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A long walk.
Aug. 26th, 2014 09:52So many changes, so many steps to take.
Back in April, Michelle and I finally admitted to ourselves and everyone else that we have more going out every month than is coming in. In terms of income vs. outgo, we were about $200 a week in the hole and that this situation was unlikely to change in time to be of any help, so we made to decision of declare bankruptcy and be done. The highest hurdle was just admitting to ourselves that it was okay to do so, and we've gotten a lot of support since, most of it prefaced with the question, "What took you so long?"
Short answer: pride. Simple pride. We hope to have the whole process in motion before the end of September, everything formalized by Christmas, and the whole discharged in a few years.
As a part of this process we have a new accountant; we'll call him "TaxGuy." Turns out our old accountant "Bart" was just a numbers man with no deep understanding of tax law, and we've been screwing ourselves for years. "TaxGuy" is an expert at playing the numbers and the laws.
For instance, we once asked "Bart" if we should incorporate Seamlyne. Oh no!, he said, too much hassle, not enough benefit.
TaxGuy's first action was to incorporate so we could take advantage of the deductions. As a partner at Seritas, I had to pay almost of third of my income, which wasn't just the weekly check: gross pay + the value of my benefits pkg. With Map's Edge Media now a corporation, I'm still a partner, but will no longer be paid as one (in tax terms). Instead, I'll be employed by my own corporation a fraction of what Seritas was paying me: Seritas will merely by contracting me through Map's Edge effectively cutting my tax burden by two-thirds, and making everything I do related to Seritas deductible: mileage, home office, etc.
Stunning. I want to go find Bart and make him pay the attorney's and new accountant's fees.
Back in April, Michelle and I finally admitted to ourselves and everyone else that we have more going out every month than is coming in. In terms of income vs. outgo, we were about $200 a week in the hole and that this situation was unlikely to change in time to be of any help, so we made to decision of declare bankruptcy and be done. The highest hurdle was just admitting to ourselves that it was okay to do so, and we've gotten a lot of support since, most of it prefaced with the question, "What took you so long?"
Short answer: pride. Simple pride. We hope to have the whole process in motion before the end of September, everything formalized by Christmas, and the whole discharged in a few years.
As a part of this process we have a new accountant; we'll call him "TaxGuy." Turns out our old accountant "Bart" was just a numbers man with no deep understanding of tax law, and we've been screwing ourselves for years. "TaxGuy" is an expert at playing the numbers and the laws.
For instance, we once asked "Bart" if we should incorporate Seamlyne. Oh no!, he said, too much hassle, not enough benefit.
TaxGuy's first action was to incorporate so we could take advantage of the deductions. As a partner at Seritas, I had to pay almost of third of my income, which wasn't just the weekly check: gross pay + the value of my benefits pkg. With Map's Edge Media now a corporation, I'm still a partner, but will no longer be paid as one (in tax terms). Instead, I'll be employed by my own corporation a fraction of what Seritas was paying me: Seritas will merely by contracting me through Map's Edge effectively cutting my tax burden by two-thirds, and making everything I do related to Seritas deductible: mileage, home office, etc.
Stunning. I want to go find Bart and make him pay the attorney's and new accountant's fees.