I have always used a business credit card to pay for all salon product and supplies. More documentation the better when it comes to taxes. I pay the bill in full each month so that I avoid interest charges, I also save on COD charges when products are shipped to me. I earn points on this credit card, too and there is no annual fee. Credit cards can help you save money if you use them the right way. I get a free airline ticket to the Las Vegas Hair and Nail Conference every other year because of my responsible use of my business credit card. Credit cards are not the root of all evil, irresponsible credit abuse is.
Katherine St. Louis, MO Sent from my iPad On Sep 15, 2010, at 9:59 AM, Rhonda Kibuk <[email protected]> wrote: Personally this sounds like a way to INCREASE credit card debt in America. May this is an underhanded way to bail out the banks, yet once again. R On Wed, Sep 15, 2010 at 8:16 AM, Diana Bonn <[email protected]> wrote: I know this is boring to some, but you have to realize that this impacts the way you file your taxes (write offs/deductions) next year for your nail biz. So if you know what is going to happen, you can simply change your buying habits to save you alot of grief and bull crap when you do your 2011 taxes, As I stated before, this new tax requirement concerns our PURCHASES of products, services goods for your business. If you purchase more than $600.00 per company, you have to file a 1099 form and give it to this company. Example, you purchase all year long 600.00 worth of office supplies at Staples, your receipts add up to 600.00, you have to contact staples, get their Federal ID number, and GIVE THEM a 1099 form. How you can avoid this new tax requirement is either pay by credit/debit card.....you DO NOT have to file a 1099 form if you pay by credit/debit card. If you pay by cash/check you have to file the 1099 form. If you don't want to file a 1099 form and your receipts total up to 600.00 or more, YOU CAN'T write it off as a deduction. Anyway, below is a post I received about the Senate trying to block this. It failed. A couple of Senators even tried to make the filing of 25 or more employees and even up the 600.00 to 5,000.00 dollars. It didn't work. This is all part of the Obama Health Care package. As I hear more I will let you know. This all just happened and I can't find anything in the news as of right now. I don't know if this will be repealed or not. If the Fall elections change in the House and Senate, don't know if this will get changed. I just wanted you to realize that starting in January 2011 you may want to take advantage of anything you pay with cash/check and expect to spend more thatn $600.00 at one location, you may want to change to credit/debit card to save you the headache of filing 1099 forms. diana from indiana By Alexander Bolton - 09/14/10 12:47 PM ET The Senate on Tuesday defeated an effort to strip a controversial tax-reporting provision from the sweeping healthcare law Congress passed earlier this year. In a 46-52 vote, lawmakers killed an amendment sponsored by Sen. Mike Johanns (R-Neb.) that would have saved businesses and nonprofit groups from having to report an array of small and medium-sized purchases to the Internal Revenue Service. A handful of Democrats voted for the Johanns proposal, including Sens. Evan Bayh (Ind.), Michael Bennet (Colo.), Blanche Lincoln (Ark.), Ben Nelson (Neb.), Mark Pryor (Ark.), Mark Warner (Va.), and Jim Webb (Va.). The vote puts the Senate on track to pass small-business assistance legislation this week or early next week. The U.S. Chamber of Commerce and other business groups had lobbied furiously in favor of the Johanns amendment. Business groups argue the new requirements impose a heavy cost on small businesses and will harm the economy. The provision, which is estimated to raise $17 billion over 10 years to pay for a new prevention and public healthcare fund, requires businesses and other groups to file 1099 tax forms to report purchases from a single supplier that total more than $600 in a year. PLEASE NOTE: That's a 1099 for each and every time a $600 purchase or service is transacted. It's going to add to the cost of whatever service or product the purchaser does. An alternative to Johann's amendment sponsored by Sen. Bill Nelson (D-Fla.) also fell short of passage. Nelson's proposal would have increased the reporting threshold to $5,000 and eliminated the requirement for businesses with fewer than 25 employees. Nelson's amendment failed by a vote of 56 to 42, four votes short of the 60 needed to cut off debate and move to a final vote. Republicans expressed concerns over the Nelson alternative because it would have been paid for by repealing a tax break for large oil-and-gas producers. Senate Republicans said they were not surprised the Johanns amendment did not attract more votes, citing staunch opposition from President Obama. "The White House does not want to set the precedent of rewriting the healthcare bill," said a GOP aide. "They don't want to admit they made any mistakes in the bill before the election." Democratic leaders scheduled the vote on the Johanns amendment to secure the support of Sen. George Voinovich (R-Ohio) to advance the small-business bill. Voinovich had demanded consideration of the small-business reporting provision before agreeing to a final vote on the broader bill. The legislation would provide $12 billion in tax cuts to small businesses and set up a $30 billion Small Business Lending Fund. It would allow businesses to write off up to $500,000 in capital investments and 50 percent of the cost of new equipment. It would also increase to $10,000 the tax deduction for small business start-ups. Julian Pecquet contributed to this story. This story was posted at 11:59 a.m. and updated at 12:47 p.m. -- You received this message because you are subscribed to the Google Groups "NailTech" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/nailtech?hl=en. -- You received this message because you are subscribed to the Google Groups "NailTech" group. 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