Having a hard time figuring out HAWAII General Excise Tax? Diamond Head Tax Group OAHU will tackle the Top 10 Frequently Asked Questions and answer them. For HAWAII General Excise Tax Advisor Services in HONOLULU you can turn to Diamond Head Tax Group OAHU, your HONOLULU Tax Preparation Experts. We will handle your HAWAII General Excise Tax needs and ensure proper HAWAII General Excise Tax preparation and filing.
General Excise Tax or GET is a privilege tax imposed on business activity in the State of Hawaii. Diamond Head Tax Group HONOLULU Tax Preparation Service will help OAHU Businesses ranging from small business owners, freelancers to corporations account for HAWAII General Excise Tax when they undergo tax preparation.
HAWAII General Excise Tax Questions and Answers by Diamond Head Tax Group OAHU - For HAWAII General Excise Tax Advisor Services - Schedule a HONOLULU Tax Preparation Consultation: 808-468-8041
Source: tax.hawaii.gov
Question 1: Do We Have To Pay GE Tax?
The HAWAII General Excise Tax applies to small business income, independent contractor income, income from self employment, retail income, services income, commissions, rental payments received, and many more types of income. They are all subject to the excise tax.
There are many albeit rare exemptions to HAWAII GE Tax such as for financial institutions, alcohol fuels, ship building, refineries, insurance companies, contractors that clean up hazardous waste, and the like. However these exemptions are somewhat uncommon, and if you qualify for an exemption, you are still required to file the GE Tax returns along with an additional schedule to claim the exemption.
Question 2: How To Get a GET License?
Businesses can apply by filling out GE Tax Form BB-1. Find the most updated form, as HAWAII has revised the form recently, and there are some links leading to government websites that are out of date.
If you need help filling out GE Tax Form BB-1 you can hire Diamond Head Tax Group OAHU to review your situation, prepare, and file the form for you.
Question 3: Is It Possible to Write Off GE Taxes Paid on Federal Taxes?
GE Tax expenses can be written out, though every situation is different with some exceptions.
HAWAII General Excise Taxes can be deducted on federal schedules E (for rental income) and C (for sole proprietorship income). If you have a multi-member partnership or corporation, GE Tax can often be written off on the appropriate income tax forms.
Be sure to take the deduction in the year that you actually “paid” your tax bill – not the year for which you “owed” the tax. Consult with Diamond Head Tax Group OAHU Tax Professionals for the proper way to take this write off.
Question 4: How Often Should GE Tax Be Paid?
Form G-45 must be filed on a monthly basis if you pay more than $4,000 total in HAWAII GE Tax during the year.
Form G-45 must be filed on a quarterly basis if you pay less than $4,000 in GE Taxes during the year.
Form G-45 must be filed semi-annually if you pay less than $2,000 in GE Taxes during the year.
When you sign up, pick a frequency appropriate to how much tax you plan to have to pay. If you select a filing schedule that is too infrequent, the Hawaii Department of Taxation will likely change your GE Tax account and inform you about it.
Question 5: Is Payment Required for Businesses That Didn't Make a Profit?
Businesses that did not make a profit must still pay GE Taxes just like with sales tax. HAWAII General Excise Tax is based on gross income not net income meaning that all rents received are subject to the tax – even if you operated your rental unit at a loss. The same goes for business.
Question 6: How Much Can Customers Be Charged?
HAWAII Businesses are allowed to pass the tax on to their customers, but if they only add the tax rate amounts then they are not quite collecting enough tax to cover the taxes due. This is because the tax is calculated on the total amount collected, including the extra for the tax. It can get a bit complicated, which is where tax professional assistance comes in handy.
Many businesses can add 4.712% to each sale on OAHU, KAUAI and BIG ISLAND, and 4.1666 on MAUI.
Question 7: What Happens with Missed Payments?
Businesses that do not file and pay GE Tax can be subject to penalty and other enforcement actions.
If you have been renting property or running a small business and not paying the tax, it’s probably a good idea to fill out an application for a license, report your income, and pay GE Tax.
HAWAII has a tracking system that looks at what you filed on your income tax return. If you have years of self employment or rental income on your regular tax returns, it is very likely that you will get an examination letter from the State of Hawaii at some point.
For those who can't pay the collections department will work with you on a payment plan. Coming forward voluntarily gives much more negotiating leverage rather than being caught eventually.
Diamond Head Tax Group OAHU Tax Experts will help you can minimize or avoid the most common penalties imposed by the IRS.
Question 8: Do I Need Help Preparing GE Tax Returns?
Having tax professionals prepare your GE Tax Forms will make matters much easier by avoiding mistakes with the filings that can result in penalties, interest or unwanted scrutiny from the Hawaii Department of Taxation regarding GE Tax Return filing errors. These complications can be costly or take months to resolve.
The preparation services of tax professionals such as Diamond Head Tax Group OAHU will typically be less than late fees or interest or penalties. So if you are concerned that you might not meet GE Tax Return obligations on time then consider hiring the experts to handle it for you.
Question 9: Does GE Tax Apply When You're Out Of Business?
Businesses no longer collecting revenue subject to the tax are supposed to cancel their active license status. This prevents them from having to file GE Tax Forms with nothing but zeros on them, though this is technically required until you cancel).
To cancel your GE Tax license, fill out a Notification of Cancellation of Tax Licenses and Tax Permits.
Question 10: Do I Need Form G-45 periodically AND Form G-49 at the End of Each Year?
Businesses have to fill out form G-49 in addition to any required form G-45. If a business pays semi-annually and they are a calendar year taxpayer, they have to fill out one Form G-45 for the first half of the year, one Form G-45 for the second half of the year, and one G-49 return to reconcile the entire year.
Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?
As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
OUR TAX SERVICES
Tax Preparation
Tax Planning
Sales Tax Preparation
Professional Payroll Services
Small Business Strategy
Roth IRA Conversion
Charitable Tax Planning
QuickBooks set up
Social Security Taxation Reduction
Featured On
Let's Get Started!
We are here to assist!
Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.
We are available to assist you with your Tax Needs.
Individuals ● Business ● Tax Advisory ● Payroll Services
Комментарии