Another Business Client......

[BOB W]

........ going out of business. This makes the 3rd one in two weeks. I'm sure there are more to come. Go Obama Go............

[Gary]

Resolution

The client's employer insisted that the W-2 was correct. All the employees were treated the same.

Clients wages 39000 (these are round numbers)

Box 1 has 39000

Client has pre taxed medical expenses of $4000

Box 3 and 5 show 35000

State taxable income is 35000.

Employer insists W-2 is correct.

I told the client that sometime in the future, she might hear from Social Security and Arizona.

I filed the return just as the W-2 stated, but she knows the possible consequences.

[Gary]

Don't know

I don't know how my post ended up under this thread.

Sorry

[S T]

repost

Gary,

I think we are all tired already, early in the season, but none the less.

Why don't you repost under another thread for your post, seems interesting and some might respond.

Sandy

[S T]

So far

Bob W

I sympathize with you and your business clients. So far so good here, although I have a couple of marginal business clients that might not make it due to the financial economy and their receivables.

Sandy

[Zee]

........ going out of business. This makes the 3rd one in two weeks. I'm sure there are more to come. Go Obama Go............

So, it's all Obama's fault? Or, are you hoping he can help solve the mess we were already in before he took office?

[Jesse]

So, it's all Obama's fault? Or, are you hoping he can help solve the mess we were already in before he took office?

I have to agree with Zee, Obama has been President for how long, do you really think it's all his fault?

I too sympathize with your clients but I think it's the economy in general, with the cost of gas and groceries this past year I know our family has cut back on anything that is not a necessity. We have many businesses struggling something terrible.

I do not support the bill that just passed and believe Obama needs more involvement from outside the political arena as McCain said this morning on CNN and I liked his analogy of the politicians having "incestuous relationships" - but I believe it is both the Democrats and the Republicans!

By the way Gary, I did see your post were it belonged last night. I think there was another post of yours that ended up in the wrong spot last night - I was wondering were you were comming from - but now I think it was just another mislead thread. Must be a glitch in the board.

That is the last you'll hear from me in this thread as no more time for politics - back to taxes!

[BOB W]

So, it's all Obama's fault? Or, are you hoping he can help solve the mess we were already in before he took office?

No, it wasn't a political dig. It was just that ALL our hopes are now at the feet of Obama. I was not putting him down, just a statement for him to do his best.

The main thrust of the post was that some of my small businesses were going out of business.

[BHoffman]

Some of my smaller clients are out of business, but only the ones who were heading that way eventually anyway. Young whippersnapper who went into a great deal of debt to open a very fancy office - put the cart before the horse on that one. Another kid who spent every dime on toys before paying any bills, including taxes. Another guy who could never figure out why he owed taxes because he didn't have any money after paying for stuff like his car and house payment. Another guy who never did make much money because he only worked enough to cover the monthly bills and then went fishing.

The clients who were generally successful before the downturn seem healthy today. The ones who were skating on the edge fell through. Not everyone is cut out to be self employed. In AZ, there are a lot of guys with a truck and toolbox out there trying it. Some do okay, some are better off being an employee.

I feel pretty sorry for folks who are getting laid off. I do not agree with much of the Obama plan because of its poor planning, but do agree with the part about extending unemployment benefits. Or was that part cut out in favor of preserving the harvest mouse? Not that I have anything against harvest mice. I hope they make good eating.

[geekgirldany]

Some of my smaller clients are out of business, but only the ones who were heading that way eventually anyway. Young whippersnapper who went into a great deal of debt to open a very fancy office - put the cart before the horse on that one. Another kid who spent every dime on toys before paying any bills, including taxes. Another guy who could never figure out why he owed taxes because he didn't have any money after paying for stuff like his car and house payment. Another guy who never did make much money because he only worked enough to cover the monthly bills and then went fishing.

That is what I have seen also. Alot of folk made a great deal of money during the housing boom and thought that it would continue. I had several that ran their business with credit cards. They would pay themselves before paying off the credit card bill. I would explain to them they needed to stop doing that. One gal paid the card off with a lower interest rate card only to run the old one up again. She closed her business in 2009.

I've also had several new customers starting their own business. That is good to see.

[Zee]

No, it wasn't a political dig. It was just that ALL our hopes are now at the feet of Obama. I was not putting him down, just a statement for him to do his best.

The main trust of the post was that some of my small businesses were going out of business.

Thanks for the clarification! Honestly, I'm not political at all. It's going to be a long & hard recovery for all of us (if we make it).

[David1980]

That is what I have seen also. Alot of folk made a great deal of money during the housing boom and thought that it would continue. I had several that ran their business with credit cards. They would pay themselves before paying off the credit card bill. I would explain to them they needed to stop doing that. One gal paid the card off with a lower interest rate card only to run the old one up again. She closed her business in 2009.

I've also had several new customers starting their own business. That is good to see.

The unfortunate thing about running businesses like that is she probably was able to undercut the competition on prices (because she wasn't trying to break even.) So she put businesses out of business that would have been around a long time in addition to putting her own business out of business.

It's pretty hard for people to start legitimate small businesses and plan to be around for the long-haul because they can't compete with the 3-5 year businesses with no long term plans. They simply don't have the capital to do it.

Soon, everything will be a mega-billion dollar conglomerate because they're the only ones with the funds to out-last the "sell at a loss" businesses.

[BOB W]

I estimate that my revenue will be down by 25% by the end of 2010. Even if I replace some accounts with new business startups it will not cover the dollars lost > and it will be more work for the dollar collected.

[JohnH]

I feel pretty sorry for folks who are getting laid off. I do not agree with much of the Obama plan because of its poor planning, but do agree with the part about extending unemployment benefits. Or was that part cut out in favor of preserving the harvest mouse? Not that I have anything against harvest mice. I hope they make good eating.

I never ate a harvest mice, but I had to go to court one time after a forest ranger discovered me eating a bald eagle. When the judge asked what happened, I explained that I'd been lost in the woods for days and was starving to death. Seeing a bird swoop down to catch a fish, I decided to throw a rock at the bird to scare him into dropping the fish so I could eat it. My aim wasn't very good and I accidentally hit the bird with the rock. When I got to him I was horrified to realized that he was a bald eagle. But since the bird was already dead I figured the best thing to do was to cook & eat the bird.

The judge said the story was believable and was about to let me go when he happened ask "Just out of curiosity, what does roast bald eagle taste like?". I slipped up and said "About the same as spotted owl stew." That's when he gave me 30 days.