Reply by KBLedgard_CA on 1/3/06 8:34am Msg #85726
It would depend on which accounting method you are going to use. This was recently discussed this on thread #84684. Take a look at that and see if that helps. Otherwise, email me if you like. I've done taxes for my family every year for the last 10+ years. However, I am not a licensed CPA. Hope this helps.
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Reply by PAW_Fl on 1/3/06 9:34am Msg #85736
Family taxes are one thing. Business taxes are altogether different, unless your family had their own business.
But, you're right in that is depends on the accounting method used. In simple terms:
Cash accounting - Count the money when you **receive** it. Accrual accounting - Count the money when you **bill or invoice** it.
Basically, with accrual accounting, income is generated when you perform you job. However, there are some drawbacks and advantages to using the accrual method that you would need to talk over with a tax professional. With cash accounting, which most notaries use, just count the money when you get in your hands.
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Reply by KBLedgard_CA on 1/3/06 7:40pm Msg #85825
Fortunately and unfortunately, I do have 2 family members who do own their own business and a 3rd worked from home and had a deduction for "home office." But your right, there is a big difference between business taxes and personal taxes.
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