Started a Surveying PLLC in NC late last year with a sum of money that was gifted to me. I've already done my personal taxes. In attempting to do business taxes I realized that the money I received to purchase equipment and software was a gift to me and not the business. Do I go back and make an amendment to show that amount as a gift to me on my personal taxes? Also, no substantial work was done last year (literally a $100 or less) because I was starting up and organizing and it was at the end of the year. So do I need to file business taxes?
This is all new to me so any advice is welcomed.
For gifts under $15,000 from an individual, $30,000 from a couple there are no taxes, if over the giftee pays the taxes, I've never understood that but I believe that's how it works. You should not need to do anything if the gift is under those amounts, if it was over,,,,,,consult an account. There are ways around paying gift taxes by counting it against a lifetime exclusion. At this late date you need to hurry up and figure it out, you don't want to pin a tax on a giver when a little paperwork can save them from that.
More had it right with one exception. He used the word giftee, which is you. The person(s) who give are responsible for the tax, if any, and unless an arrangement was made for the recipient to pay.
Any business needs an accountant to, at a minimum, set up how accounts will be kept and taxes dealt with. If that turns out to be something you can handle ongoing you might not need them later, but I think most business owners keep an accountant so they can concentrate on making the venture go, instead of having to keep track of all the tax changes.
I just, this morning, authorized a digital transfer of the biggest pile of money I’ve ever waved goodbye to. Guess who got it...
2018 was a really good year. So good i think I’m gonna need somebody to buy the next round or two, till some more receivables roll in.
Assuming you set it up for tax purposes as a sole proprietor, then you need to use schedule c in your personal taxes. But i would wait till next year because your equipment apparently wasn't put into use until this year. If you say it was put into use last year then you'll have to depreciate, but if things go well this year you might want to expense it. Not an accountant, just thinking out loud. There's federal requirements and then state requirements that can be quite different.