Friday, October 31, 2008

I'm just venting...

Ok, so this summer when I was sick I apparently got a tax bill form from the Utah County assessors. I never even saw it until a few weeks ago when I was cleaning off the computer desk. I had no idea what is was and actually assumed that it was sent to me in error - I've been in business about 5 years and have never seen a form like that. So yesterday another one was sent by certified mail. Apparently the government NOT ONLY taxes you on your income, but also on all the personal property you own for your business. That's double taxation after sales tax. And they retax you every year for the same items on a depreciated scale. I had NO idea that I had to pay taxes on my preschool property. Somehow I missed the list the first 3 years, but now I have to go through every receipt for the last 5 years and write down EVERYTHING I own for the preschool, when I purchased it and how much it cost. I called to complain/ask about how to do this. She said I had to include everything even if it's primarily for home use, if it was dontated (I have to guess a figure), if I bought it at a yard sale, etc. It really sounds like an unsurmountable task to me. Most of my stuff has been donated, or I owned it before preschool, or I bought it for the family and just use it for preschool, or I bought it at a yard sale or DI or the dollar store (all of which give generic receipts or no receipts.) So anyway, I was ticked off. Luckily Steve agreed with me when I told him about it. (It's great to have a husband who sympathizes with you.) Anyway, am I wrong in thinking that a small home business shouldn't have to deal with this? I barely make enough after expenses anyway! Now I'm going to be taxed more. Plus, I think it's a bad way for the government to want to stimulate the economy - if a business is double taxed for everything they buy and retaxed yearly, they will want to buy less. Anyway, I'm on the assessors naughtly list and I'm sure I'll be audited. But actually I'd be happy to have them figure it out and not me!

7 comments:

Paige said...

Oh, what a mess. I would be really mad too. Good luck, how exact does it have to be??

Mom G said...

Well, I had no idea! What a hard thing - just to know what you have and its worth seems impossible. Do they want to tax the things that have been given to you (I have made a few things). Let us know what happens. Scary - not a fun scary on Halloween either.

Lighthouse said...

I think this is horrible! Totally not fair! What are you? An accountant or a pre-school teacher??? This seems way tooo complicated and totally not fair. I sympathize with you. I am really dumb when it comes to taxes. I didn't know what my exemptions should be set at... And I just got a tax bill for 2007. Apparently they weren't taking enought out of my check. My exemptions should have been set at 3 or 4 and they were set at 5? Who knew...

The Gibsons said...

Oh Kim I am so sorry to hear this. What a mess. I am glad we don't have to mess with that. That is why we rather have an office so we don't have to. Too bad you can't do it somewhere else.
Good Luck.

Sandra said...

We have to do that for Victor's business, and it is not fun at all. I sympathize with you. We finally decided just to put the big equipment items on (his big machines, etc.) and not put anything else on (shhh, don't tell!). So, maybe you should just put the "big" items on. I wouldn't worry about every single little thing, but that's just me.

Mark and Kellie said...

Sorry, Kimmy. We used to list Kellie's typing/editing income on our tax returns and tried to figure out the other stuff relating to what percentage of the house is used for the business, etc. . . It was a lot of guess work, but I don't remember ever getting a form like you received. Maybe it's a Utah thing? Even though Kellie didn't make a whole lot doing the typing, we listed it on the tax form. I think it ended up being both a benefit and a negative for us. More taxes (since she didn't receive a paycheck per se), but some deductions as well. I'm just glad we don't have to do anything complicated like that anymore. Maybe it's time to head over to H&R Block -- or at least their website. I always use their website to file my taxes.

Clarkson said...

Oh taxes! Why my husband wanted to become a CPA is beyond me . . . We just got something saying we owe more taxes than we actually paid in 2006. Whatever. We'll blame that on the fact we lived in California then and the whole state is messed up. Anyhow, it's fun looking at your blog. Blogging is awesome to keep up with everyone. I can't believe your baby is almost here!