Just A Reminder For Those Of You That Actually Pay Taxes :)

[[BV]]

Originally posted by Greenguy
The balance in my business account on Dec 31st showed ZERO on my papers. The balance was of course not zero i at the bank, because some stuff wasn't yet deposited or cleared or whatnot, but when I did my paperwork & saw that I had X amount of money left over, I just took a "distribution" for that exact amount & stated fresh for 2005.

I do this every year & my accountant loves me for it

As far as overdrawing, jsut don't do it. I take distributions once or twice a month & base it on what's int he account after I've paid my bills & whatnot. So if I have Y amount in there, I'll take out Y - Salary (so there's money in there on Pay Day) and nothing more.

I agree that's (above) good advice but sometimes overdrawing happens. maybe even just by a tiny bit.
The point I was trying to make though is that the amount you draw is not what you pay taxes on. You don't have to draw anything if you don't want and let it ride, but the taxes still need to be figured & paid and that figure is not based on what you draw out.