Could some of you please e-mail me and let me how I classify wholesale parts cost seperate from my income? I'd rather not pay taxes on parts that I purchased for customers. After thinking about your question, I need to ask you, what taxes are your referring to? If it's the sales tax that you collected from the customer, what you collected, you pay to the state. You're not really paying anything. You're just the middle man for collecting taxes. In Missouri the state allowed you to deduct 1% of what your collected, to pay you for the trouble of collecting the tax. If it's income and SS tax you're talking about, the parts are taken right off the top of your income. If you brought in, lets say, $50,000, last year, and you bought $1000 worth of parts, then you are taxed on $49,000. Other business related expenses are also taken right off the top. That is why you need to keep record of what your business expenses are. Wim -----Original Message----- From: Matthew Todd <toddpianoworks at att.net> To: pianotech <pianotech at ptg.org> Sent: Thu, Feb 24, 2011 3:49 am Subject: [pianotech] Quick Quickbooks Question Does anyone else here use quickbooks for their financials? Could some of you please e-mail me and let me how I classify wholesale parts cost seperate from my income? I'd rather not pay taxes on parts that I purchased for customers. Thanks! TODD PIANO WORKS Matthew Todd, Piano Technician (979) 248-9578 http://www.toddpianoworks.com -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://ptg.org/pipermail/pianotech.php/attachments/20110224/1b020dba/attachment.htm>
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