- 14,809
Cancellations shouldn't be an issue with advances or as-earned. If you have clients cancelling within the 1st year there's a very drastic problem. Your cancellation rate should be near zero.
Charge Backs and Taxes
- Thread starter Golddoor
- Start date
- Thread starter
- #22
Well my first 2 years was 2 years of losses. 6 months with AFLAC and year and half with NAA. Now this being my first full year as a Ind Agent is looking a whole lot better, but the year is just starting also. Luckily my lovely Wife makes good money and has been basicly supporting me since day one with AFLAC.
- 11,280
I take advances. I don't see the tax issue. If you are still working for the company they just deduct the charge backs frm your next checks. They still paid you the money, why wouldnt you pay taxes on it? DId you pay then back outta your pocket? if so deduct it! SIMPLE
G
Guest
Guest
exactly. its only an issue if you are no longer getting paid by them.
I believe there is a way to get around paying taxes on income that will later be a charge back. You, of course, should clear this with your CPA.
If you show a history of a certain % of charge backs over x number of months, there is a legal way to deduct this estimated % as a deduction for estimated charge backs, or bad accounts.
If you back this amount up with documented history, it is legal. You simply are using an accrual or hybrid method of acknowledging your income/ expenses instead of a cash basis. The following year you must add it back to offset, or your 1099 for next year, which has deducted the charge back will be double dipping.
Linda
If you show a history of a certain % of charge backs over x number of months, there is a legal way to deduct this estimated % as a deduction for estimated charge backs, or bad accounts.
If you back this amount up with documented history, it is legal. You simply are using an accrual or hybrid method of acknowledging your income/ expenses instead of a cash basis. The following year you must add it back to offset, or your 1099 for next year, which has deducted the charge back will be double dipping.
Linda
- 11,277
10 years later and that's all you have to say about it???
AmyClarkson
New Member
- 2
I understand you. I own a small business. I have a few shops with different phone cases and protect glasses and stuff like that. I buy these from Asian countries so there are always problems with taxes. Moreover, I don't avoid it, but I don't like when the government asks more money than it actually needs. I lost quite a lot of money to pay these taxes, but then I found a platform who actually supports small business and can help you with taxes payment. They are really pros in it. Now I work with them and I don't lose this much money on taxes than I did before. Good luck!
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tikibarrister
Guru
- 472
You joined just to say that about a thread from 14 years ago?
Scott Ashton
Expert
- 77
I've read numerous posts of yours. Seems like you have assigned yourself the general know it all and believe you are something you really aren't, which is you trying to be informative. Is this why you have The Alec Baldwin pic? Wish there was something I could really learn from all of your superficial babble. My intent was for the insurance agents to be aware of this Geico problem and to take action against it...not to cry about it. Next time post something useful.
You two now have to join Fight Club.
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