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TCZellars
03-26-2008, 11:57 PM
want to start a business. got 1 mill in liablity, full auto insurance (collision, theft, liability) and my equipment is covered all for 1800 a year, now lets say i can make 10,000 dollars this year, i pay 1800 for insurance, which gives me 8,200, what taxes do i have to pay and out of my 8200 dollar profit, around how much will i have left?

kleankutslawn
03-27-2008, 12:07 AM
talk to a accountant.you will take a lost the first couple years

cgaengineer
03-27-2008, 07:01 AM
want to start a business. got 1 mill in liablity, full auto insurance (collision, theft, liability) and my equipment is covered all for 1800 a year, now lets say i can make 10,000 dollars this year, i pay 1800 for insurance, which gives me 8,200, what taxes do i have to pay and out of my 8200 dollar profit, around how much will i have left?

Count on about 1/3 going to your Uncle Sam. And as the other poster said, you may want to talk to an accountant.

AI Inc
03-27-2008, 07:05 AM
want to start a business. got 1 mill in liablity, full auto insurance (collision, theft, liability) and my equipment is covered all for 1800 a year, now lets say i can make 10,000 dollars this year, i pay 1800 for insurance, which gives me 8,200, what taxes do i have to pay and out of my 8200 dollar profit, around how much will i have left?

Well for stsrters you dont have $8200 profit. You have to pay for the phone , fuel , truck repairs and registration. Uniforms ect. Like the other guy said , get a good accountant.

Atlantic Lawn
03-27-2008, 07:52 AM
If thats all you make in a year and You are an adult, I don't think you owe anything, I'm amazed your even able to eat.

David Grass
03-27-2008, 07:59 AM
You will always pay if you are self employed, because it goes on form C, and SE (social security). Your social will be around 15 percent after a little deduction maneuver over on form 1040, and you WILL ALWAYS PAY THIS, even if you show a profit of 400 bucks (under then maybe not). Then run the amount on form C, after your standard deductions or itemized deductions thru the tax table and it will tell you the Federal tax, on top of that social security tax. Dont forget now, in most states, you get to pay them something too!!! Most of us are eaten up with the social security.

cgaengineer
03-27-2008, 08:41 AM
If thats all you make in a year and You are an adult, I don't think you owe anything, I'm amazed your even able to eat.

He could be part time, and if he is at least he has insurance!

J&R Landscaping
03-27-2008, 08:55 AM
You might end up grossing 10k but after your expenses your not gonna be bringing home to much... I would find a good accountant like others have said.

larryinalabama
03-27-2008, 09:05 AM
Anyone know what the current deduction for mileage is? Im thinking its over .50 cents?

larryinalabama
03-27-2008, 10:04 AM
Bump... anyone know the current deduction for mileage?

CLARK LAWN
03-27-2008, 10:21 AM
for 08 it is 50.5 cents

TCZellars
03-27-2008, 03:32 PM
i just turned 18 and im trying to go legite this year.

hotwired
03-27-2008, 04:23 PM
If you are grossing under $20,000, it should be easy enough to bring your tax liability down to zero. I grossed $140,000 in 2007 and brought mine down to zero from 179 deduction and leftover loss carrover from previous years. I usually buy around $5-$10k equipment per year and write off via 179. In addition, retirement plans, etc. etc. will eat up quite a bit. I'm happy to share my chart of accounts with you via a quickbooks setup. I can upload it for you. It's a sample i created based on my real company for a book I wrote.

TCZellars
03-27-2008, 10:21 PM
thats exactly what ive been looking for......if you could upload that it would be a great help!

bigclawnman
03-27-2008, 10:55 PM
If you are grossing under $20,000, it should be easy enough to bring your tax liability down to zero. I grossed $140,000 in 2007 and brought mine down to zero from 179 deduction and leftover loss carrover from previous years. I usually buy around $5-$10k equipment per year and write off via 179. In addition, retirement plans, etc. etc. will eat up quite a bit. I'm happy to share my chart of accounts with you via a quickbooks setup. I can upload it for you. It's a sample i created based on my real company for a book I wrote.

For us to get your upload, does that mean we need to get quickbooks to use it. Sounds awsome to me. Let me know and thanks.

Slcareco
03-27-2008, 11:05 PM
How do you not show your full income with out going to jail????

ALC-GregH
03-27-2008, 11:25 PM
If you are grossing under $20,000, it should be easy enough to bring your tax liability down to zero. I grossed $140,000 in 2007 and brought mine down to zero from 179 deduction and leftover loss carrover from previous years. I usually buy around $5-$10k equipment per year and write off via 179. In addition, retirement plans, etc. etc. will eat up quite a bit. I'm happy to share my chart of accounts with you via a quickbooks setup. I can upload it for you. It's a sample i created based on my real company for a book I wrote.

Do you work by yourself?

ALC-GregH
03-27-2008, 11:35 PM
What is a real percentage of expense versus income as far as taxes, fuel, insurance and all the other stuff? Would you need to take half or 50% of the gross earnings to cover all the expense or maybe 40%??

CLARK LAWN
03-27-2008, 11:43 PM
that will vary between companies depending on what your overhead is. "How do you not show your full income with out going to jail????" who said they dont report their income? its called write offs.

ALC-GregH
03-27-2008, 11:47 PM
OK, another dumb question, what can be written off on a annual basis? Everything you spend money on for and to run the business?

ALC-GregH
03-27-2008, 11:49 PM
I'd think you could pocket cash but it could hurt you more then help I'd think.

HOOLIE
03-27-2008, 11:55 PM
How do you not show your full income with out going to jail????

It's easy, just don't get audited and you're fine.

Slcareco
03-28-2008, 12:14 AM
Explain the write offs if you dont mind :)

What I gather anything like dinner with friends family, bought pencils, envelopes, mowers, gas? can be write offs?

How does it work literally like the process....

CLARK LAWN
03-28-2008, 12:36 AM
dinner with family/friends is not a write off but anything for your business is,ie: equipment,fuel,supplies,advertising,uniforms,etc...

Alluring Lawns
03-28-2008, 12:41 AM
The milage rate is 48.5 cents per mile for 07', but Im sure it will be raised for 08'. If you should any profit of over $400 dollars on your Sch C for the business then you will be hit with self-employment tax. In this line of work you will want to take your milage for your truck, not actual expenses such as gas, repair, depreciation ect. Also, if you are showing a loss in your first year make sure depreciate out any big ticket purchases such as mowers trimmers ect. So you get a deduction for them for years to come. Any other questions, let me know. I do taxes during the winter and lawns in the summer. Good Luck

hotwired
03-28-2008, 05:58 AM
Hi
Yes, you'd need quickbooks for the file to work. Email me at ken@centralmaineweb.com and I'll let you know where to get it. Actually, skip that. Here it will be in moments!

www.lawnguru.net/quickbooks/

eps
03-28-2008, 09:38 AM
I believe it is 48.5 cents a mile.

Slcareco
03-28-2008, 09:38 AM
dinner with family/friends is not a write off but anything for your business is,ie: equipment,fuel,supplies,advertising,uniforms,etc...

Its called 'business meetings'

how does a write off work?

Slcareco
03-28-2008, 09:41 AM
Also I bought a 21,000 dollar pick up last summer but Im not in business yet can that become a write off?

CLARK LAWN
03-28-2008, 09:44 AM
you will want to keep track of all your biz milage and you can take a deduction on the milage for 07 it was 48.5 for 08 it will be 50.5 cents

hotwired
03-28-2008, 12:44 PM
The truck will be "placed in business" whenever you started. To be safe, you can use the half year convention for depreciation. PLEASE get an accountant though. This can mean the difference of thousands of dollars either kept in your pocket OR given to uncle sam. I'm happy to share my profit and loss with you for 2007. I don't want to paste it for the world to see, but please send me an email at ken@lavoieslandscape.com and I'll shoot it to you.

ALC-GregH
03-28-2008, 02:45 PM
Ken, ygm

thanks for taking the time to read.

Exact Rototilling
03-28-2008, 02:49 PM
Alluring Lawns,

I've been stumbling through Turbo Tax schedule C for many years with my other part time business.


How do I gracefully move my truck from that biz to my LCO biz or can I keep them under both businesses for mileage? Technically we will have 3 business under the same roof for our 2007 filing
so I'm assuming all 3 business need to ride on a single home office deduction for just one of the businesses?

At what point can one deduct vehicle repairs, total vehicle expense etc. on a vehicle that is now covered under commercial insurance for 2008 or would I still be better off claiming mileage?

I've spent a huge amount of cash on equipment this year and frankly I won't make much profit until possibly September October so I would obviously depreciate equipment for 2008 however at what income level [personal profit] should I restructure and step sideways to a Corp or LLC to reduce the tax burden?

Last question if I decide to get an accountant to help for a small solo LCO what is the going rate? My expenses have skyrocketed this year and I'm not eager to spend another $2000 a year.

CLARK LAWN
03-28-2008, 03:56 PM
my accountant this year cost me 450. as for the truck i am switching one of my trucks from milage to actual expenses this year on advise from him since i had to rebuild the front suspention and the rear end. when your out plowing snow your burning alot of fuel and not puting any miles on so the milage rate didnt rally payoff to well.