Questions for anyone who is a federal contractor

[Bigfoot]

I am starting a new job training dogs for the federal govt March 1 and will be a contract trainer. This was my specialty for the last 23 years as a civilian police officer and am looking forward to getting back to work with dogs. I've done the process where I've registered as a sole proprietor and all the other difficult paperwork. I know I'll need to pay my own taxes quarterly and my wife is good with stuff like that so figuring out what to pay should be ok. What I'm trying to figure out is is there any resource where I can find what exactly I can deduct and can't off the taxes. I'm wondering if I'll need to hire someone for the first year to help with the taxes. This is a five year contract. Any advice from anyone in this position would be appreciated.

[Marcarl]

I'm not from your area, or even your country, but knowing what I know from Canada, hire someone who is a good book-keeper, maybe even aa accountant. Do this right away so that they can advise you in how to properly set up your books, what to buy and when to buy, what you can claim and what you can't, and where and how to allocate in the books. It can make a significant tax issue if it's not doen right, and can save on taxes if executed properly.

JMT

Carl

[Tombo]

I would recommend getting a tax accountant to help you the first year, after that you can determine whether you need that level of support for the subsequent years. BTW what you pay the accountant is deductable as a business expense. You will find that you will have a lot of deductions, but want to maintain accurate records, particularly when it comes to business use of your vehicle. Are you going to be working out in Front Royal?

 

PS - did you see the story about the CBP K-9 bite at IAD yesterday?

[camos]

I ran my own small business for 25 years. I did my own books using a double entry bookkeeping program which is auditable. Starting from scratch with no prior knowledge it did take a while to understand how it works and learn how to set it up so it did not choke. If you or your wife understand how that system works it wont be too difficult to do. You can also pay her a stipend for the work. Definitely get a good tax accountant, recommendations from people you know are best. Don't do it yourself because laws change every year and you probably won't keep up with them even if you understand what they mean.

 

Good luck in your new enterprise.

[Gamecock]

I am a Federal Contractor, but not a 1099. I sent you a PM with some good info. Let me know if I can help any other way!

 

 

Ben

[RandyR]

talk to the Small Business Administration, both federal and state/commonwealth. They may be able to give you much if not all the specific information that you need.

[Bigfoot]

Thanks for all the info guys. Hiring an accountant sounds like a good idea.

 

Tombo. Yes, I will be out in Front Royal. I did see the story regarding the Customs dog. Pretty sad for the kid. I'm sure the next order coming down the tube from the Customs bosses will be to get rid of the "Pointy" ear dogs. Meaning the Shepherds and Malinois. The CIA did that when they had some aggression issues with a couple of their pointy ear dogs.

[KiteSquid]

The ONLY way to find out what is deductable is to READ the IRS publications for that tax year.

 

 

If you read the block on your tax return that your preparer signs, it says they did the math correctly..... YOU are responsible for the return and what you claimed!!!!!!!!!!!!

[MiCarl]

You're not starting a job, you're starting a business. You need to get with an expert (business accountant) yesterday. How you structure the business will impact reporting requirements, legal requirements, ability to offer yourself retirement and health plans etc.

 

A Sole Proprietorship may not be the best way for you to operate.

[Bigfoot]

You're not starting a job, you're starting a business. You need to get with an expert (business accountant) yesterday. How you structure the business will impact reporting requirements, legal requirements, ability to offer yourself retirement and health plans etc.

 

A Sole Proprietorship may not be the best way for you to operate.

 

MiCarl,

 

Based on the choices I had when filling out the CCR I had no choice but to choose Sole proprietorship. But hiring an accountant ahead of starting the process would have been a good idea.

[BEER30]

MiCarl,

 

Based on the choices I had when filling out the CCR I had no choice but to choose Sole proprietorship. But hiring an accountant ahead of starting the process would have been a good idea.

 

You said CCR ......OMG ! LOL !!!!

If you haven't already , try LLC .

We have a PA . They are cheaper than a CPA . Look for a good one . One that will BE YOUR FREIND . Ask questions and select one that answers your questions thoroughly and answers you in a way that you can understand . Our PA in not certified , but has a assoc/partner that can review and Certify the books in a short notice at a reasonable fee . Generally a PA is cheaper for services than a CPA and should know just as much . We have a CPA for the first 3 years . They charged us the average of $800 per quarter and more to close the books at the end of the year . Our PA that we have now only charges us $50 a quarter and $75 at the end of the year and HSGI is incorporated as well . Also my wife does all the books as well and the PA proofs them .

Receipts ...... keep every darn one of them for all expenses , including mileage , dog food , vet , and the pooper scooper , office and training supplies , etc.........

 

As far as CCR , get your Brad and Duns # , EIN# , Cage Code# , TPIR# , and all that other BS# as well to deal with the gov. . If you have problems , contact the CCR and they can instruct you on what all you need to get . Also CCR is paid 30 day net . You only have to give 2% off to get 10 day net if you want your money faster . When working with CCR , remember to log in occasionally to update your account and to refresh the system . Make sure you have all your input ready and available to type it in , or you will time out pretty quick and it's a hassle to start all very again .

 

Hope this info. helps out .

 

BEER30

[Bigfoot]

Actually no. Probably more confused than ever. But I'll figure it out and I appreciate the advice.