dataxguy

Quick Tax Tips For The Tax Season (Tip #25)

12:00 AM Jamaal Solomon 0 Comments Category :





AUTOMOTIVE TAX TIPS

In today's post, we will learn straight from the IRS about the basics of filing taxes as a automotive dealer. For more information, click on the source link. 

Helpful Tips - Automotive Tax Tips


This section provides users with important information to keep in mind when reporting taxes for your automotive business.


Form 8300


Who must file?

Each person engaged in a trade or business who, in the course of conducting that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions must file a Form 8300. Any transactions conducted between a payer (or its agent) and the recipient in a 24-hour period are related transactions. Transactions are considered related even if they occur over a period of more than 24-hours if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. Form 8300 may be filed voluntarily for any suspicious transaction, even if the total amount is less than $10,000. You, as the filer, should keep a copy of each Form 8300 for 5 years from the date you file it.


When to file?

File Form 8300 by the 15th day after the date that the cash was received. If that date falls on a Saturday, Sunday, or legal holiday, file the form on the next business day.

Provide a written statement


You, as the filer, must give a written statement to each person named on a required Form 8300 on or before January 31 of the year following the calendar year in which the cash is received. The statement must show the name, telephone number, and address of the information contact for the business, the aggregate amount of reportable cash received, and that the information was furnished to the IRS. Keep a copy of this statement for your records.


Changing Accounting Methods


Changing your accounting method generally requires IRS approval. To get approval, you must file Form 3115, Application for Change in Accounting Method. A change in your accounting method includes a change not only in your overall system of accounting but also in the treatment of any material item. A material item is one that affects the proper time for inclusion of income or allowance of a deduction.


Installment Method

If you finance the purchase of your property, instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale. It is not an installment sale if the buyer borrows the money from a third party and then pays you the total selling price.


RELATED POSTS

0 comments