Centum Bookkeeping

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Centum Bookkeeping Bookkeeping and accounting for small businesses.

10/01/2026

Myth: "A raise pushes me into a higher bracket, so I'll take home less." 🚩

Reality: federal income tax is marginal. Only the dollars above a bracket line are taxed at the higher rate — everything below keeps its lower rate. Your existing income is never re-taxed.

Swipe for the simple math with an example. DM "BRACKETS" for help.

General info on US federal income tax brackets, not tax advice. Rates simplified for illustration.

09/30/2026

"Don't take the raise — it'll push you into a higher bracket and you'll take home LESS!" 🚂

Nope. Never. US federal income tax is marginal: your income is sorted into brackets like cargo into towers. Your base pay keeps its low rate, and only the NEW dollars from the raise get taxed at the higher rate. The higher rate never touches your old money.

So more pay always means more take-home. Never turn down a raise. DM "BRACKETS" for help.

General info on US federal income tax brackets, not tax advice. Rates simplified for illustration.

09/29/2026

Myth: "I'll pay myself from the business and deduct it." 🚩

Reality: for a sole proprietor or single-member LLC, paying yourself is an owner's draw — not a business expense. For income tax, you and the business are the same taxpayer, so moving your own money between accounts changes nothing.

You're taxed on net profit either way. Swipe for the full picture. DM "DRAW" for help.

(Your setup may differ if your LLC is taxed as an S-corp — then you're paid a salary through payroll, and that salary is deductible; distributions still aren't.)

Educational info, not tax advice.

09/28/2026

Paying yourself $5,000 from your business checking and writing it off to lower your tax bill? Nice try. 💸

If you're a sole proprietor or single-member LLC, the IRS treats you and your business as one and the same for income tax. Moving money from your business account to your personal one is an owner's draw — like moving a twenty from your left jacket pocket to your right. You didn't spend anything.

You're taxed on your net profit (income minus real business expenses) whether you take the money out or leave it untouched. DM "DRAW" for help.

(Your setup may differ if your LLC is taxed as an S-corp — then you're paid a salary through payroll, and that salary is deductible; distributions still aren't.)

Educational info, not tax advice.

09/25/2026

Myth: "I was meeting a client when I got a parking ticket, so it's a tax write-off." 🚩

Reality: IRC §162(f) strictly bars any deduction for government fines and penalties.

Here is the rule every business owner needs to remember:
• Parking garage fee? Deductible business travel expense.
• Parking meter receipt? Deductible business travel expense.
• Expired parking meter ticket? 0% deductible penalty.
• Speeding ticket on the highway? 0% deductible penalty.

Swipe through for the full guide on how to categorize road expenses so your books stay audit-proof. DM "FINES" for help.

Educational info, not tax advice.

09/24/2026

Rusty saved up $600 in speeding tickets, parking fines, and red-light camera tickets all year — and figured since he was rushing between landscaping jobs, they were all deductible business expenses. 🏎️😅

Reality (IRC §162(f)): fines and penalties paid to the government for violating the law are NEVER deductible. It doesn't matter if you were in a company vehicle or on the clock.

The gas and parking meter fees to visit a client? Deductible.

The ticket for speeding or parking illegally? That one comes 100% out of your own pocket.

Slow down, feed the meter, and keep your books clean. DM "FINES" for help.

Educational info, not tax advice.

09/23/2026

Myth: "I spent $20,000 getting ready to launch, so I get a $20,000 tax write-off." 🚩

Reality: the IRS treats pre-opening spending under completely different rules (IRC §195).

Instead of an instant full deduction:
• You can deduct up to $5,000 in Year 1
• The remaining $15,000 is amortized over 15 years (180 months)
• If total startup costs exceed $50,000, that initial $5,000 deduction begins phasing out dollar-for-dollar

Swipe through for the breakdown of what qualifies, what counts as equipment, and how to time your launch right. DM "STARTUP" for help.

Educational info, not tax advice.

09/22/2026

Rusty dropped $20,000 on a giant neon sign, custom leather jackets, and radio commercials before mowing a single lawn — and figured he’d write off every penny on Day 1. 😅💸

Reality (IRC §195): money spent BEFORE your business opens is legally a "startup cost." It is NOT a normal, immediate deduction.

Here's how the IRS actually treats it:
• Deduct up to $5,000 in Year 1
• The rest ($15,000) is deducted slowly over 15 years (180 months)
• If total startup costs exceed $50,000, that $5,000 cap begins phasing out

The lesson: open the doors first, then do your shopping[cite: 1]. DM "STARTUP" for launch bookkeeping help.

Educational info, not tax advice.

09/21/2026

Myth: "The sales tax on my invoices is extra income." 🚩

Reality: it was never your money. Customers pay it for the state, and you're just holding it until you remit it. Spend it and you still owe every penny when the return is due.

And because it's a "trust fund" tax, owners can be personally liable if it isn't paid. Swipe for how to handle it. DM "SALESTAX" for help.

Educational info, not tax advice.

09/18/2026

Rusty thought the sales tax on his invoices was a magic "tip" from customers — and blew $2,000 of it on pizza and rims. 🍕😅

Reality: collected sales tax was never your money. The customer handed it to you for the government. You're just holding it, and you owe every penny when the return comes due — spending it doesn't change that.

Set it aside and don't touch it. DM "SALESTAX" for help.

Educational info, not tax advice.

Address

270 Regency Ridge Drive
Centerville, OH
45459

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