Project "V", Income Taxes, and My First Deposit

August 22, 2015 Posted by Tyler Cruz

It’s been 9 days since my last blog post so I thought I would give you an overall update on what’s happened since then.

Although I’ve used my accountant’s firm to handle my income taxes since around 2003, it still takes a lot of time and effort myself. I have to dig up all my accounting history over the past year for both my personal self as well as the corporation’s income taxes. Next year, I will have to do this for the new holding corporation as well!

When you add in affiliate marketing, it just makes all this even more time consuming as I have hundreds upon hundreds of transactions going on. In fact, I probably have close to a hundred sources of income and expense sources that I have to organize information from!

Then there’s the unfortunate reality that many online sources offers very poor accounting and reporting options, so I end up having to dig deep to get the necessary information, often having to request the necessary information from various company’s accounting departments.

Lastly, there’s crap such as having multiple credit cards and bank accounts, exchange rate and multiple currency accounts, etc. So, even though I have somebody else do my taxes, it’s still a lot of effort just to gather all the information to pass onto them!

Anyhow, it’s always something I’ve despised having to do and always procrastinate in getting it done. Last year was my latest ever and I even had to pay the government a penalty and interest on that penalty for being so late!

I’ve finished preparing my 2014 personal taxes, and am now roughly 20% done preparing the operating corporation’s 2014 fiscal year’s taxes. When I finish, it will be a huge weight off my shoulders and will allow me to allocate more time towards other work things.

My First Deposit

While I literally held the keys to my first rental income property a month ago, I didn’t actually receive my rental income until just a week ago.

This is because I am using a property management company to oversee the property, which means that there is a bit of a delay from when they receive the funds on the 1st to when they process it, take their cut, and then send to me.

So here it is, after the property management company took their 10% cut:

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A few days later, they also sent me an accounting spreadsheet documenting all the details. All I have to do is keep those and send them to my accountant at the end of the year. Easy!

Anyhow, obviously the $1,505.10 I received is not all profit. I have bills to pay: the mortgage, city utilities, property tax, and insurance. And I keep a contingency fund for capital expenditures, repairs and maintenance, and vacancies.

Project "V"

Finally, here are a bunch of updates pertaining to my website idea.

First off, I am now referring to the website idea as Project "V" for easier reference.

I had an NDA and non-compete documents made up and signed by both interested investors (and myself). I then created a slideshow presentation and presented it to the first investor online via a Skype conference call.

He asked questions throughout the presentation (about every 1-2 minutes in fact) and I would pause and address them until he was satisfied with my answers. Once the presentation got to the point where it revealed the main idea, the investor started to become very excited.

The presentation ended up taking 2 hours! Since I was talking 97% of that time, my throat was very sore by the end of it! I am not used to talking so long – in fact I’m not used to talking at all! Here’s a screenshot I took of Skype once it finished:

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When I finally finished the presentation, the investor was extremely excited about the project. He definitely wants to come on board for a $15,000 investment. We’ve been communicating everyday since about the project. He’s very excited.

The second interested investor is located in a time zone 9 hours ahead of mine and we had a hell of a time coordinating a time to schedule the presentation. So finally I decided that I would just record the entire presentation again on MP3 and then send him the slideshow so that he can follow along.

In fact, I actually literally said "click" each time I would click on the next item of the presentation so that he could follow along exactly with me. I didn’t record a screencast because it would have been too huge if it was another 2 hour recording. I actually added a few slides to the 2nd presentation (18 total)!

While recording it though, I was very cognisant of the fact that the first presentation was so long, so I tried to both speed things up and keep things simple. It seemed to work, as it ended up being an hour long exactly. It probably helped a lot that I wasn’t answering questions throughout Smile

Anyhow, the 2nd investor ended up not being interested at all, so he definitely won’t be coming on board. He did provide some reasons as to why he didn’t like the idea. I respect his rationale but I personally do not agree with them. I actually think the project has other more concerning issues, such as traffic retention.

So where we stand is a raised $15,000 investment from one investor who is extremely excited.

I am still open to other serious investors coming in (send me an e-mail). Please only contact me if you’re interested in investing a minimum of $5,000. It would also help and speed things up if you can provide some of your background.

Should no other investors come on board, the other investor and I will proceed with creating the investment agreement document, signing it, and having it notarized by a notary or lawyer.

After that it’s off to begin the development phase.

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Posted: August 22nd, 2015 under My Websites  

One Response to “Project "V", Income Taxes, and My First Deposit”

  1. Robert says:

    Hi Tyler, is it RobotWarz2 ? 🙂

PeerFly

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