as non-incidental materials and supplies (this is not new and is described below…hint: it doesn't do you much good) *OR*.In a nutshell, the TCJA says that small business taxpayers (basically any business with sales under $25 million) can account for inventory for tax purposes either: If you were below that threshold, you could use the cash method of accounting for everything except your inventory. Historically, the guidance indicated that if your business had inventory, you were required to use the accrual method of accounting (explained below) for tax purposes unless your gross receipts (essentially your sales) were below a certain level.
#WHEN CAN I BUY TURBOTAX 2016 FREE#
My updated answer about immediately deducting inventory is now “maybe, it depends.”īy the way, if you need a simple way to track your inventory and cost of goods sold, check out my free inventory tracking spreadsheets: Some are saying that they are shutting down the cash-basis inventory party we had been enjoying during 2018-2020 (deducting inventory when purchased), but I'm not so sure about that. However, more recently in January 2021 the IRS issued final regulations to answer questions raised by the TCJA. That being the case, I changed my answer about whether or not you could deduct inventory when purchased to a solid “it sure looks that way.” Not everyone is interested in a technical explanation, so before I dive into the detail, I'll get right to it:īefore 2018, to the question of “can I deduct my inventory when I purchase it,” I would have answered with a solid “no.”īut the Tax Cuts and Jobs Act (TCJA) of 2017 changed all that. I’ve also frequented forums on eBay, Amazon, and Etsy to read the back-and-forth among fellow sellers trying to educate each other with sometimes misguided advice. I get these questions often from resellers. What is cost of goods sold? How do I calculate it?
#WHEN CAN I BUY TURBOTAX 2016 HOW TO#
If you filed an extension and owe additional taxes, this is your deadline to file your completed return and pay any remaining taxes owed.īill Hendricks is the CEO and co-founder of Common Form, which helps people with simple finances file taxes in 5 minutes from their phone or computer.One of the most misunderstood accounting concepts in the ecommerce and reselling space involves how to deduct your inventory costs. And if you’re due a refund, you’re extending the interest free loan you’ve given Uncle Sam. If you want to, you could file an extension.īut extensions are fool’s gold – you still have to pay at least 90% of taxes owed. If you owe the IRS additional taxes, you must file and pay them by this date to avoid fees and penalties. It’s actually a payment deadline rather than a filing deadline. Most people believe “tax day” is the deadline to file your income taxes. However April 16 falls on a Saturday in 2016, so Emancipation Day will be celebrated on Friday April 15, and Tax Day will be pushed back to Monday April 18. Emancipation Day is typically celebrated on April 16. This is a federal holiday, so the IRS will be closed. Washington will celebrate Emancipation Day on April 15. You can thank Washington, D.C., for the extra time. Yes, you read that right, it’s April 18th in 2016 instead of April 15th. If you made less than $10, use your bank statements or online banking to determine the amount of interest you made. Note that banks are only required to issue a 1099-INT if you made at least $10 of interest during the year, however you are still required to report it even if they don’t send you one.
If you received unemployment income, this is also the deadline for the state(s) to provide you with a 1099-G.įinally, this is deadline for banks to supply you with a 1099-INT reporting bank account interest you made.
Many employers offer electronic versions via the same website you can view your pay checks. Note this is a mailing deadline, not a receipt deadline, so if your company is slacking, it may take a few extra days to get it via snail mail.
FEBRUARY 1, 2016ĭeadline for your employer to mail you your 2015 W-2. If you file your taxes with us before this date, we’ll transmit your return as soon as IRS is ready to process it. IRS e-file goes live and begins processing returns. TaxAct opened its virtual doors and started preparing 2015 tax returns. For more important tax dates and deadlines, read on. The short answer is – now! File your taxes today. In 2016 you will be filing your 2015 taxes, settling up with Uncle Sam on the income you made in 2015. Great question! But what you really meant to ask is – when can I file my 2015 taxes?
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