T Nation

T-Accountants Unite


#281

Sounds good. Could I not reimburse it and count it as a donation and deduct it from my personal taxes?

I've been running the not-for-profit for 3 years now. We started really small with only a spring and summer intramural soccer season, but we're now running pretty much year round. Revenues through 9/30 were actually $53K, so I need to figure this stuff out. I'm believing I'll end up hiring a CPA firm to complete our returns, but wanted to kinda get things in order before passing it over.


#282

Yeah, if you like losing money, sure.

Look at it this way

Option A:

Pay 500, get 500 reimbursed. Net cash flow to you, zero.

Option B:

Pay 500, call it a donation, get a deduction (assuming you itemize.). A deduction is a reduction in taxable income, not tax. So if you have an effective rate of 10%, you save $50 in tax. Net cash flow to you, negative $450.

Your call.


#283

Yeah, if you like losing money, sure.

Look at it this way

Option A:

Pay 500, get 500 reimbursed. Net cash flow to you, zero.

Option B:

Pay 500, call it a donation, get a deduction (assuming you itemize.). A deduction is a reduction in taxable income, not tax. So if you have an effective rate of 10%, you save $50 in tax. Net cash flow to you, negative $450.

Your call. [/quote]

Dnag! Mad Accounting Skeelz just like CPA One !


#284

ha.

Look, one of the first and very grave mistakes people make is to hear or think "tax savings" and decide that is the correct course, end of thought, no more math, that is it, decided, I'm doing it.

People do it all the damn time, and it drives me nuts. Just because someone has a "tax savings" doesn't mean they are positive cash flow. Sometimes paying more in tax actually nets you better cash flow, which means more wealth, even though your tax bill is higher than it would have been if you choose option B.

Don't get me started on people's reactions to tax returns.


#285

Clinet: Yeah I get $10,000 back from the IRS...

CPA: You know you just gave an interest free loan to the government. Maybe we should adjust your W4?

Client: No, I like getting something back every year, because I can not save the money myself...

Like that?


#286

Those people are the best possible case in regards to those that I'm talking about. They at least understand what is happening.


#287

Funny.

My accountant always alludes to how things might be done in the real world too.

One wonders....

IS HE TRYING TO TELL ME SOMETHING!?!


#288

Depends whether he is cooking or not.


#289

I have, I donno, 10 friends that just don't understand this concept!

I'm like, open a savings account and have 5% of your paycheck direct deposited or auto transferred and don't touch it. IT THE SAME THING except you'll get a little bit in return. Better than the deal Uncle Sam has going...


#290

Back on the thread topic, I might be attempting the CPA exam again next year, God help me...


#291

Yep. I'm a SALT indirect guy, but once I volunteered helping Detroit folks file their returns, and once I punched in their data into the software, and the EITC bounced back with their refund, it was like their day was made. Nevermind the few that got upset when their refund wasn't the same or better than the previous year and took it out on me.

It was the ones that came right out and told me they made it a point to stay under the threshold of earnings just so they would qualify for the credit that made me want to reach across and strangle them. Too many of them know how to "play the game" in order to get the most handouts, and not just from income tax. There I was, busting my ass for free on a Saturday in the inner city, only to learn how things really worked. That turned me off from volunteering again.


#292

Yep. I'm a SALT indirect guy, but once I volunteered helping Detroit folks file their returns, and once I punched in their data into the software, and the EITC bounced back with their refund, it was like their day was made. Nevermind the few that got upset when their refund wasn't the same or better than the previous year and took it out on me.

It was the ones that came right out and told me they made it a point to stay under the threshold of earnings just so they would qualify for the credit that made me want to reach across and strangle them. Too many of them know how to "play the game" in order to get the most handouts, and not just from income tax. There I was, busting my ass for free on a Saturday in the inner city, only to learn how things really worked. That turned me off from volunteering again.
[/quote]

Sounds like a good way to reform liberals. Spend a day filing taxes for the poor underserved.


#293

18 months ago, I decided to go back to school to pursue a career change to Accounting. I still have to wait to take Tax II in the summer, but am done with all of my other courses. Luckily, I have enough credits to start sitting for parts of the exam and I hope to have at least 2 sections done by the time I take my final course.

I know this question has been asked nearly as many times as where to find jeans that fit right, but I was hoping for a little input to make sure I was heading in a sound direction for studying.

Aside from being mad, crazy expensive, I don't know if I need all of the resources that Becker offers. I am not good with paying attention to lectures or even problem walk-throughs; I work best when I tear the problem apart myself. I was thinking something like Wiley or Gleim might be a good choice as they fit into my current budget. Mostly, I am looking for a way to practice answering problems over and over and over again until I weed out my weaknesses.

Luckily, I will be staying at my current job, at least through graduation, as I work at a college that not only pays for my classes, but also provides me with a lot of down time in my office to study. I guess I am mostly checking to make sure I am not limiting myself if I decide to not go the Becker route.

Thanks, SP


#294

I've used Gleim. The only negative thing I'll say is that study questions repeat themselves. So, if you go with Gleim make sure you work through the questions even when you know the answer is "C". That's easier said than done, beleive me. My wife is using Becker (Just the books and online stuff). It's basically the same exact thing. I wouldn't waste money on the lectures if you don't learn from them.


#295

Thanks for the input USMC and especially the heads up on finishing the question. I have a nasty habit of skipping the rest of the question when I recognize the first 5 or 6 words.


#296

Ya me too, lol. Drill it into your brain man...

The good thing is questions on the exam will at times be word for word what are on the study guide. Unfortunately the #'s are different so you still have to know how to find the answer.


#297

I'd suggest Becker due to the multiple methods you will learn.

Everyone learns via visual, auditory, and kinestheticly.

Watch video and go through book with them, do practice problems, whether you get it right or not, read all of the reasons why the right answer was right and the wrong answers were wrong (you end up studying 5x as much stuff this way), and repeat.

Then go through, read each chapter again, redo the sections, and take final practice test.

I found no value in going to live sessions, but I never had any questions to ask the proctor.

Try getting an offer from a public accounting firm, a lot of times they will reimburse you or pay for it up front before you even start work.

I've tried Gleim, and it is extremely detailed and boring as hell, and is far from the most efficient way to pass the exam.

But you can't beat the cost.


#298

I'm a CPA and work in tax accounting: individual tax, corporate tax, estate tax, shrimp and potatoes, shrimp burger, shrimp sandwich. That- that's about it.


#299

Any other accountants in management accounting, project/cost accounting, etc. roles?


#300

What would one expect to pay for a 1120S tax form and state franchise reports for a business that was incorporated (LLC S-election) from October-December? Also, how long would that typically take (man hours)? I provided them with about 50 receipts of startup expenses.