BUSINESS telephone excise refund

[JON]

What preparer is going to get the info April and September 06 for %.. Then get the statements back to March 03 recapped to June of 06- get a $100 refund and charge the client $200. Who how are you doing it??? Business shortcut???

[jainen]

put in the dates

>>Who how are you doing it???<<

Just put in the dates and filter for the tax, then run a Quickbooks search!

[Beth]

BUSINESS telephone excise refund

I think I would give the client a choice, standard, or they chase and provide the figures for actual.

[jainen]

a business phone

>>give the client a choice, standard, or... <<

The problem is -- no such thing as "standard" for a business phone.

[Beth]

BUSINESS telephone excise refund

As I understand it, the refund on line 71 technically includes any business refund unless the client chooses to itemize monthly the expenses for both the business and the personal use. I don't think they can take the standard for themselves and then itemize the business. Thus, by standard, I meant the $30-60.

[KenB]

30-60

Jon, 99.99% of the time we will be doing the 30-60 refund automatically. Can't see spending a lot of time on getting a few dollars more. The charges for doing the extra work will = extra refund amount anyway, plus am betting very, very few of clients will have this information.

[Jiggers]

Two Phones: One Personal, One Business

What do you do now for the refund? Standard for the Personal and actual for the Business? And, how do you report?

Or do you just take the standard for the personal and forget the business because the business refund will be taxable income in 2007 on the Schedule C or F and your fee for the form will exceed the net benefits after the tax?

[Beth]

BUSINESS telephone excise refund

If you itemize for the business, you must itemize for the personal. If you play with the business worksheet, you will see that you need very large amounts of phone bills to make it wothwhile. Also, any business must have $25,000 in profit to be eligible to take the business phone credit.

[Brad Imsdahl]

Also, any business must have $25,000 in profit to be eligible to take the business phone credit.

Sorta....yes....no....

It depends on what you mean by business phone credit.

TTB, page 3-10 explains exactly what you can do if Schedule C line 7 is $25,000 or less. You are never required to take the standard amount. Everyone always has the option to take actual expenses for all phone lines. It is the alternative formula that is only available to businesses with more than $25,000.

[Beth]

BUSINESS telephone excise refund

absolutely true- but isn't also true that if you itemize business, you must itemize personal? Maybe I am missing somthing.

[Brad Imsdahl]

but isn't also true that if you itemize business, you must itemize personal?

That is true.

[JON]

Ok

Here is what I think-the easiest way is for the computation:

Total Telephone Bill (Per tax return)
2003 7,244 X 10/12 = 6012
2004 11,899 11899
2005 10,624 10624
2006 8,754 x 7/12 5077
---------
Total eligible 33612


April 2006 September 06
Total bill 1,500 1,600
Fed Excise in tot 8 2
% tax to total .00533 - .00125 = .00408(times eligible
-------------

Refund $ 137
========

It will be excel spread sheet to attach to 1120, 1120s, 1065. This is made up fast after reading IRS.

[Gretel]

And

The business phone expenses shown in QB or whereever might not be the expenses to use. It might include internet, advertising, equipment rent and so on.

I real PIA. I give my clients the choice of either finding all this info themselves or just go with standard. Of course for 1120s and the like you get nothing or maybe the business formula.

[JON]

The business phone expenses shown in QB or whereever might not be the expenses to use. It might include internet, advertising, equipment rent and so on.

I real PIA. I give my clients the choice of either finding all this info themselves or just go with standard. Of course for 1120s and the like you get nothing or maybe the business formula.

I am only talking about "business" and the amounts are a lot larger than the indidual-which I will use the standard, unless they bring other figures recapped in. Business refunds are obviously larger for most.

[sandigi]

Business Telephone Credit - Interest?

Jon, I liked your excel sheet example. That is how I also plan to do it. How do you do the interest? The interest shown in Form 8913 is not for business returns. The link on pg 4 of the instructions tells where to go at www.irs.gov, but I sure cannot find the interest factors tables for business.