View Full Version : Estimates as a business expense?

General Landscaping
10-04-2006, 12:45 AM
When doing estimates, is there a way to "write off' the time/expense from your income?

In a larger company that has an estimator; I'm sure that employee's wages, vehicle, etc are taken off the income total. Why not a solo operator?

Maybe "charge" for estimates and write off as uncollected debts?
Keep a log of time used doing dead-end estimates and put it into advertising costs?

Anybody got a system that is legal and works?

10-05-2006, 08:35 AM
it is overhead.. which IS deductable.

10-05-2006, 08:37 AM
it is overhead.. which IS deductable.
Thats about the size of it...ANY expense you shell out in order to run your business IS tax deductable...Just has to be business related...

10-07-2006, 05:21 PM
it is overhead.. which IS deductable.

When you say it is deductable overhead, are you saying you can file it as a business expense on my schedule C?

For example if I spend 200 hours preparing estimates and meeting with prospective customers, I could claim that as a cost? Could I just claim that my time is worth x amount of dollars and multiply that by 200?

To be sure if I paid someone else to do it their pay would be a deduction

10-07-2006, 05:29 PM
yep, but then that money would have to be claimed as income to you, and actually paid...I believe.

10-07-2006, 08:41 PM
yes, it is a business expense.

from the sound of what you have said, i assume you are paid a salary from your business. You cannot deduct YOUR time seperately from doing estimates if your salary is accounted for in the general overhead somewhere.
That is double dipping.

10-08-2006, 07:11 AM
NO double dipping!!!:nono:

At least thats what my wife tells me...:laugh: