Tax Question
 

Hey, just wondering if most people wait to receive all their checks from sponsor through this month and then come up with their final total for 04 sales? Since some don't pay out for 2 weeks afterwards? Or do you just claim income on the checks that you had received in 04?

Well first your sponsors is supposed to send you a 1099 if you earn over$600. that's the amount you are supposed to report to the IRA. if you've earn les thanthat froma sponsor youstill have to report the income. If you get your check AFTER the 1st of Jan then it counts for 2005. Doesn't matter when the check is for.

For example checks from AEBN for December aren't mailed out until Jan so they don't count for 2004. Checks from AFF from the 15th-31st of Dec are counted as 2005 income. Hope that clears it up some

yes that helps out a lot. thanks

it's not income until you cash the check or the money is in your bank account.

Please... dont speak about taxes....

very helppful thank you

Actually, it depends on several factors. The quick answer is you only count as income what you actually receive in 2004 regardless of what time frame it is for. BUT there can be exceptions depending on how your have your business set up. Many businesses work on an accrual basis rather than a cash basis. The accrual basis places income and expenses in the correct period they occurred. Cash basis is just that.. it becomes an income when you get the cash or an expense when you spend it.

As far as matching to a 1099... that will definitely keep the IRS happy. Just remember that the 1099 a company sends out will be based on the dates they issued the checks and not take into account the date you received it. For example, if someone wrote a check to you on December 30th, 2004, they would show up as 1099 applicable income for 2004. You likely won't receive the check until 2005 and by cash basis would normally count it as 2005 income. You can account for the variance by using the date of check issue to record it rather than the date of the period it's for.

The 1099 issue doesn't come into play if you are incorporated.

That BS. I file as an individual and I have to send in my 1099s that my sponsors send me.

Hello???? I said it's not an issue if you are incorporated. It is an issue if you are filing as a self-employed individual.

BTW.. you only send copies of 1099s with state income tax returns and not to the IRS. It's W-2s that you send to the IRS with you 1040.

:1orglaugh

ahh interesting. Well I do have a s-corp.

Thanks for the info PK

I do also. As an S-corp... you usually file W-9 forms as incorporated. Then affiliates don't send you 1099s.

Ok thanks for the info again. I just recently got my corp set up back in September and have got all the info changed for sponsors that I can think of. The ones that send me checks anyways.

Thanks again.

time to get ready for taxes already. *Snap*

WTF is that about asshole?

Sorry never have gotten a W-2 from a sponsor.

Oh yeah and of course you are never required to send in the info on your 1099s :eek7

From the IRS website for instuctions on schedule C

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Line 1
Enter gross receipts from your trade or business. Include amounts you received in your trade or business that were properly shown on Forms 1099-MISC. If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on line 1, attach a statement explaining the difference.

we're an llc.
we dont' have to deal with getting 1099s, just giving them if need be.
we count the money that has gone to the bank in 2004. nothing after that.