Posted by Becky on 4/30/05 3:56pm
Msg #35127
New Fees...
With the amount of cancellations I've been getting lately...I should add "shredding fees". I just finished shredding 6 sets of docs (make that 12 including borrowers copies) and that took up hours of my time!
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Reply by Lee/AR on 4/30/05 4:05pm
Msg #35129
I hear ya'...
Actually, I was thinking of turning them blank side out & wallpapering my bathroom.... whatchathink?? just kidding... (in case somebody decides to get all hypered up).
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Reply by rlogan-ca on 4/30/05 5:46pm
Msg #35145
Tax deductions?
I wonder if you can deduct them since they are considered supplies.
You'd need to keep a log. But how much would they be worth in deduction?
I wonder...
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Reply by Teddog_CO on 4/30/05 5:54pm
Msg #35147
Re: Tax deductions?
rlogan-ca
Good Question! I wish I could recoup the money for destroyed docs, but I (think?) you can take them only once (under supplies) when you purchase them. Not Sure maybe some one has the answer out there.
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Reply by rlogan on 4/30/05 6:05pm
Msg #35148
Re: Tax deductions?
Teddog_CO,
Since there is a fee for printing the docs and you are using your paper, ink and time,
I would imagine a tax preparer would find an amount you could deduct.
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Reply by Teddog_CO on 4/30/05 6:10pm
Msg #35149
Re: Tax deductions?
rlogan
Bet you're Correct!
Happy Signings!!!
The Teddog
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Reply by Anonymous on 4/30/05 7:04pm
Msg #35153
Re: Tax deductions?
Aren't you already deducting for the cost of the paper and toner when you make the purchase? It seems to me that there should be an additional charge for having to spend your time shredding papers. Can you charge extra for a cancellation?
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Reply by Teddog_CO on 4/30/05 7:24pm
Msg #35157
Re: Tax deductions?
Anonymous Hi!
In an ideal world we should get paid for our time. But, from what I've experienced I think we're luck to Get Paid Period! LOL We have marked diffculty getting a decent signing fee, fighting every inch of the way. I'm starting to think some SS think we do this as Hobby! It's a Real Shame I can't Clone my Really Great SS's. I would love it!!!
Best to You
Teddog
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Reply by Stephen_VA on 4/30/05 7:51pm
Msg #35162
Re: Tax deductions?
It seems to me. If you performed a service that you are not reimbursed for that you can take it as a loss. But I am not an accountant.
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Reply by John_NorCal on 4/30/05 10:52pm
Msg #35188
Re: Tax deductions?
I'm not an accountant, however, in my tax preparations I would not deduct for anything other than my actual cost of supplies, i.e. paper, ink, etc. Unfortunately you can deduct for the value of your time.
I like PAW's and Barry's suggestions below, their handling of this makes a lot of sense to me!
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Reply by Stephen_VA on 4/30/05 11:09pm
Msg #35190
Re: Tax deductions?
I wasn't actually playing the "deduction" angle. I was wondering if you could claim losses on unrealized profits. That is an issue for an accountant.
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Reply by John_NorCal on 4/30/05 11:14pm
Msg #35191
Deduction for unrealized profits? Not in my experience! n/m
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Reply by Stephen_VA on 5/1/05 9:10pm
Msg #35213
Re: Deduction for unrealized profits? Not in my experience! n/m
Your missing the point by getting lost in semantics. If you would normally charge for something, but someone won't pay you that is a loss. NOT A DEDUCTION!!!!!! DE..DUC..TION is different.
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Reply by Stephen_VA on 5/1/05 9:11pm
Msg #35214
What I was Saying Was
Is that I'm not sure how that LOSS is accounted for.
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Reply by Art_MD on 5/2/05 7:22am
Msg #35253
Re: Loss accounting
Simply put.
At end of year:
Gross income ($$ actually received) - expenses = Gross profit.
The fact that you didn't get paid for something reflects in a lower gross income and lower gross profit. So special accounting required. BUT, I'm not an accountant.
Art
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Reply by Anonymous on 5/2/05 8:39am
Msg #35263
Re: Tax deductions?
If you show the invoice in your books as income and then you are not able to collect the total amount, you can claim a deduction called "bad debt expense" which is income reported but not collected and NOT COLLECTIBLE! Hope this helps.
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Reply by PAW_Fl on 5/2/05 12:12pm
Msg #35309
Re: Tax deductions?
ONLY IF you use accrual accounting basis. If you use the cash basis for accounting, you typically cannot take "bad debt expense" or deduct unrealized income.
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Reply by JanetK/CA on 5/2/05 6:37pm
Msg #35400
What he said!
As usual, PAW FL is right. This subject came up last time I met with my accountant and he told me the exact same thing. I'd be very surprised if any of you are using the accrual method - which is a bit more complicated. (It you were, you probably wouldn't have to ask this question - but I'm not an accountant, either!) With cash accounting, you can only write off actual expenses -- like he said...
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Reply by PAW_Fl on 5/2/05 8:04pm
Msg #35421
Re: What he said!
Well, JanetK/CA, be surprised.  I do use the accrual accounting method. I just find it easier to do since that is what I've always used in corporate America and my previous businesses.
I would be surprised if I needed more than one hand to count all the NSA's that do use this method, though.
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Reply by CarolynCO on 5/2/05 8:24pm
Msg #35427
Re: What he said!
**I'd be very surprised if any of you are using the accrual method **
My CPA set me up using accrual in 1992 for my secretarial biz, and my signing biz is set up the same way.
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Reply by thnotary_NY on 5/2/05 8:29am
Msg #35262
Re: Tax deductions?
Losses are allowed in business provided they pass the *Facts & Circumstances Test* (IRS), although not exclusive, and you probably have to show profit motive.
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Reply by Barry on 4/30/05 10:03pm
Msg #35176
I always charge Cancellation & Shredding fees. Either they pay for the shredding, or I send the documents to them on their account numbers.
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Reply by PAW_Fl on 4/30/05 10:10pm
Msg #35180
I too have started charging "destruction" fees. Under the GLB Privacy Act, we may end up having to provide for "proof" of destruction back to the lender and that could get to be an administrative nightmare. If that becomes reality, I would simply return the unsigned documents to the lender/title company and let them deal with the proper destruction of the personal information as specified in GLB.
I've had a couple companies tell me to return the docs, signed or unsigned. LSI-West even states on their confirmations not to destroy or dispose of the documents
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Reply by sue on 5/3/05 6:55am
Msg #35481
once a year for the past 2 years I've had the shredding truck come by. It costs me $125 and I watch him do in minutes what it would take me days to shred (along with burning up my little shredder). I then deduct the $125 as a misc. business expense.
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Reply by PAW_Fl on 5/3/05 7:20am
Msg #35484
Another option, which I am going to use as soon as my "bin" is full, is https://www.shipnshred.com/home/index.php and you get certification for HIPAA, FACTA, GLBA and Privacy Act compliance.
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