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View Full Version : How to write off certian types of equipment


ShortCuts
03-12-2001, 05:58 PM
I recently took over the lawn company that I have worked for, for the last 4 years we have already dumped $$$,$$$ into the new business, so far this is what we've picked up:

1 2001 ford F350 4x4 v10 w/ dumping 12' stake body
2 26 hp Walker EFI's
1 exmark turf tracer w/ECS
2 echo 2601's
1 redmax eb6200
1 16hp Billy goat
1 16' Mason Landscape trailer

I am just curious how I would go about writing all these new items off? Are the walkers a 5 year write off? I have a feelng that i'm gonna be visiting the H&R Block guys next winter.I'm just trying to get a feel for things. Thanks in advance!

joshua
03-12-2001, 06:05 PM
thats alot of new toys, sounds like it would be fun. personly i would give everything to who does your taxes, some could be a 2 year write off others just one.

John Allin
03-12-2001, 07:06 PM
And, skip the H&R Block dudes....
Get an accountant that will learn what you do and advise you on related financials.

OBRYANMAINT
03-12-2001, 08:39 PM
agree big time with john....get one and then keep him

4 Saisons
03-14-2001, 11:41 PM
H&R blocks are the Wal Mart of tax report.

you need a professionnel and personal service.

Kent Lawns
03-15-2001, 10:13 AM
No less than 5 years on any road vehicle under any circumstances. (Most are 7 years)

Equipment can be written off IN FULL up to $17,500.00 anually (IRS Section 179)

But certianly go to a CPA who can handle this for you.

bob
03-15-2001, 06:43 PM
Get a real CPA. That H&R Block guys not going to be around in August , when you have another tax question.

kutnkev
03-15-2001, 08:42 PM
before you spend any money now or later, call your local office of the small business admin. and speak to the S.C.O.R.E. advisor. and sign up for the seminars they offer. you will save yourself alot of money and headaches. also do a search and you will find more awwers on tis topic.

hope this helps..... kevin

thelawnguy
03-15-2001, 09:30 PM
Originally posted by Kent Lawns
Equipment can be written off IN FULL up to $17,500.00 anually (IRS Section 179)

For 2000 tax year the limit has increased to 20,000. It generally goes up a token amount each year.

Greenkeepers
03-16-2001, 04:48 PM
OK the first thing that you need to do is forget about the HR Block guys..

Your equipment can be DEPRECIATED over 5 years for the bigger equipment. I would take 3 years on the smaller trimmers and blowers.

The 3 year depreciation is going to accelerate your depreciation expense which will lower your net income.. Now the section 179 expense that everyone was talking about is $20000 for year ended 2000 and $24000 for 2001... You can only use section 179 for propety that you purchased in that year and it can only be used for the amount of income that you have and can't create a loss.

Hope this helps please email me if you have any other questions.

ShortCuts
03-16-2001, 05:24 PM
Thanks for the responses....This is certianly a learning expirence. How much do you guys spend a year on a CPA?

E-man
03-16-2001, 10:01 PM
Get publication 946 from the IRS. It lists all the ways to depreciate any kind of equipment. It is updated yearly, but most of the information never changes. It covers everything from 179 Deduction, MACRS, and Listed Property.

http://www.irs.gov.com

eslawns
03-17-2001, 08:14 PM
Get a CPA who knows something about contractors. They will be familiar with this. Also, at the IRS site you can order a CD from them called the Small business resource guide. Best money you will spend is on a good tax man. What good would it do to make a lot of money, just to let Uncle Sam get it all?

Grateful11
03-20-2001, 10:05 PM
>How much do you guys spend a year on a CPA?


Right now my business is quite small and my CPA does all my work at Tax time. He does all my tax work for $175. He's worth every penny.

As far as righting off, he wrote my main mower off in a one year period. Instead of depreciating it out over a period of time.
Grateful

jeffyr
03-25-2001, 03:15 PM
I pay $425 for my biz and family. And I think he is worth every penny of that. It all depends who you are comfortable with. My acct also takes care of investing, life ins, and now mortgages and can advise on all. He is the owner of the corp. so I know he is working hard for me (and year after year the results are there).

jeffyr

dmk395
03-25-2001, 06:51 PM
Everyone is telling you the right advice, get a CPA. Also I would look into purchasing the Quickbooks accounting package. This way you will develop some knowledge about accounting and it will be easier for the CPA. First things first though, get the CPA.