logo

Ways Through the Maze: A Tax & Money Guide for Indies

#36 Back On Track
December  2011

Hi Indies,

 

It's holiday time and I know you are all very busy so I will keep this short. Want to let you know I'm back and I am very glad to be back.

 

I am sorry for my long absence which was unavoidable, unprecedented, and unique - unique in the sense that it won't ever happen again. Here's what I said about it on my blog.

 

Thank you all for hanging in there with me. You've been emailing and telling me how helpful my material is. My goal: To make a lot more info more easily available to you.

 

Check out  the December 31 Rule below to take advantage of an often-missed deduction.

 

Also want to let you know that my website has been revised, redecorated and renewed and it's home for my blog. Please take a look in your spare time. Just kidding ... I know you have no spare time. Take a look when you need tax info. Shortly after the new year I will be getting back in touch with you with information on my revised publication, Five Easy Steps.

 

Have a wonderful holiday. I hope to help make 2012 a bit easier for you by providing useful, stress-less information.

 

Cheers,

June

 

june@junewalkeronline.com

 
June Walker
Consultant To Indies 

 June Walker -- photo by Chip Simons

 

 June's Website

Learn More
June's Book
Self-employed Tax Solutions 
Be A Confident Indie
Five Easy STeps cvr
75 page downloadable PDF
Available Soon!
 
Includes Worksheets for
your 2011 Tax Return

The December 31 Rule
Buy now. Pay Later. Deduct now. 

The following excerpt from my publication, Five Easy Steps, may help you with some last minute tax deductions.

  

For Credit Cards:

Every item charged to your bank credit card on or before December 31 is an expense for that year, even if the credit card bill isn't paid until the following year. The exception to that rule - yes, here's another exception -- is for store credit cards. An item purchased using a store credit card cannot be deducted as a business expense if it has not been paid for by year-end. Here's why:

 

If you purchase a computer from OfficeArsenal On December 31, 2011 and charge it to your BigBank VISA, BigBank pays OfficeArsenal. You do not owe OfficeArsenal for the computer, you owe BigBank. You've paid for your computer with the bank's money; it's the bank you haven't paid. Same as if you'd borrowed the money from Momma and plan to pay her back as soon as your client pays you.

 

However, if you charged that computer to your OfficeArsenal credit card you could deduct only the amount of money that you had actually paid OfficeArsenal. You did not yet pay for your computer because OfficeArsenal had not yet received its money. If you failed to pay the balance owed then OfficeArsenal could repossess your computer. 

 

For Checks:

An invoice or bill that you paid by check dated December 31,2011 or earlier, regardless of when it clears your account, is considered paid in 2011. If it's a business expense it should be deducted on your 2011 tax return and put away with your 2011 records.

 

 

Shortly after the New Year I will send you more info on The Confident Indie Keeps Awesome Records: Five Easy Steps.

Helpful Info
Lots of you have emailed asking about the difference between Five Easy Steps and Self-employed Tax Solutions.

So, this to help you out:
If you are new to self-employment or have never had taxes, expenses, and basic indie business structure explained to you simply and clearly then you need Self-employed Tax Solutions. It provides you with a solid foundation on which to build more knowledge.

If you have a pretty good understanding of indie taxes but recordkeeping is driving you crazy then you need Five easy Steps. It complements Solutions.

Ways Through the Maze

Will bring you clear and simple solutions to complicated situations about
income
expenses
taxes
recordkeeping
indie pensions
beiing self-employed
What's an Indie?

Whether you call yourself a
1099 Worker
 
Sole Proprietor
 
Freelancer
 
Subcontractor
 
Free Agent
 
or
 
Self-employed


  
The IRS classifies you as an
independent contractor.
 
I call you an indie.

You are an
independent professional.
If you'd like to receive Ways Through the Maze
Join The Mailing List