S/o business owners: what expenses do you have

↑ notshanarishona

Fri, Sep 06 2024, 9:17 am

amother Salmon wrote:

I’m a photographer, not a shaitel macher. I accept cc but very reluctantly. I pay a high fee on each transaction. It doesn’t mean I don’t pay taxes, it means I don’t want to pay the cc processing fee

Why not checks? It’s the cash only model that bothers me. I understand not taking credit cards

amother

Jasmine

Fri, Sep 06 2024, 10:01 am

I run a legal business in Israel. I pay 17% vat on any money that comes in and I pay a 3% cc swipe. The 17% I pay regardless of if I have no profit that month. I also have to pay rent, employees, accountant, materials, bituach leumi (think Healthcare for my employees) and also a pension.
Let's break it down. Assuming I make 20,000 nis.
2000 goes to taxes and cc swipe
6500 rent
1000 accountant
4500 employees
1200 materials
1000 advertising
=16, 200.
I'm left woth 3,800 nis. This doesn't include gas to get to work.
If I took cash and didn't report it, I would have an extra 2k nis. This is pretty significant. It's hard to make a living and I totally get those who do cash businesses without paying taxes. I would support them. We're all just trying to get by.

StylishTichel

Fri, Sep 06 2024, 11:43 am

mandr wrote:

photographer:

computer software
computer hardware
camera and studio equipment
taxes
accounting fees
subcontractors

Can I add "time"?

not much else thankfully.

I'm a photographer too. I would add:
Hard drives
SD cards
Relevant props
Gas and tolls (I don't do have a studio, I do mostly outdoor/in home/venue and I charge extra for non-local travel but local travel is an expense)

Rubber Ducky

Fri, Sep 06 2024, 1:01 pm

Kitchen Design/Cabinet Sales/Space Planning:

Software: SketchUp Pro (3D CAD), the Adobe Creative Suite
Sample cabinets, doors, and displays
Regular and large format printers and toner and specialty paper
Laser measure, other measuring tools
A dedicated room in my house for the printers and samples, and my breakfast room dominated by my computer desk and work-related stuff — my business is home based
Up to date high end Mac Studio computer, iPad Pro, iPhone
Car-related expenses
Odds and ends — like I just bought a good tripod for taking pics of finished projects
Advertising
Website including maintaining the website and updating it
Bookkeeping software
I would also have accountant expenses except that DH is a CPA.

My side business, The Balabusta's Daily Organizer:

Software: the Adobe Creative Suite
Printing expenses because we have to pay a printing company to print and bind the planners
Shipping to our distributor, Israel Bookshop Publications
Advertising
Regular printer and related expenses
Up to date high end Mac Studio computer
Proofreader/Copy editor
Payng for Zmanim for 30 different cities
iStock photo for the cover pic
Website including maintaining the website and updating it
Mailing costs and trips to the post office for people who order a planner through our website and for bulk sales
Bookkeeping software
I would also have accountant expenses except that DH is a CPA.

amother

NeonYellow

Fri, Sep 06 2024, 1:05 pm

amother Brass wrote:

DH does some real estate as a side business. Some of his expenses:

Mortgage on the property he is renting.
Repairs
The months between renters that aren't covered.

We do the same.
While mortgage and repairs cost money. It also helps on our overall taxes a lot. And deprecation. I find being a business owner and owning property has benefits just from the tax benefits of the expenses. We end up coming out ahead specifically bec of the expenses.