digitalartist71[at]yahoo.com (Tim) wrote:

- quote -

You do not need a seperate Business checking account or any
business account, although if you register your biz in your
county they might require a biz acccount as a pre-requisite,
they do in Erie county, NY. Conversely some banks require a
county biz liscense some don't in order to open up a biz
account. You can use any account you want for business
purposes, you just have to seperate biz from personel. Same
goes for credit card purchases. You don't need a biz credit
card you can use any. Don't know how you got this idea, but
you have absolutely no reson why you can't do your taxes and
take what ever deductions you might have to take, and all
income recieved for biz and deposited in your personal
account is reported as a biz income. You do not have a
problem at all. Do find a good Preparer who has clients or
at least one that is in the same type of biz or similar biz
situation as you are. In some circumstances you can deduct
the preparers fees as a biz expense FROM your biz income.

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Tim wrote:

- quote -

I recommend against trying to get your Quickbooks in good
enough shape to import. You'll be better off figuring your
expenses and entering them directly into Turbotax.

- quote -

Other than making the recordkeeping a bit more complicated,
I don't see why that's a problem. All the money is yours,
and it doesn't matter what pocket you put it into or what
pocket you pay expenses out of.

- quote -

Why do you think you can't?

- quote -

Why do you think you can't deduct expenses if you don't have
a separate account?

- quote -

You get the better of mileage or actual expense, assuming
you've never depreciated your vehicle using any method other
than straight-line. Because of that, I recommend electing
straight-line depreciation.

- quote -

You must have a written record, which need not be
contemporaneous. Get out your invoices and receipts, figure
out where you went, and figure out how far it was.

Phoebe

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"Tim" wrote:

- quote -

Your situation is not so much legal as practical, and thus
to start doing 2004 better. There is no statute prohibiting
mixing biz and personal in a bank account, or even requiring
use of a bank account, or which says records consisting of
only a check register tallied onto sheets of paper is
inadequate - for a simple business it may be the easiest way
to do things if you deposit all receipts and reconcile the
bank statements. File your return based upon a good-faith
tally of what you have and don't worry about it.

Note that a question on Sch C is whether 2003 was your first
year in business, so that a reported loss is at least
partially explained. Further, over 4.5 million Sch Cs (about
25%) are filed annually reporting a loss, so it's a myth
that doing so significantly increases chances of audit. IRS
has to view the things more broadly and scientifically than
that to select the small % which are examined.

You mentioned you tossed out bank statements. Can you
obtain them online? My bank even has online pictures of
cleared checks, similarly for free.

Fred F.

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digitalartist71[at]yahoo.com (Tim) writes:

- quote -

File Form 4868 for an extension then bundle everything up
and do what you should have done when you went into
business: consult an accountant (after April 15).

The fact that QuickBooks can't feed TurboTax your deductible
expenses doesn't mean that they aren't valid expenses.
Contrary to what Mr. Gates might think, the computers
haven't taken over.

Phil Marti
Topeka, KS

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Ok..I am sole proprietor as of 1/2003 (i also worked full
time so I have a w-2). I am TRYING to do my taxes using
Turbotax Home & Biz and using the data from QuickBooks 2003
Premier.

I work out of my home that I pay rent on and also a portion
of the garage.

(obviously here's the problem): I have had ONLY one bank
account which is both perosanl and business...which I know
now is a no-no. A little too late now...so wondering if I
will even be able to deduct alot of my expenses or not? I
also do not haev any of my bank accoutn statements...just
records entered into QuickBooks, such as invoiced jobs, my
profits, and all my expenses with physical recepits is all).

If I can't, I owe taxes..which isn't right, because I really
made no taxable profit...my expenses way exceeded my income.
I get this feeling I am gonna lose out just ebcasue of the
mere fact I did not know I was SUPPOSED to have a seperate
businesss account (still learnign new stuff everyday!).

I have saved all of my fuel, repair, receipts for my vehicle
which i also bought in 1/2003. (I have setup my fixed
assets to be depreciated..but looks like TurboTax 2003 is
making it a mileage rate isnetad of actaul vehicle
expenses....so then I can't depreciate my vehicel using the
double depr. method. (from what i understand...uggh).

I also did not keep a vehicle mileage log! I can gues that
I used the vehicle for about 25% use and commuting also to
my full time job 50% and perosnal prob 25%. So I gues I
could make up a log book that reflects that....or do i HAVE
TO HAVE a log book? can I just have all my expense receipts
(for mileage rate or actual expense filing?) or do i haev to
have a log book for either method no matter what.

I also saved all my recipts for materials I have purchased
that I use to produce products, and also purchased materials
to build shop equipment.

As far as rent and utilities paid... I guess I can use a
percentage of the total expenses (rent, etc)? the percentage
being the area of my businees in relation to the total sq.
ft of the home? to make things even worse...i also moved in
the middle of the year to another home...and setup my
business there also!

as u can see.... a lot of headache... i am just really
wondering if i cannot use any expenses (because I don't have
perfect records, maily receipts, and QB data)...that I will
have to OWE money...or if I can use my expenses (i have all
receipts)...i will get a LARGE refund back. I really put
out more expenses than profit in my first 2003 year of
business.

I just don't want to do this wrong, then get audited..even
though I am not a large company at all.

thank you!

Tim

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