The Joy of Taxes

Tonight I'm doing something different; probably nothing that you would notice. I'm writing this blog entry late at night, before I crawl in to bed and go to sleep. I hope I'm awake enough to compose this entry with some semblance of readability. Before I move on, however, I need to introduce this post by stating that tax guides for corporate taxes (e.g., Form 1120) are no where near as complete as those that are developed for personal taxes (e.g., Form 1040).

I wrote about my taxes a few days ago, focusing on the topic of deductions and accountants. Since none of the accountants I have tried to contact have responded to my requests for assistance, I decided to claim zero deductions. This has made the federal tax form easy, all zeros. The state tax form, however, is a six page behemoth that also requires the attachment three federal forms, even if you didn't have to fill them out for the federal taxes. Needless to say, I didn't have to fill out these forms for federal purposes, but will for state purposes. Thus, making the state taxes even longer. I'm glad I have accounting fees established in the budget for the school. There's no way anyone but an accountant would be able to figure out the state taxes, and even the complete federal taxes, once income and expenses become an everyday occurrence.

In regards to the deductions, I took none. I'm hoping I can carry them over to future years. Since we will be applying for federal exemption soon, we might not even have to worry about that, since in general, our income will not be taxable. It's also likely that our expenses will equal or exceed income (remember, we are not for profit - therefore expenses should match income), thus we won't even have to worry about carrying forward the current deductions.

This will probably be the last I write about taxes until they become due again next year, unless they spot some errors or have questions. I hope they don't!

Til next time....
Bryan