How would you have handled this situation?
- Thread starter MIXMASTERMACHOM
- Start date
Are you telling me you can't walk into a room, look at the people there and within 10 seconds you don't have a good idea on what will make them happy?
I can only go by what the client said she wants. As of right now the event hasn't happened. So all anyone of us can do is go by a clients wishes unless things change at an event. She was just giving me her take on what she wanted us to play. She's footing the bill. It's up to her if she wants things to change or not. All I'm reporting is what she requested.
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I don't know if 10 seconds is fair. After a few songs when it's time to get down maybe but 10 seconds after entering a room is a bit much.
What about the times when you guess one way and it turns out to be another way. Are you able to quickly recover from that?
It doesn't apply to corporations, only poor soles -- we can take a loss every year forever. That's why folks form corporations, so they don't have to pay taxes.
You folks get to pay them though
DjDennis
RIP- My Dad (2011), Sister (2013) and Mum (2017)
You can borrow my luggable loo, since I have one of the toilets functioning at the moment. Only took me 6 months or so since my asswipe brother shut it down, and broke the main line with his fancy Jeep.
I don't think there is any rule that sets a limit but, the IRS advises that if there is no obvious depreciation involved or source of the funds you are pouring into this bottomless well you are likely to be audited within 3-5 years. A person can have more than one business and where the latter is development or research it could produce losses for many years. Most people with this problem form a corporation because not only does it contain losses and liability - it also makes it possible to acquire funding and investors in an idea.
There's not a lot of R&D needed to be a DJ. If you have another full time job, claim to be a DJ with no employees or significant depreciation and haven't figured out in two or three years how to produce a gain - I think the IRS would be pretty quick to want some answers from you!
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I don't think there is any rule that sets a limit but, the IRS advises that if there is no obvious depreciation involved or source of the funds you are pouring into this bottomless well you are likely to be audited within 3-5 years. A person can have more than one business and where the latter is development or research it could produce losses for many years. Most people with this problem form a corporation because not only does it contain losses and liability - it also makes it possible to acquire funding and investors in an idea.
There's not a lot of R&D needed to be a DJ. If you have another full time job, claim to be a DJ with no employees or significant depreciation and haven't figured out in two or three years how to produce a gain - I think the IRS would be pretty quick to want some answers from you!
I was close ... The official IRS definition of a "for profit" business ( http://www.irs.gov/uac/Is-Your-Hobby-a-For-Profit-Endeavor? ):
The IRS is dead and gone.
They had a lien on me many years ago, and they negleted to re file it. Statue ran out.
NYS seems to think I owe them money -- but the governor is my ex boss, and I'm a resident of FL.
What are the odds...?
That still leaves the door pretty wide open because if you have significant start up costs, depreciation of assets alone could generate a loss on your Schedule C that doesn't actually reflect the livable income you've taken out of the business. Certain tax credits can also put you into a refund situation that amounts to business welfare.
For tax purposes there are losses on paper and real losses of income. The IRS will put certain things back into the equation when they look at your returns to see whether or not you are really operating at a cash loss or just benefiting from temporary tax conditions.
I'd probably stay out of accounting if I were you Bob.
A corp can directly write off a quarter of a million per year, straight line -- no depreciation.
You just need to know how to work the system.
I think I'll stay right where I am thank you.
You are off by 100%
The Section 179 limits for 2012 and 2013 are a half-million ($500,000) and it is not limited to corporations.
Sole proprietors who are married adjust their limits based on filing married or jointly (it's essentially a shared/allocated limit.)
FYI: You can not use Section 179 for custom coded software purchases.
Section 179 is a bigger boon to small businesses. Large corporations benefit more from depreciation since the Section 179 expense is reduced by any capital spending that exceeds $2M. There is a "bonus" depreciation in effect (Economic Stimulus) that allows a company to accelerate their depreciation with a 50% depreciation allowance in the first year.
Why do you suppose the Bank of America and a few other major banks pay several million dollars each year to lease the Canadian subway system? They don't do anything with it, or to it - they just hold a lease on it. The reason is that the subway system is a multi-billion dollar asset that the banks depreciate to the tune of BILLIONS of dollars in tax savings. In one three-year period alone these major banks saved over $80 Billion dollars in U.S. taxes - enough to pay for the entire second appropriation for the war in Iraq.
That kind of lease deal has been banned domestically, but the loop hole for foreign lease deals remains and major corporations essentially use these lease deals to essentially grab money from the U.S. Treasury they would otherwise have paid on all their cash holdings. Imagine a struggling European city sitting on a bonded highway project worth $20 Billion - they'd love a couple million dollars a year in lease payments. In exchange for a few measly million up front the corporation gets to depreciate $20 Billion! Very sweet steal.... I mean deal.
Interesting -- I spent a few years in college studying accounting , then moved on to IT at the next college.
How about yourself -- does everything you "claim" to know come from Wiki Sh_t?
That never gets old for you does it? ...can't admit you were wrong so, go for the person.
Absolutely willing to admit when I'm wrong -- should have never gotten married to a hot chick -- should have found an ugly one.
In this case though, I can't say you know what you're talking about. Have you been schooled in accounting and tax law?
If you have another full time job, claim to be a DJ with no employees or significant depreciation and haven't figured out in two or three years how to produce a gain - I think the IRS would be pretty quick to want some answers from you!
Especially if you somehow manage to buy a bunch of new gear, while not making a profit.
Is there anything you do better than obfuscate?
They do not necessarily related in such a simple way. A capital outlay typically precedes the profit it produces. This is precisely what people do when they start-up or re-tool. The IRS rule in question applies to tax-payers using a Schedule C to off-set other income - i.e.: the part-timers claiming to be a DJ while having another full time job, or married DJs filing jointly. The IRS calls this an "income producing hobby" and if you fail to produce any income (not withstanding obvious paper losses) this is where they take you to task. So, yes - you could buy new gear, not show a profit for 3 years and be just fine.
While the Section 179 expense option is moderated (limited) by your net income - depreciation is not. If the outlay is large enough and the depreciation terms short enough - you will be showing a loss on paper that does not represent any real loss of cash. Also, under the present 2012/2013 rules (stimulus) you can take up to 50% of the depreciation in the first year!
Furthermore, if your are depreciating real property you are reducing your income on paper while the appraised value of that asset could actually be increasing. You will not have to recapture any of that depreciation until you sell the asset, and even then it is a difference formula that applies.
Factors like depreciation are taken into consideration before the IRS applies it's 3 out of 5 look back rule. They don't waste their time auditing you if what you are doing makes perfect tax sense. If on the other hand you are simply trying to "massage the system" then that is likely to reveal itself through missing and inconsistent information in your tax returns. Obviously, you have to be showing income sooner or later - but it's not all black and white. Some of the paper deductions you take are figured back in before the rule is applied.
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