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S-Corp and Day care
Taxes, I HATE taxes. I know children not tax accounting.
I have always hired a professional and he recommended to me years ago that I open a S-Corporation, which is what I did. Until I started reading on here about Day Care being a specialized field and until I started reading Tom Copeland's blogs and posts I did not have a clue what a mistake I had made.
For 2011 I found what I thought was a day care specialist in tax prep. That is all she does. She did not have a clue what so ever with what to do with doing my S-corp so she passed me to someone that only does corporation tax prep and this person was supposed to close my S-corp and then file our personal as a schedule-C. I filed for an extension to have enough time to get all of this done and dissolved the corporation myself as of August 2012. Done. Finished. Now I can start claiming ALL of my deductions and feel better about my taxes. Uhhhh....NO.
This year I found some one that has been doing taxes for day care over 20 years. The gal from last year that I thought would work and that had passed me off to the corporation acct. didn't return my call so I used Tom Copeland's Tax preparer search and finally found what I think is a real powerhouse. She took a look at my taxes and wouldn't accept the liability of doing them.
She said that the S-corp taxes weren't closed properly and that the final return must still be done. That is why I thought I hired the lady last year. =( She could not do this because the original guy had not given enough information to continue depreciating my home and other depreciables. I have not been paying self employment taxes and social security taxes. He also had shown a huge profit each year and as a day care he was not claiming enough of the deductions(this is what I thought and why I tried to change).
Today I have to go back into original guy(a tad bit uncomfortable here) to have him finalize the corp taxes and to get from him a list of my depreciables so that she can do my personal taxes and claim my deductions properly.
Wish me luck. I hope I don't have any other problems that I don't know about. Ignorance is not bliss. I wish I understood this better.
I have always hired a professional and he recommended to me years ago that I open a S-Corporation, which is what I did. Until I started reading on here about Day Care being a specialized field and until I started reading Tom Copeland's blogs and posts I did not have a clue what a mistake I had made.
For 2011 I found what I thought was a day care specialist in tax prep. That is all she does. She did not have a clue what so ever with what to do with doing my S-corp so she passed me to someone that only does corporation tax prep and this person was supposed to close my S-corp and then file our personal as a schedule-C. I filed for an extension to have enough time to get all of this done and dissolved the corporation myself as of August 2012. Done. Finished. Now I can start claiming ALL of my deductions and feel better about my taxes. Uhhhh....NO.
This year I found some one that has been doing taxes for day care over 20 years. The gal from last year that I thought would work and that had passed me off to the corporation acct. didn't return my call so I used Tom Copeland's Tax preparer search and finally found what I think is a real powerhouse. She took a look at my taxes and wouldn't accept the liability of doing them.
She said that the S-corp taxes weren't closed properly and that the final return must still be done. That is why I thought I hired the lady last year. =( She could not do this because the original guy had not given enough information to continue depreciating my home and other depreciables. I have not been paying self employment taxes and social security taxes. He also had shown a huge profit each year and as a day care he was not claiming enough of the deductions(this is what I thought and why I tried to change).
Today I have to go back into original guy(a tad bit uncomfortable here) to have him finalize the corp taxes and to get from him a list of my depreciables so that she can do my personal taxes and claim my deductions properly.
Wish me luck. I hope I don't have any other problems that I don't know about. Ignorance is not bliss. I wish I understood this better.
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