Wednesday, April 22, 2009

Taxes and Day One of Your Company

"In filing my taxes this year I am being informed that it would be in my best interest to file my trading activities as a business. I am wondering when my business might be considered day one? Jan 1, 2008? or the day I file my taxes in 2009? or? If its 09 the best I could do is file after Venus goes SD. Thanks Rick

If, when filing taxes this year, you decide to declare your trading activities as a business - what is your new business' natal chart?

Good question! Is it the date and time you file the taxes? No!

In the Textbook for Financial Astrology, Book I, I discuss a number of astrological considerations when selecting a date to start a business. However a lot of business start before you read the Textbook. How do you decide the time and date the business started?

The rule of thumb is when you collect the money for your first sale.

Rick, one of my excellent students, thought of a very tricky question to figure, especially when you started trading you weren't officially "trading as a business". But it's actually the very same principle I discuss in my Textbook.

If you sold something and the money was put into your account on a certain date that is the beginning of the business that you are paying taxes on. If the new business is starting in 2008 then you will use the start date of the first day you were paid for the sale of something in 2008. It does not matter when you bought the object for sale. What matters is when someone paid you for the object.

Rick checked through his trades in 2008 and found the very first profitable trade. We calculated the chart and he agreed that it seemed to describe his business.

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