Federal Taxes: Do you include profit you made but have not received?

EdBeck

If you're associated with SmugMug in any way you can move along now. I understand that you can't answer this question and I'm fine with that. Thanks for everything you do!

I just started my business in 2010 and sell my photos through SmugMug. I sold some prints but not many and have not received any of the profit.

Now I' filling out my Federal personal taxes and am going to include income and expenses from my business. Say that I made $100 in profit during CY 2010 but have not received any of it, SmugMug is still holding it for me. Do I add that money to my CY 2010 revenue or not?

BTW - please only respond if you KNOW the answer. Please don't respond with "I've always done it this way and the IRS never said anything" or "I do it this way because the IRS scares the crap out of me". It's not that I'm not interested in your opinion, it's that I don't want to see this thread turn into a fur ball.

Thanks,

Ed

Dan7312

It depends on whether you use cash or accrual accounting to run your business and whether you are a sole proprietor, llc S corp or regular corp. I don't think anyone here could answer your question without sitting down with you and understanding how you have set up your business. You really should sit down with an accountant to see how you want to set up your business.

EdBeck wrote: »

If you're associated with SmugMug in any way you can move along now. I understand that you can't answer this question and I'm fine with that. Thanks for everything you do!

I just started my business in 2010 and sell my photos through SmugMug. I sold some prints but not many and have not received any of the profit.

Now I' filling out my Federal personal taxes and am going to include income and expenses from my business. Say that I made $100 in profit during CY 2010 but have not received any of it, SmugMug is still holding it for me. Do I add that money to my CY 2010 revenue or not?

BTW - please only respond if you KNOW the answer. Please don't respond with "I've always done it this way and the IRS never said anything" or "I do it this way because the IRS scares the crap out of me". It's not that I'm not interested in your opinion, it's that I don't want to see this thread turn into a fur ball.

Thanks,

Ed