category in bookkeeping? Are these payments taken as deductions on Schedule C?

For Sole Proprietors (small business Schedule C), Federal and Estimated Taxes paid during the year should be categorized as an Owner's Draw (which will show on the Balance Sheet) with subcategories for Federal Payments and State Payments.

Example:
Owner's Draw: Federal Payments
Owner's Draw: State Payments

These payments are not taken as deductions on Schedule C, but should be entered and show up on the Federal and State tax forms as estimated payments made. (For Federal Form 1040, this would be line 63 "2008 estimated tax payments and amount applied from 2007 return").

Council Tax

If I work as a bookkeeper for a company and I find a note of a cheque paying Council Tax, what kind of expense is that? The business doesn't pay Council tax but Business Rates, but if a cheque was paid from the business for Council Tax, which Account from the Chart of Accounts should I use to enter this transaction into the accounts system (Sage)?

Include Tax or Not?

My husband and I have atarted a small business and I am keeping the books. Using a CASH method and an old fashioned DOME booking record book. When I am totalling up the days reciepts, do I include the tax that was collected in the daily total? This would be the TX state tax that is later paid out quarterly.

Income Tax On Inventory

by Roselda
(Tucson, Arizona)

What if you have inventory example like Mary Kay or Avon. Can that be put on your tax return and will it affect if any refund.

Journal Entry for Employers Tax Increase

by Susan
(PA)

I use Quickbooks Pro 2010. My employer odes not subscribe to any Payroll updates. We use ADP to do our payroll. When I went to manually enter the payroll checks into my Quickbooks, I noticed the SS rate changed and the employers rate changed. I can not change any rates in Quickbooks ao I need to make some Journal entry to balance the accounts....new at this...help??? Thank you.
Susan

Lowest Tax 2 Pay Which One Please

I made gross 1099 for 2010 $51,049.00 MY DEDUCTIONS ARE MINIUM OF $10,000 SO 15.3 % se TAX AND CARRY FORWRD THIS MY TAX INC IS APPROX 41,000.00 why double tax myself should I schedule C I don't have any deductions sch A or home mortg interest 2 write off am I correct in paying on $51,049 minus my exemption?

Payment of Pro-rated Real Estate Taxes With Your Rent

by Edward
(Reston, Virginia, USA)

SLH-student-Reston

Studing accounting I understand the payment of the monthly rent. Also the landlord is charging once a year, the tenant's portion of the real estate taxes. Do I charge this taxes to RENT or to TAXES? Please advise.

Edward



Hi Edward,

Thank you for your question.

I believe any payments received from the tenant would be charged to rent as the landlord will need to report all monies received (other than deposits) as income.

The landlord would then deduct the full amount of real estate taxes paid in the year as an expense against the income.

Sales Tax?

I work in a restaurant and when i enter my sales into my general ledger i put sales food.....amount, sales bar.....amount and then the 2 taxes. what code do the taxes go under? Assets or liabilities? This is where I'm having a problem. Thanks

Sales Tax & Customer Returns

by Anna
(North Carolina)

A customer has returned an item ( price and sales tax). The client wrote a check to the customer for the refund. My client uses specialized journals.

I just finishied my bookkeeping class on-line and there was very little information given when you have a company using sales tax / merchandising accounts.

My question is in two parts..

1) when recording the refund payment in the cash payments journal, will I seperate the sale amount and sales tax on to two separate lines, since she has one ledger for sales returns and one for sales tax ?

2) Will this refund of sales tax be put into the sales tax journal as a credit?

Hello Anna,

Thank you for your inquiry.

1) Since she has one ledger for sales returns and one for sales tax, you should go ahead and separate the two amounts.

2) The refund of sales tax be entered as a debit along with the Sales Returns.

Good question!

Shipping Boxes, Resale or Taxable?

We usually ship our products in boxes to our customers. When we purchase these boxes for inventory, would they be considered resale items or should we pay taxes on the boxes?

Tax Filing

Tax Filing

We had a tornado hit our building in 2010 incurring large losses. Can we file the loss on the 2010 1120 and carryback the loss to get a refund of taxes paid in 2009? Where would you put the losses of the leasehold improvements on the 2010 1120 Form?

Tax Question

An adjustment to income is the same as an itemized deduction?

Taxation Laws for BAS Agents

by Ashley
(Australia)

What are the taxation laws apply to a bookkeeper who is working as a BAS service provider?

Taxes For Income Journal

by Bert
(Logan, Utah, USA)

Do I put the taxes I pay on purchases in the same column as the taxes I collect on sales and pay to the State?

VAT

What does VAT mean?

What taxes must be claimed when selling personal items.

by Thomas
(Harrisburg,PA)

I have accumulated a large quanity of computer parts over the past 20 years. I am located in the state of PA and have sold the parts to a tax exempt reselling company (a copy of the tax exempt cert has been provided by the buyer)in the state of FL. The total value of the sale was $12,000.

Can you tell me what if any taxes I would owe the state of PA for this transaction?

Hello Thomas,

Thank you for your question.

Sales tax is only owed to the state when charged to a customer. Since your customer was exempt from sales tax and you didn't charge sales tax, you do not owe the state any sales tax on the transaction.

However; As you received $12,000 for the sale of computer parts, you will owe the state of PA income tax on the 12,000 (minus any expenses). The personal income tax rate in 2007 was 3.07%, so you would owe appoximately $368.

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