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If you could earn more and pay less SE tax would you?
Posted by  sigtogo/OR of OR on 2/5/19 12:42am Msg #602855
The short of it is I am suggesting you revisit you state statute.
You may be able to charge more for your services, and deduct more from SE tax should you wish to.

Lets look at two possible scenarios:
First, lets say you notarize seller docs for 3 sellers, one property. There is a deed and an ownerfs title affidavit. In you scenario there would be two notarial acts as all three sellers are listed on one certificate for each doc. So you charge $10 for 2 certs.

According to several folks in this thread that have quoted Colorado law, a RULONA state just like CA and OR, the notarial act would be six. Three people acknowledge the deed, and three people swear/affirm to the affidavit. We would charge $30 in Colorado.

Lets say for ease of discussion, we both charge $60 for the job. I can deduct $30 from SE tax due and you can only deduct $10. You would need to pay SE tax on $50 and I would pay SE tax on $30.

Another example for a R/E loan signing. Say you have a couple and 10 documents with 10 certificates that need to be notarized. You would have $50 with no SE tax due on 10 docs/certs. I would have no SE tax due on 20 notarial acts. If we both charge $100 for the job, you pay SE tax on $50, I pay none.

So far, you have paid SE tax on $100 and I only pay SE tax on $30. Multiply this by the number of signings you do in one year and the amount you pay in SE tax would likely be significantly more than I.

Caveat: Of course this does not take into consideration that I can charge more for notarial services since I am providing more notarial acts. Also, for this discussion I did not include expense deductions, rather just a simplified way to look at the difference between your current way and a potential change to benefit you should you wish to avoid some SE tax. Now if you want to pay into SE tax, this manner of delineating notarial acts from signing agent fees is irrelevant. Depends on your age and circumstances.

The above is my opinion, not gospel, based on what I read in Colorado statute and in the interest of possibly increasing your profits and lowering your tax liability; I suggest reading the statute and having a conversation with your CPA or attorney.
Hope this gives you food for thought.
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Messages in this Thread
 Colorado Notary Question-SE Tax - Brandi Solano on 2/3/19 10:13am
 Good question. No authoritative answer. - Lee/AR on 2/3/19 12:08pm
 Do you complete and stamp one jurat or two? - Linda_H/FL on 2/3/19 12:21pm
 wow, Linda, not so in Oregon! Its the number of people. -  sigtogo/OR on 2/3/19 1:19pm
 Not sure if we'd get away with that here in FL - Linda_H/FL on 2/3/19 1:59pm
 Re: wow, Linda, not so in Oregon! Its the number of people. - Brandi Solano on 2/3/19 2:19pm
 Ack/jurat certs are PROOF of the notarial act - LisaKT/CA on 2/3/19 4:29pm
 Re: Do you complete and stamp one jurat or two? - LisaKT/CA on 2/3/19 2:06pm
 Re: Ive always done as Linda since early 1990 - Carolyn Bodley on 2/3/19 6:37pm
 think of all the taxes you may have unnecessarily paid :) -  sigtogo/OR on 2/4/19 3:51pm
 Re: How so? - Carolyn Bodley on 2/4/19 8:43pm
 Re: Correction one certificate /one act // not one doc n/m - Carolyn Bodley on 2/4/19 8:45pm
 If you could earn more and pay less SE tax would you? -  sigtogo/OR on 2/5/19 12:42am
 Re: If you could earn more and pay less SE tax would you? -  VT_Syrup on 2/5/19 6:47am
 Re: If you could earn more and pay less SE tax would you? - LisaKT/CA on 2/5/19 6:58pm
 Re: If you could earn more and pay less SE tax would you? -  VT_Syrup on 2/5/19 8:08pm
 Colorado Notary Fee CRS 24-21-529(1) - ABC Legal Docs, LLC - Jerry Lucas on 2/3/19 6:09pm
 Found this interesting - Luckydog on 2/3/19 8:25pm
 #2 page 5 IRS sorry n/m - Luckydog on 2/3/19 8:26pm
 I'm confused by your post. The deduction for SE tax is a -  MW/VA on 2/4/19 10:21am
 Possibly focusing on the wrong question? -  JanetK_CA on 2/4/19 2:56am
 Re: Colorado Notary Question-SE Tax -  Doris_CO on 2/4/19 11:04am
 Colorado Notarial Acts CRS 24-21-502(6) - ABC Legal Docs, LLC - Jerry Lucas on 2/4/19 12:38pm
 While I reach same conclusions as you Jerry, it seems... -  sigtogo/OR on 2/4/19 3:35pm
 Colorado Notarial Acts - ABC Legal Docs, LLC - Jerry Lucas on 2/4/19 4:00pm
 Re: ABC - Carolyn Bodley on 2/4/19 5:02pm
 Colorado Notarial Acts CRS 24-21-502(6) - ABC Legal Docs, LLC - Jerry Lucas on 2/4/19 10:48pm
 Re: Colorado Notary Question-SE Tax - Carolyn Bodley on 2/4/19 4:52pm
 Re: Colorado Notary Question-SE Tax - LJCA on 2/4/19 7:57pm
 My last .02 FWIW...about the suggestion to - Linda_H/FL on 2/5/19 6:18am
 Re: My last .02 FWIW...about the suggestion to -  JanetK_CA on 2/5/19 2:03pm
 Well agree to disagree - LisaKT/CA on 2/5/19 6:37pm
 CA Handbook & Newsletter defines notarial act - LisaKT/CA on 2/4/19 11:46am
 Colorado State Archives Charges $10 for Notary Services - ABC Legal Docs, LLC - Jerry Lucas on 2/5/19 12:32pm



 
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