Since you only need bank statements now for taxes - you no longer need receipts, I always always use my business debit card, its my receipt. At the end of the year I go through bank statements, highlight all the business purchases and can easily add up everything spent. I rarely use checks anymore. If your writing a check from an account - then you have a debit card for the account, so why not use it? It makes more sense if your writing off purchases to have a debit or credit card record of it and they probably had people writing checks to friends and calling it a write off, using a credit card machine helps against that... I can see their point in this. I'll have to let the salon know, they still use checks - thanks for the information
-Jess On Sep 15, 5:16 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 this will be repealed or not.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]. 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