Where does the money come from on a business write off..is it from profit?
81472
A business write-off describes expenses to run the business, for instance, in my business I use a cell phone.  I write off the total costs of the cell phone and the service fees.  Basically, the write off is the amount it cost me to earn money.. I take the money I earn, minus my expenses, to determine profit (or loss).  I pay taxes on the profit only (after all expenses have been subtracted.)  I hope this helps you.  So, a write-off is money you did not earn, but paid out instead.
149317
There really are no calculations because they are not charging you ANY interest at all (probably for a certain amount of time only, right?) You will only be paying the Principle during that time, which means you are making a payment that actually reduces the total cost by the exact amount you pay.  WHen interest begins accruing, then each payment you make will be partially going to the product cost (prinicple) and partially to the interest cost (the creditor's profit for lending the money).  There is no better interest rate than 0%.  So, good going!
308898
Well whatever you do, don't ask an accountant.  Ask a financial advisor.\n\nBut in general, the selling price of a business is usually based on the amount of income or cashflow it generates.  A buyer will typically pay a multiple of that amount.  Whether that multiple is 5, 10 or 20 times depends a bit on what kind of business it is.  \n\nIf it's a great business with high profit margins and is growing at a fast pace and you're selling a product or service that's in high demand, a buyer may pay 20 times your earnings or cashflow.  (Ex., if it generates $100,000 per year in net income, the buyer may pay $2 million for it)\n\nIf it's a much slower growing business or is in any financial distress or is not as attractive, than the multiple will obviously be a lot less.\n\nThese multiples may be somewhat arbitrary, but keep this in mind:  Buying a business is like any other investment.  The buyer needs to earn an adequate return on that investment (with adequate being a different measure for different people).  If I require at least a 10% return per year on my investments, than I may not pay more than $1 million for your business that generates $100,000 in income.  And if there's risk that your business may not last more than a few years, than I certainly will not want to pay you more than the total cummulative amount of income it will generate over its remaining life.  So if your $100,000 annual income business will only be around for another 5 years, than I certainly won't pay more than $500,000 for it (although it will probably be much less than $500,000 after I adjust for the time value of money).\n\nAll of these factors combined are what go into this decision.  Again, it's all a bit arbitrary and there's no exact science for it, but hopefully this will at least serve as a guide.
272986
Most write offs come off you taxable income. There are a few deductions that can come off your tax(IRA contribution)
22102
Well you'll have to do the math.  If you purchase you can depreciate the asset.  If you lease you will save $ up front and can use the money you saved to invest in your business.
40209
Depends on what you mean.\n\nMany companies using clearing or payroll accounts setup specifically for this purpose. Generally, they don't have money in them until the very last minute that it is needed.  For example, if I send out 1000 payroll checks, history might tell me that 75% get cashed in two days, 10% more the 3rd day, and the remaining 15% over the next four days.  I am going to fund that payroll account the amounts that I think are needed for that day, and keep the rest invested until later.  If the account is overdrawn, the company gets charged something.  Companies that are this savvy about their cashflow, usually have agreements in place with their bank that allow them to overdraft the account and be charged daily interest until they put the funds in to covered the cleared checks.  So, if you are working for a company that might fall into this category, this could be a possibility.\n\nThe other possibility is that the company just doesn't have the money to make payroll.  If you think this is the case, contact your state's employement security office immediately and file a claim for uncompensated work.
914491
If I understand this question, you, the company, is paying the creditor the money.  In this case, it would be a decrease to Cash (the asset) listed as a credit, and a decrease to a liability, such as accounts payable, listed as a debit.  In other words, these would the the journal entries:\n                           Debit                Credit\nCash                  1800\n      Accounts Payable                 1800
246283
depends on your business how many lines but its basicly ..\nA gross sales\nB taxes\nC payouts\nD net sales. a-b-c=d\nyou can do the same thing with laber cost , prouduct costs, waste it all depends on the type of business
261749
If you have your own business or if you have a home office and it is for the convenience of your employer than you can deduct the portion that is used for business or work. The first person was right if you want to start one you can for next year. You just need to be sure that what ever part you deduct you can prove it is used for only business.
401868
We, as you and somebody else... Let that be the first RED FLAG... Not only do you not have the positive cash flow yourselves but you dont even know anybody to ask... This is getting off to rough start... I'm not being negative, just real... Restaurant and bar biz is no joke when it comes to trying to make a buck... Especially when you have to pay back most of what you make in the beginning... Think about it... Good luck!
812345
I'm just going off the top of my head here without looking anything up, so just use my answer as a guide and not fact.  (Because staring at the code is factual, but sometimes doesn't get you very far in thought.)\n\nThe rental property.  Chop this up into three components - land, building and personal property.\n\nLand, as you know, is not depreciable.  But it should be listed as a separate component of the sale.  \nThe building is depreciable, but will also be under an additional code section, 1250.\n\nThe general rule starts with section 1231 property.  Then, depending on what it is, it might ALSO be 1245 property or 1250 property.  But just to keep things simple, think 1245 = equipment and 1250=buildings.\n\nBoth 1245 and 1250 pretty much say this: When you sell the asset, the amount over adjusted basis, up to the extent of depreciation taken, is ordinary gain.\n\nFor example.  I bought a piece of equipment a few years back for 10,000.  Tuesday, when I sold it, it had a tax adjusted basis of 1,000 (10,000 historical value less 9,000 of accumulated tax depreciation taken).  I collected 5,000.  In this case, ALL of my 4,000 gain (5,000 sales price less 1,000 adjusted basis) will be ordinary income.  \nLet's say I sold it for 12,000.  9,000 of my gain would be ordinary and 3,000 capital gains.  \nNow I'm babbling.  But in a nutshell, you are recapturing the depreciation expense at ordinary, just like you took the expense (over time).\n1250 for buildings has something similar, but not many have that issue anymore (unless they were purchased over a decade ago or so).  There is some special additional tax on the gain or special rate.\nBut the losses are ordinary, thankfully.\nAnd I feel like I'm getting off track here, but I'm trying.  :)\n\nBut onto the land.  It depends.  And perhaps this is where saying more info is needed might help.\nIf this is a separate piece of land accounted for seperately and Mary can prove that she wasn't going to improve anything, then there might be support for the claim that it is a capital asset and the gains are capital.\nHowever, that would be really agressive to me considering it saysing "holding for future development" and if there has been anything substantial done to the property.\nIn short, you will want to check out code section 1237 for reference too although it doesn't exactly fit your problem.\n\nAnd last but not least, I'll clog this answer with an Explanation nabbed from my own stuff.  Good luck on your research and forgive me for such a lengthy answer.  Usually I hate stuffed answers.  Cheers!\n\nReal property produces capital gain or loss on its sale or exchange if it's a capital asset. The main reasons for the exclusion of real property from the capital asset category are (1) that it's property held by the taxpayer primarily for sale to customers in the ordinary course of his business, and (2) that it's real property used in his business. Code Sec. 1221(a)(1) , Code Sec. 1221(a)(2) . However, the sale or exchange of real property used in a business (including rental realty), or the involuntary conversion of such property or real property that is a capital asset, can produce a Code Sec. 1231 gain or loss. \n\nThe fact that real property is held primarily for sale to customers in the ordinary course of a taxpayer's business precludes it from being either a capital asset or a Code Sec. 1231 asset (business-use property). Code Sec. 1221(a)(1) ; Code Sec. 1231(b)(1)(B) . The factual question of whether real property was so held gave rise to intensive litigation. Cases decided under Code Sec. 1231 are covered as part of the question of what property is used in a business. Decisions delineating property that is a capital asset are covered in this subdivision. The special rules of Code Sec. 1237 , allow taxpayers other than C corporations to obtain limited capital gain as to property subdivided for sale under certain circumstance
356977
When it comes to tax deductions and expense write offs, the best thing you can do for yourself is to consult with a certified and experienced tax professional.\n\nThe legal form of your business is a major factor in how you pay texes, sloe proprietor, limited partnership, corporation?  If you are not sure ask an attorney.\n\nThere is nearly no limit as to what you can purchase and use for a business.  What you can write off however is a different story.  When you make purchases with the sole intention of business use, you should consider the depreciation of the asset,(thing you own are considered assets).  To estimate the depreciation value of an asset, try deviding the cost of the item by the number of years you expect to retain the asset in service, the resullting number is the amount of money you can deduct from your taxes each year untill the asset no longer serves your needs.  Another option is to write off the entire depreciation in the first year of ownership.  Though this may decrease your tax liability dramitically for that year, there will be no other tax benefits to the ownership of that asset.\n\nYou can also deduct the cost of operation such as rents, mortgages, utilities, insurance, interest paid on loans (real estate), vehicles and the cost of operation of the vehicle, advertising, accounting, legal fees.  Pretty much any expense that you incur for the business, and certain things that you share, such as a residence, or a car can be used as deductions at tax time.  Be careful not to double deduct items.  If you cliam your car as a business expense, don't claim the interest you pay on the loan in your personal taxes.\nThere are also limits to which you can make deductions; remember you don't want to run in the red with your taxes for more than a couple of years, as the IRS will closely scrutinize your tax returns and records.\nHope this helps.\nGood luck
1136609
There is a huge difference between  bankers and venture capitalists. And I'm not just referring to the cost of borrowing so tread cautiously here.\n\nBefore I can provide you with advice I need a little more information. How long have you been in business?  About how many people work there?  Why do you need the money?\n\nJust a quick note " fund some of our operations " might suggest you need money just to keep the business open. If this is not the case it may be better to delete this part of your question.
850163
Determine what % of the time you will use the computer for business.  That is the % you can write off your taxes.  Of course that % is open to interpretation by you so be generous with yourself.
395437
You will determine your net asset value, which would be your share of the assests minus your share of the liabilities. Which would be your physical assests, your accounts receivables, you account payables etc.\n\nTo this you will add intandibles such as good will. Your periodic sales or profit figure should help you estimate this number. It make also depend upon how desperate the  buyers is to buy ur business.\n\nHope this helps
34483
You will need to show receipts of the revenue that your business generated. You should have statements from the individuals and companies that gave you the money.
1156673
First, any profit that your sole proprietorship makes is taxable in the year that it is earned.  This is true whether you pull it out of the business for use or not.  Second, you do have to make quarterly payments for your estimated tax liability to the IRS & possibly the state- some states don't have income taxes.\n\nMy mom has been a sole proprietor for decades and she has always done this.\n\nI don't know what the "business office" is, but it sounds like you need a tax accountant.