Discussion:HELP! growing out of a Sch C business

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Revision as of 20:30, 31 March 2007
Kevinh5 (Talk | contribs)
(no eitc, more SE)
← Previous diff		 Revision as of 20:32, 31 March 2007
MsTwizz (Talk | contribs)
(Man! I'm so sca)
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She should be proud to have such a profitable business! But, yes, I'd talk about S corp now.}} She should be proud to have such a profitable business! But, yes, I'd talk about S corp now.}}
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 +{{ForumReplyPost|UserID=MsTwizz|Date=31 March 2007|Text=Man! I'm so scared to break this to her! She's going to have a heart attack!!!! :o)}}

Revision as of 20:32, 31 March 2007

Discussion Forum Index --> Tax Questions --> HELP! growing out of a Sch C business

MsTwizz (talk|edits) said:

31 March 2007
Hey everybody,

I think I'm in over my head on this one. It's a simple Schedule C, but my client's business is growing fast. She owns a very successful hair salon. When I figured her taxes this year, she owes $27,000! There's no way! Last year, she earned only $100,00 less and only owed $3,600!!!! I am thinking of taking it to another tax accountant, have them look it over, and let me know what they think? and I am willing to pay for that. Is this wrong? Would any of you be interested in checking my figures?

Also, I am wondering if it is time that she turn her business into a S- corp or C corp (she may be making too much money to be an S-corp). The Self-employment tax is killing her!

Thanks!

Kevinh5 (talk|edits) said:

31 March 2007
how much net does she show?

Deback (talk|edits) said:

March 31, 2007
Did you check for typos? Earned $100 less last year, and she owes $23,400 more this year? Hmmm...

Kevinh5 (talk|edits) said:

31 March 2007
I saw a comma in there and read it as $100,000

Deback (talk|edits) said:

March 31, 2007
The word "only" led me to believe the comma should have been a decimal, especially with only two zeroes after.

MsTwizz (talk|edits) said:

31 March 2007
Yes, I checked this over and over again.

Look! last year: gross income $460,967 expenses" $441423 net profit $19,544

this year: gross income: $563,202 expenses: 473,804 net profit: $89,398

MsTwizz (talk|edits) said:

31 March 2007
yea, sorry.....forgot a zero $100,000 less

It looks like her income is going up and her expenses are not going up in proportion with her income....is there a better taxable entity she should be in. Her business is going to keep growing!

Kevinh5 (talk|edits) said:

31 March 2007
no eitc, more SE tax, seems right to me

She should be proud to have such a profitable business! But, yes, I'd talk about S corp now.

MsTwizz (talk|edits) said:

31 March 2007
Man! I'm so scared to break this to her! She's going to have a heart attack!!!! :o)
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