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Thread: Business Owners and Lawful Money Tax Returns

  1. #51
    Quote Originally Posted by Michael Joseph View Post
    and Moses stretched out his staff before him and called on the Name of God and the waters parted and they went over on dry ground. It is a matter of Faith and Trust.

    For I go out in the ways and forage for my family in Husbandry to Assembly and then I return. For a man who will not take care of his family is worse than a heathen.

    Isa_43:26 Put me in remembrance: let us plead together: declare thou, that thou mayest be justified.

    plead = H8199
    שׁפט
    shaw-fat'
    A primitive root; to judge, that is, pronounce sentence (for or against); by implication to vindicate or punish; by extension to govern; passively to litigate (literally or figuratively): - + avenge, X that condemn, contend, defend, execute (judgment), (be a) judge (-ment), X needs, plead, reason, rule.

    ----------------------

    Consider the report at the End of the First Age and the Beginning of this Flesh Age - "Let US make man in OUR image". Is this not pleading together? Both the judge and defendant are in agreement. And what is TOTALLY amazing at least to me is that the Judge agreed to the same sentence -

    In the image of God made he Him: Yehoshuah/Jesus is the Express Image of God : male and female made he them [mankind].

    If you have seen the Son you have seen the Father. Therefore we have the appearance in this age as we did before. We remain in our image.

    What Judge executes a sentence that he himself is unwilling to follow? Therefore the Judge is not above the Law. And is not immune.

    Deu 32:31 For their rock is not as our Rock, even our enemies themselves being judges.

    A King cannot annul his word. For example see Herod [John]. There are numerous other examples - in Daniel and his three fellows.

    Those three verses - Exodus 14:19-21 are each 72 Hebrew letters in length. There arises the 72-Fold Name of God.

    The number 72 permeates reality and all life in the Fibonacci Sequence and pentagram. Primarily we think of quadrants and the solar year as 360 degrees so that when you divide that by 5 we get 72. The intersections of the pentagram are at 61.55% and that is the Fibonacci Sequence right there (1+2=3; 3+2=5; 5+3=8...).


    Regards,

    David Merrill.
    Last edited by David Merrill; 06-10-12 at 02:04 PM.

  2. #52
    Quote Originally Posted by David Merrill View Post
    Please link the Form you propose to use and we can examine that specifically.

    IRS Forms.
    http://www.irs.gov/pub/irs-pdf/f1040.pdf
    http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

    I already have 2 stamps, thanks.

    Specifically, as I mentioned using the example of gross revenue
    at 100K.

    Assuming a tax liability of say 20K. (These were revenue that I was unable to
    get my RE on, electronic transfers, direct deposits, etc)

    All other monies were lawful money redeemed (80K) via RE (restricted endorsement)

    My cost of doing business was 30K. (Space rent, utilities, advertising, etc.)

    On the 1040

    Line 12 - (-10K)

    Line 22 - (-10K)

    line 37 - (-10K)

    Line 38- (-10K)

    Line 40 - (11.6K) Standard Deduction

    Line 41 - (-21.6K)

    Line 42 - (22.2K) 6 Dependents

    Schedule C:

    Line 1b - (20K)

    Line 1d - (20K)

    Line 3 - (20K)

    Line 5 - (20K)

    Line 7 - (20K)

    Lines 8 - 27 Business operating costs - (30K)

    Line 28 - (30K)

    Line 29 - (-10K)

    Line 31 - (-10K)

    Now here's the kicker. If you claim a loss for more than 3
    years the IRS will consider your business a business no longer,
    it a hobby.

    So this is how redeeming lawful money looks on the actual tax return of
    a Sole Proprietor.

    The above is of course simplified. On top of that there are 1099K and 1099MISC
    which are declared by PayPal and merchant accounts if you plan to actually be
    solvent and take credit cards.

    So in 2012 the IRS will also get a 1099K from my merchant processors showing
    that remaining 80K, which is unaddressed at all in the above return.

    Then, there is the local borough sales tax quarterly, which they expect to match
    your fed return.

    So if anyone can contribute to help make this process better I'd greatly appreciate it.

  3. #53
    Sorry for my absence on this thread. Tax time is always very demanding, business and family-wise.

  4. #54
    Given the hypothetical scenario you presented there appears to be several options to reconcile the accounting records of the business to the accounting records provided to the IRS.

    The first would be to show the total gross receipts on Sch C line 1b. Then show a reduction in the amount of lawful money which was demanded on Sch C line 2 which includes 'any other adjustments.' There is a note in parentheses on that line to 'see instructions' but I have not been able to locate specific instructions for that line in the instructions. This option should allow the local borough to match/reconcile figures easier than the following option.

    For the second option, the specific instructions on page C-4 in regard to Line 1b it states: 'If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on this line, attach a statement explaining the difference.' Therefore you could attach a short statement. However, this option would be more burdensome for the local borough to match figures. However, the local borough would be showing more receipts on their records vs the Sch C so they would be less likely to make a fuss compared to the opposite situation in which their receipts would be less than the Sch C.

    Quote Originally Posted by Axe View Post
    Now here's the kicker. If you claim a loss for more than 3 years the IRS will consider your business a business no longer, it a hobby.
    The IRS is supposed to follow this when dealing with a potential hobby loss. But if a demand is made for lawful money should one worry about or even consider what a subject under the Internal Revenue Code has to deal with?
    Last edited by karl nathan; 07-10-12 at 09:35 PM.

  5. #55
    Thanks for that Karl.

    So Sch C line 2 you would put the total amount of Lawful Money redeemed, and
    annotate it how? Write it in on the line? USC 12 ss411?

  6. #56
    I also found this today:

    http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

    "use Form W-8BEN if they are claiming treaty benefits or are providing the form only to
    claim they are a foreign person exempt from backup withholding."

    This is the form you are supposed to file to PayPal if you are "foreign" and don't
    provide your SSN. PP requires a foreign address verification.

    From part 4:

    Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I
    further certify under penalties of perjury that:
    1 I am the beneficial owner (or am authorized to sign for the beneficial owner) of all the income to which this form relates,
    2 The beneficial owner is not a U.S. person,
    3 The income to which this form relates is (a) not effectively connected with the conduct of a trade or business in the United States, (b) effectively connected but is
    not subject to tax under an income tax treaty, or (c) the partner’s share of a partnership’s effectively connected income, and
    4 For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.

    Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner or
    any withholding agent that can disburse or make payments of the income of which I am the beneficial owner.
    Last edited by Axe; 07-12-12 at 12:07 AM.

  7. #57
    I wonder how specifying Colorado Republic would go over?

  8. #58

  9. #59
    Given the hypothetical scenario you presented there appears to be several options to reconcile the accounting records of the business to the accounting records provided to the IRS.

    The first would be to show the total gross receipts on Sch C line 1b. Then show a reduction in the amount of lawful money which was demanded on Sch C line 2 which includes 'any other adjustments.' There is a note in parentheses on that line to 'see instructions' but I have not been able to locate specific instructions for that line in the instructions. This option should allow the local borough to match/reconcile figures easier than the following option.

    For the second option, the specific instructions on page C-4 in regard to Line 1b it states: 'If the total amounts that were reported in box 7 of Forms 1099-MISC are more than the total you are reporting on this line, attach a statement explaining the difference.' Therefore you could attach a short statement. However, this option would be more burdensome for the local borough to match figures. However, the local borough would be showing more receipts on their records vs the Sch C so they would be less likely to make a fuss compared to the opposite situation in which their receipts would be less than the Sch C.

    The IRS is supposed to follow this when dealing with a potential hobby loss. But if a demand is made for lawful money should one worry about or even consider what a subject under the Internal Revenue Code has to deal with?
    Any thoughts on the best way to sign the return?

    True Name for LEGAL NAME, LEGAL NAME only, etc.

    Thanks.

  10. #60
    Nobody? It's easy to say True Name but you are contracting therefore placing yourself under jurisdiction.

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