Cycling and bicycle discussion forums. 
   Click here to join our community Log in to access your Control Panel  


Go Back   > >

Foo Off-Topic chit chat with no general subject.

User Tag List

Reply
 
Thread Tools Search this Thread
Old 03-11-12, 11:28 AM   #1
banerjek
Portland Fred
Thread Starter
 
banerjek's Avatar
 
Join Date: Oct 2005
Bikes: Custom Winter, Challenge Seiran SL, Fuji Team Pro, Cattrike Road/Velokit, РOS hybrid
Posts: 11,182
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 10 Post(s)
What questions do I need to ask my accountant?

Although I have a day job, I run a small consulting business. I'm organized as a single member LLC which gets taxed as a sole proprietorship meaning I really get soaked this time of year.

A major client is in another state and I'm being told I owe income taxes there in addition to income taxes in my own state. Is this actually possible? Aside from the fact that I do all the work where I actually live and don't go to that state, it seems like if I'm earning in one state, that same income shouldn't be subject to taxes in another state. Between a marginal fed tax rate of 25% + 15% self employment + almost 15% between the two states, that brings my marginal rate over 50%.

I have a meeting with the accountant next week. I don't mind paying my fair share but I feel like I'm getting hosed on some kind of technicality and want to know how I need to approach the issue with my accountant.
banerjek is offline   Reply With Quote
Old 03-11-12, 12:21 PM   #2
Artkansas 
Pedaled too far.
 
Artkansas's Avatar
 
Join Date: Oct 2005
Location: La Petite Roche
Bikes:
Posts: 12,858
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Email your tax accountant a link to this thread. He should have the answers you seek when you get there.
__________________
"He who serves all, best serves himself" Jack London

Quote:
Originally Posted by Bjforrestal View Post
I don't care if you are on a unicycle, as long as you're not using a motor to get places you get props from me. We're here to support each other. Share ideas, and motivate one another to actually keep doing it.
Artkansas is offline   Reply With Quote
Old 03-11-12, 12:53 PM   #3
banerjek
Portland Fred
Thread Starter
 
banerjek's Avatar
 
Join Date: Oct 2005
Bikes: Custom Winter, Challenge Seiran SL, Fuji Team Pro, Cattrike Road/Velokit, РOS hybrid
Posts: 11,182
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 10 Post(s)
Quote:
Originally Posted by Artkansas View Post
Email your tax accountant a link to this thread. He should have the answers you seek when you get there.
I've already emailed him a few questions as well as my understanding of the relative sections of law (which is pretty pitiful since it's just what I could glean from reading the appropriate government websites). But I've discovered that the more I understand, the easier it is for him to help me as some choices that may be appropriate for the majority of his clients may not be appropriate for me.
banerjek is offline   Reply With Quote
Old 03-11-12, 01:13 PM   #4
no1mad
Thunder Whisperer
 
no1mad's Avatar
 
Join Date: Apr 2008
Location: NE OK
Bikes: '06 Kona Smoke
Posts: 8,702
Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 100 Post(s)
Who told you that you owed in another State? I'm thinking someone got their wires crossed in payroll, but I could be wrong. Ain't MV a CPA type? He'd probably know.
__________________
Community guidelines
no1mad is offline   Reply With Quote
Old 03-11-12, 01:24 PM   #5
banerjek
Portland Fred
Thread Starter
 
banerjek's Avatar
 
Join Date: Oct 2005
Bikes: Custom Winter, Challenge Seiran SL, Fuji Team Pro, Cattrike Road/Velokit, РOS hybrid
Posts: 11,182
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 10 Post(s)
Quote:
Originally Posted by no1mad View Post
Who told you that you owed in another State? I'm thinking someone got their wires crossed in payroll, but I could be wrong. Ain't MV a CPA type? He'd probably know.
The accountant brought this up as a potential issue -- I did actually travel there for a single day. I know that having to file taxes in multiple states can be an issue for musicians and athletes. But by that logic, you'd think that anyone who gets sent on business travel is liable elsewhere which I know isn't the case.
banerjek is offline   Reply With Quote
Old 03-11-12, 02:05 PM   #6
Artkansas 
Pedaled too far.
 
Artkansas's Avatar
 
Join Date: Oct 2005
Location: La Petite Roche
Bikes:
Posts: 12,858
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Keep us posted. I'll be interested.

I'm writing a book for a publisher in England. I may have to pay taxes in two countries.
__________________
"He who serves all, best serves himself" Jack London

Quote:
Originally Posted by Bjforrestal View Post
I don't care if you are on a unicycle, as long as you're not using a motor to get places you get props from me. We're here to support each other. Share ideas, and motivate one another to actually keep doing it.
Artkansas is offline   Reply With Quote
Old 03-12-12, 06:08 PM   #7
spry
location:northern Ohio
 
Join Date: Jul 2006
Bikes:
Posts: 3,586
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Would hair plugs be considered a medical deduction?
spry is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -6. The time now is 02:12 PM.