Join  |  Login  |   Cart    

Notary Rotary
which year to include $$ as income..
Notary Discussion History
 
which year to include $$ as income..
Go Back to January, 2006 Index
 
 

Posted by Anonymous on 1/3/06 7:38am
Msg #85720

which year to include $$ as income..

If I received a check today for a signing in 2005, which do I go by..

Date on check
Date on postmark
Date I receive it.

to determine if in 2005 income.

I'm thinking that I go by date on check - the company will include the $$s on my 1099.

TIA

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.

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.

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.


 
Find a Notary  Notary Supplies  Terms  Privacy Statement  Help/FAQ  About  Contact Us  Archive  NRI Insurance Services
 
Notary Rotary® is a trademark of Notary Rotary, Inc. Copyright © 2002-2013, Notary Rotary, Inc.  All rights reserved.
500 New York Ave, Des Moines, IA 50313.