# How much do you set aside per shirt for income tax?



## JustinDavid86 (Nov 11, 2009)

We're trying to figure out a good formula per shirt...

As a sole proprietor, how much do you all set aside each sale for your income tax/small business taxes?


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## ajspin (Apr 10, 2008)

If you know what bracket you are in, last year, did you pay 20% etc, then that is what you would put back. I found the 1st couple of years, with me re-investing, I paid little to no taxes.


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## thutch15 (Sep 8, 2008)

ajspin said:


> If you know what bracket you are in, last year, did you pay 20% etc, then that is what you would put back. I found the 1st couple of years, with me re-investing, I paid little to no taxes.


Same here...


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## JustinDavid86 (Nov 11, 2009)

We only opened our doors last week and so I have no idea which bracket I will be in. I appreciate the advice!


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## Screenanator (Feb 14, 2007)

JustinDavid86 said:


> We only opened our doors last week and so I have no idea which bracket I will be in. I appreciate the advice!


Well...then you will be operating at a loss ofr 2010 because of your start up costs. Best thing to do is go see a CPA and go over things like that with them. One year we did our taxes ourselves and ended up with an 18,000.00 tax bill. We hired a CPA to amend our return.....we ended up getting a refund of 2,600 instead of paying 18k.
Good Luck


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## JustinDavid86 (Nov 11, 2009)

Screenanator said:


> Well...then you will be operating at a loss ofr 2010 because of your start up costs. Best thing to do is go see a CPA and go over things like that with them. One year we did our taxes ourselves and ended up with an 18,000.00 tax bill. We hired a CPA to amend our return.....we ended up getting a refund of 2,600 instead of paying 18k.
> Good Luck




Luckily, we have set up an appointment with my personal accountant.

That story just made me look forward to it a bit more. Haha.

Thanks, again.


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