Question Details:
You know, those HUGE chunks of cash that go to the IRS every year due by April 15 (yes, and/or quarterly payments).
Does this go under EXPENSES type, is this correct? i.e.:
TAXES
Federal
State
Local
or
create under "OTHER EXPENSES" type this way? would this data be handled differently then?
I guess I am confused those huge tax payments are actual EXPENSES or not? Not sure if that would be interfering with the current years tax liability?
Accepted Solution:
Federal Income taxes are not an expense but cost of doing business. Depends on your tax type of business as to where the entry will go too. If, Sch C will end up as Owners Drawings, Corp's etc. into Equity. Review this with your CPA for proper entries into QB.
