topic Re: What should I charge? in Self employed

What should I charge?

TristanK — Wed, 30 Aug 2023 18:53:12 GMT

How do I know what to charge my tenant for rent or what to charge my clients so I pay the least in taxes?

Re: What should I charge?

Holly W — Wed, 30 Aug 2023 19:05:22 GMT

Thank you for joining us today in the Live event! We are so happy you are here~

I would love to answer your questions, but I will need a little more information.
When you say charge my tenant for rent, are you leasing a residential home or commercial? Either way, the IRS recommends that you charge Fair Market value in that area, or The amount of rent you charge your tenants should be a percentage of your home’s market value. Typically, the rents that landlords charge fall between 0.8% and 1.1% of the home’s value. For example, for a home valued at $250,000, a landlord could charge between $2,000 and $2,750 each month.
For the second half of the question, what to charge my clients so I pay the least in taxes?, can you please elaborate on that? What type of business, is it services or products, etc.

Re: What should I charge?

TristanK — Wed, 30 Aug 2023 19:10:35 GMT

Thank you!

It's services, medical billing and consulting for different doctors/ clinics. I also pay a subcontractor and I want to profit for the time she works. I'm not making enough money right now, and neither is my subcontractor, so I need to increase what I'm charging, but I don't want to end up paying a lot in taxes because I'm charging too much.

Re: What should I charge?

Holly W — Wed, 30 Aug 2023 19:21:26 GMT

HI @TristanK ,

Thank you for responding, while we are not able to determine that type of situation, I can offer some tools and resources.
Here is an article on How to figure out the Price of a Service. It gets pretty detailed and may offer some tips you may not have considered.

Also, if you want more personalized help, you want to contact Intuit's QuickBooks ProAdvisor or other accountants in your area, who may assist in more detail.

Good luck in your future endeavors!