Woodworker's Journal 1983-7-4, страница 14
INTRODUCING THE FINEST HANS SANbEB VQU WILL EVER USE Ipinrres Qvi*HTiTt" PAm AT THlV Cfr< A«» £vr*0O«/CT0Ry fcffttr . b 4 I.fa itiiQ/fiLid s-CULF utvibtu rj '.. • HAHDWOOD BLOC< • TUN6 Oil- FINISH • 100% WOOL. FELT PAD • SANblNS SURFflCr • t?ET PLACE SAN OF* PER iri SECONDS • GET r |VE RfcD'i FROM A STANDARD 9'x II* SHEET • HflctwooD knob With metal THREADED INSECT E>@>H>*£r Po BOX 180J TUSTIN, CA, 92681 Are your fingers worth $5 apiece RIPSTRATE1" could save them! a THE EXTRAORDINARY SCREWDRIVER This exciting product-THE SQUARE HEAD-is now available to fine wood working craftsmen. Used by the finest furniture manufacturers, this screw driver/screw with the unique snug fitting SQUARE HEAD makes the slot and Phillips heads obsolete. Featuring many outstanding characteristics: • Heat treated SQUARE HEADS-One handed screwing to reach difficult places • No slipping from screw head • Fastest system available • Maximum torque possible - Eliminates gouged fingers and gouged wood * Essential for the serious woodworker s wood shop Send for starter set of 3 drivers with matching screws. Price $8.50 plus S1 .50 postage and handling includes complete list of available SQUARE HEAD products (add 5.5% in Ohio). Master Charge and VISA JEGT INDUSTRIES PO Box 5264 Poland. OH 44514 »!02 20«30*22H BUILD THIS SET OF MATCHING TABLES Easy to Follow Plans Detailed Instructions Buy Your Spindles or Make Your Own Plans S 5.00 Each or Both for $9.00 PEARSONS WOODESIGN Box 9062. HaV»ard. Wl 54843 Workshop Income (Cont'd) looked are inventories and depreciation. You'd be surprised how many businessmen, by failing to keep meticulous account of every materials and overhead expenditure so as to be able to charge those to the business, wind up paying income tax on items of deductible cost. Income taxes apply whether your workshop income is a sideline or whether it's the way you make a living. It's more complicated - but in a way more important -- to keep track of things when the business is a sideline than when it's fulltime. It's more complicated because you have to apportion certain costs, like depreciation, supplies, and housing the shop into personal and business categories. You can deduct only the business portion. It's more important to keep track of it all because workshop income added to employment income is likely to mean a higher tax bracket. So the more deductible costs you can wring out of the income the greater the taxes you save. Either way you slice it, good records are the key. You should get advice from an accountant, for there are many judgment calls to be made about how you keep your records, about how you value certain things (inventory, for example), and about how you depreciate capital items (tools that are not used up within one year, for example). The purpose of this discussion is not to bring you to conclusions about those things or to tell you how to keep books. It is, rather, to suggest some of the implications and some of the questions that should be put to an accountant who can take all of the aspects of your business and other income into consideration. Whether you're part-time or full-time, and assuming that your business is not incorporated, you're required to file a Schedule C along with your personal Federal Form 1040 on April 15 of each year. It's entitled "Profit (or Loss) From Business or Profession." If you can show a loss you can deduct that from other income and figure taxes due only on the net. If you show a profit you must add that to other income and figure taxes due on the total. It's possible to have a small dollar profit but show a tax loss in a given year, but you have to show a taxable profit in two out of five years or Uncle won't consider it a real business. In most states and localities that also impose personal income taxes you'll also have to file with (and pay) those taxing jurisdictions. Schedule C is not difficult. Indeed, it's a good guide on which to base a bookkeeping system. Just keep in mind, however, that it's designed to present a picture of taxable costs, not the real costs we've been talking about in an earlier column. If you don't have one already, by all means get a copy of a publication called "Tax Guide for Small Business," also known as Internal Revenue Service Publication 334. It's free and available from The Internal Revenue Service, Washington, DC 20224. Your local IRS office may still have copies on hand reflecting the tax laws in effect for 1982. In general. Schedule C simply guides you through figuring the materials and labor costs assignable directly to goods sold. You deduct these costs from gross receipts. Then you subtract other costs not attributable directly to manufacture of specific items. What's left is net profit, and is taxable. That includes all the value added by your labor and your skill. It also includes any additional markup, or profit -- the return on what you have invested in the business. In essence, a workshop business is manufacturing. Even if you sell at retail you're not merely buying goods and selling them. You're buying parts (lumber and hardware) and assembling them (after refashioning the lumber) into a manufactured product. So the first records that you must keep meticulously on the cost side are those that will enable / . .. -.___.______1 II you own a table Or radial arm saw you know what lhal whirling blade could do to your hands. RIPSTRATE" guides the work tight against the lence and table while you push it Ihrough with a slick, with both hands away from the btade. ALSO PREVENTS KICKBACKS. Requires no adjustment. RIPSTRATET" is not just a salety device. Professional shops use it becauseit gives straighter cuts and speeds the work. Money back guarantee. S54.50, Add S3.50 shipping.Check. Visa, M;C. Free brochure. Call or write: Fisher Hill Products 3 Fisher Hill Fit z William, NH 03447 603 585 6883 |
