I own a business and it worked out in a weird way. There was a building that was vandalized and old in my town. I made a offer to the owner to fix it up and conduct my business there on a 3 yr lease if they pay materials and labor. I got paid $7500 and materials were about $3000, it consisted of every odd job imaginable. I run the place myself and make $8000-10000 a month with expenses the following:
Initial start up materials $12000 Deposit $2000 Rent $1500 Utility $300 Supplies $500
I have prepaid $8000 and $4000 in federal and state just to be safe . Am I good for the year? I will be open exactly 6months by the end of the year and will gross $55,000.
How do I pay on the initial payment from my landlord to fix up the place; $4500 was paid for my labor and willingness to get it cleaned up.
My only other income is from a rental I own outright and net $25,000 a year on. I can diminish value the property $10,000 a year.
Thank you!!
Im sure there’s someone in your town or nearby. And most conversations can happen over the phone and email. I only talk to my CPA 4 times a year now, and only see the office staff once a year. So just find one.
A lot can be learned from reading, but CPA’s can help you avoid the big mistakes.
Based on the OP, I think you’ll be ok based on the amount you prepaid. But reddit is just not the place.