I own a small business that uses a cost method to value inventory. On around October 20th, 2020 I took delivery of an item that I sold shortly thereafter. I paid for this item with a 30% deposit and mailed the remaining balance on November 23, 2020 (for which I have a check # and payment voucher). On January 18, 2021, the vendor from whom I had purchased the item notified me that 70% balance payment had not been received. I immediately stopped payment on the check and wired the full amount owed. Considering the circumstances, can I expense the 70% balance payment in the 2020 tax year? ... View more

I own a small business that uses a cost method to value inventory. On around October 20th, 2020 I took delivery of an item that I sold shortly thereafter. I paid for this item with a 30% deposit and mailed the remaining balance on November 23, 2020 (for which I have a check ... View more

I own a sole proprietor LLC which I run out of a rented apartment in California. I am a nation-wide broker, conducting 100% of my business over the phone and/or internet. For the year 2020, I have spent 50 weeks in Colorado tending to a Covid related family matter. During that time, I have paid rent on an empty apartment in California. In years past, I have claimed 30% of my rent as a business deduction, based on the square footage of the apartment used to conduct business. For the year 2020, I have used 0% of the apartment as my “residence” as I have not been there. I have also used 0% of the apartment to conduct business however I am using the address of my apartment as a place where I registered my business. I paid the California LLC fee as well as state and local business tax for my business whose address is my apartment. I also receive business mail at this “apartment” address. Based on the fact that for the year 2020, I use 0% of the apartment as a residence but am rather using it 100% as the registered address for my business, can I claim 100% of my rent as a business expense? ... View more

I am over 50 years of age and am using Turbo Tax for Home and Small Business 2018 and am working on my SELF-EMPLOYED RETIREMENT PLAN. In my case, I have earned enough money to enable me to make contributions to my: INDIVIDUAL 401K ELECTIVE DEFERALS CATCH-UP CONTRIBUTIONS EMPLOYER MATCHING (Profit Sharing) CONTRIBUTUIONS. I have chosen to check the box to have Turbo Tax MAXIMIXE MY CONTRIBUTIONS TO INDIVUDUAL 401(k). Turbo Tax, in turn. tells me my maximin allowable contribution to my 410(k) plan which is $24,500 and then on the summary screen tells me the amount that it has ALREADY CONTRIBUTED TO ALLOWABLE PLANS. I’m assuming that if I subtract the $24,500 from the Maximum that Turbo Tax has contributed to allowable plans, that I arrive at the amount of money contributed by my EMPLOYER MACHTING (Profit Sharing) CONTRIBUTIONS. If this is assumption is  correct, where in Turbo Tax can I check to confirm the actual amount the Turbo Tax has allocated to my Employer Matching Contributions? Also, by what date does my employer (which is me) have to make that contribution? By what date do I have to make the $24,500 contribution to my Individual 401K? ... View more

This is the Second Time I have posted this question. Please answer the questions at the end of this post in which I ask where in Turbo Tax should I enter specific information. I am using Turbo Tax for Home and Small Business and am working on my SELF-EMPLOYED RETIREMENT PLAN. On the screen in which I enter my 2018 CONTRIBUTIONS, I have checked the box to have Turbo Tax MAXIMIZE MY CONTRIBUTIONS TO INDIVIDUAL IRA. Turbo Tax calculated this number to be $38,936. In a previous TURBOTAX ANSWER EXCHAGE it was explained to me that $24,500 of that $38,936 is an ELECTIVE DEFERRAL and that the remaining $14,436 is the EMPLOYER CONTRIBUTION. Am I correct in assuming that the $14,436 is entered on the same screen as above, in the box associated with the heading EMPLOYER MATCHING (Profit Sharing) CONTRIBUTION? Also, at the and of the interview for this section, Turbo Tax asks me the following: Enter the amount of $38.396 Keogh, SEP, Simple or 401 (k) plan contribution deduction attributable to [MY COMAPNY NAME}. Should the amount for the preceding be the $14,436 Employer Contribution? ... View more

I am the sole proprietor of a small business. I am using Turbo Tax for Home & Small Business, entering information in the SELF-EMPLOYED RETIREMENT PLAN section. When it asks DID YOU CONTRIBUTE TO AN INDIVIDUAL OR ROTH 401 (k) PLAN, I say YES. When asked for my 2018 CONTRIBUTION to these plans,  I check the box to MAXIMIZE MY CONTRIBUTION to a 401K. Turbo Tax tells me that my MAXIMUM 410K CONTRIBUTION is $24,500. When asked if I contributed to a Keogh, SEP or Simple Plan, I say NO. When I get to my Retirement Contributions page is says that my MAXIMUM ALLOWED TO QUALIFIED PLANS is $38,973. How did I get from $24,500 to $38,973? The difference is $14,473. Where do I contribute this amount of $14,473? ... View more