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racer56
07-08-2007, 07:59 AM
We have a house we just purchased to ad to our rentals. This house has a great lot with a nice view but the lawn is in the dumps. Is it better to pay my company to do all the work for taxes and such or just do the work for free for myself? I tried to call down and ask our tax guys but they always want us to come in and sit down($) for every little thing. They give us some work here and there is why we stay with them I guess. Anyway with all the tree work, and landscaping that will be done we would be at around 5k for this to a customer. We have always just went and did the work, kept the receipts for everything and just let the rest go.

I thought maybe we could use this house as a show place as it is in the enterance of the wealthiest subdivision in the County. Having "paid out labor" will help with cap. gains if we well it soon was part of our thinking. Maybe we could bill say 3k and call it advertising for the business and deduct on both sides on the deal. Everytime we try to save a few bucks with a deduction or 2 and tax perp guys seem to get most of it :rolleyes: .

racer56
07-09-2007, 10:49 PM
Anyone? Have an idea?

carcrz
07-09-2007, 10:53 PM
It's always cheaper to do it yourself. But if you are getting to the point where you can't focus on your other work it is time to sub it out.

Stillwater
07-10-2007, 03:37 AM
Your kidding me right? you own a landscape company and rental property in the wealthiest subdivision in the US, and you are wondering if you should hire a different landscaper to do the work? or do it yourself? This house is in the wealthiest subdivision in the US.? ok you got a 10 or 20 Million dollar home and you are worrying about 5 grand? on cap/gains? Am I understanding your post correctly?????

I truely don't know what to say.

swingset
07-10-2007, 03:58 AM
Your kidding me right? you own a landscape company and rental property in the wealthiest subdivision in the US, and you are wondering if you should hire a different landscaper to do the work? or do it yourself? This house is in the wealthiest subdivision in the US.? ok you got a 10 or 20 Million dollar home and you are worrying about 5 grand? on cap/gains? Am I understanding your post correctly?????

I truely don't know what to say.

Reading comprehension:

He said wealthiest subdivision in the COUNTY, not COUNTRY. I doubt that anywhere Kansas is up there with East Village NY or Silicon Valley.

All that said, it's probably cheaper to do it yourself unless your schedule is too full to take care of it, in which case it's a moot point.

Stillwater
07-10-2007, 04:35 AM
Thanks, I suspected I was not understanding it correctly

racer56
07-10-2007, 06:41 AM
Your kidding me right? you own a landscape company and rental property in the wealthiest subdivision in the US, and you are wondering if you should hire a different landscaper to do the work? or do it yourself? This house is in the wealthiest subdivision in the US.? ok you got a 10 or 20 Million dollar home and you are worrying about 5 grand? on cap/gains? Am I understanding your post correctly?????

I truely don't know what to say.

Put the pipe back down and step away :hammerhead: . I'm not talking about hiring anyone else. I'm asking should we do the work as a company and send a bill to me personally or just do the work and be done with it. Didn't know if this was a better way or not. We have always just done the work and never been able to really show on taxes all the work that had been done. We did a ton of work at one of our other houses last year that we would have billed a customer 8-9k for but nothing on paper to show for it. I know this is more of a tax question but thought someone might be doing something similar.

mphillips4739
07-10-2007, 09:36 AM
Your idea about billing it and booking to advertising makes the most sense. Just make sure you actually place a sign in the yard to cover yourself. I mow only part time. My full time job is as an accountant (though not a CPA). Our business is structured where the owner operates several legally separate companies, so we come across this type of issue all the time. If there is a homeowners assoc, and they give out any type of material, you could place an add that states you maintain that property-which would take the place of actually putting a sign in the yard (may be against the rules for the neighborhood). Just my 2 cents. I would, however, charge only actual cost to advt, not what the work would cost for if done for someone else.

Stillwater
07-10-2007, 10:23 AM
I have goode comprenshion I gradgeeated frum the evelenwoodhead sped reding corse

mphillips4739
07-10-2007, 01:54 PM
What?:confused: