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View Full Version : Can someone help me with this simple tax question?????


TMGL&L
10-02-2008, 12:56 AM
I know these questions are totally like beginner for some of you out there. If it is plz fill me in here.

First off, where can I find the categories necessary to organize my deductions correctly...In other words, I want to put my daily expenses from everyday into categories that will fit into a. . . . . Schedule C ? .....:confused: Is this where I can find the categories?

Advertising, Car and truck expenses, Commissions and fees, Contract labor Insurance, Legal and professional Services, Rent or lease equipment , repairs and maintenance....etc.....I'm guessing these categories are how I should sort my expenses....

Now I'm looking at a receipt for gloves...What are these deducted as....

I'm so lost, I know. Any input would be great.

Thx

AJ Lawnscapes
10-02-2008, 01:36 AM
Get an Accountant. Keep all reciepts and file once a year.

TMGL&L
10-02-2008, 04:55 AM
yup, well I have the reciepts part down alright. I must have millions of them.

Turboguy
10-02-2008, 06:44 AM
There is also a blank space where you can add catagories. I would list the gloves under "supplies". You could put anything you have to buy under that catagory including gas for your equipment. Anything such as shovels and rakes, string for a trimmer, could be put under that. Repairs might be another catagory you need to add.

lawnman_scott
10-02-2008, 09:32 PM
Go to www.irs.gov and go to forms and publications. Print out a schedule c and keep track of your expences according to the form. You dont want to take a box of receipts to an accountant. That would cost a fortune for something you can easily do yourself.

garnersgardening
10-02-2008, 10:58 PM
You could do all of that or purchase a program like Quickbooks. They actually make one for contractors and during the setup it offers this industry. This made it really easy for me because it has it all in the chart of accounts it also gives an option when you are in putting your data for if your not sure to ask accountant so when you print out what your CPA needs it shows that and he sees it. Also and accountant will most likely want to see receipts but if you keep it all organized he may not need them for everything. What I did for that is I have an excel spreadsheet that all receipts go on. I did different pages for things like equipment purchase, fuel, small equipment like gloves, maintenance, ice and gatorade for employees, etc.etc. This will be taken to my CPA as well so hopefully he will not want to see every receipt. A good CPA requires to see the receipts since he is putting his name on the federal form for preparing your taxes he wants to make sure you do not try to get over. That way if you get audited he can represent you. You will need to keep those receipts for several years just incase you do get an audit. Small businesses are 2 times more likely to get audited. If you have any questions please ask. I do not know everything but I do know alot.

Fvstringpicker
10-03-2008, 11:07 PM
For starters, follow lawnman scotts advice. You can add a few categories like fertilizer/pesticides, landscaping materials etc., but don't get too extensive. Use the KISS principle and try to fit as much as you can in the categories provided. Don't worry about the "cost of good sold" section on page 2 unless you have large inventory of resale items. Unless you want to jump through hoops, keep your vehicle expenses and equipment expenses segregated. I am a CPA.

mngrassguy
10-07-2008, 08:20 PM
Equipment fuel needs it's own catagory. Your accountant can submit a fuel tax refund because your equipment isn't being used on the road.

DA Quality Lawn & YS
10-07-2008, 11:45 PM
Get an Accountant. Keep all reciepts and file once a year.

Not sure I agree with this statement. Perhaps this person has a very small biz and does not have the cash or want to pay a high priced accountant to do the tax work. No reason he cannot organize and file his own business taxes. He is just looking for advice.

mngrassguy
10-08-2008, 01:36 AM
Not sure I agree with this statement. Perhaps this person has a very small biz and does not have the cash or want to pay a high priced accountant to do the tax work. No reason he cannot organize and file his own business taxes. He is just looking for advice.

I'm not so sure about that. Even when my business was small, my accountant found many things that I missed. I ended up getting 2k back after he filed amended returns for the previous years. I paid him $400.00. Good return on investment.

TMGL&L
10-08-2008, 03:09 AM
I just filed a few days ago. I put almost everything I could in the catagories provided. I used turbotax for just about everything. It worked out fine.

The hard part was catagorizing hundreds of expenses which took hours. My lawyer said the most important thing with any tax form is just to get the math right and not raise any eye brows. That way there wont be any alarms.

I disagree with the statement about the auditing though. It sounds like one of those random statistics that come out of the media to scare people.

I'm no expert but just think about the logistics of an audit of a small business...Why would the irs look to employ multiple accountants, spend thousands and thousands of dollars adn tons of time and paperwork to audit small landscape firms to recover a few thousand dollars and collect fines... or find out that company couldn't afford it.

Its always good to play it safe and always be conservative however I dont think audits are as likely as we believe them to be.

causalitist
10-08-2008, 04:08 AM
I know these questions are totally like beginner for some of you out there. If it is plz fill me in here.

First off, where can I find the categories necessary to organize my deductions correctly...In other words, I want to put my daily expenses from everyday into categories that will fit into a. . . . . Schedule C ? .....:confused: Is this where I can find the categories?

Advertising, Car and truck expenses, Commissions and fees, Contract labor Insurance, Legal and professional Services, Rent or lease equipment , repairs and maintenance....etc.....I'm guessing these categories are how I should sort my expenses....

Now I'm looking at a receipt for gloves...What are these deducted as....

I'm so lost, I know. Any input would be great.

Thx

dude, the categories are not a big deal... you get the same deduction regardless and its not something irs cares about ... as long as its all legit and backed up by reciepts dont sweat it. now.. all the other tax stuff... sweat.

pay a dude $90 to do it for u. thats what i do. u gotta amortize your large purchases etc etc.. you could do it, but the fact that ur asking here means pay an expert.

PestPro
10-10-2008, 07:41 PM
dude, the categories are not a big deal... you get the same deduction regardless and its not something irs cares about ... as long as its all legit and backed up by reciepts dont sweat it. now.. all the other tax stuff... sweat.

pay a dude $90 to do it for u. thats what i do. u gotta amortize your large purchases etc etc.. you could do it, but the fact that ur asking here means pay an expert.

Try QuickBooks

lpkatsavage
10-13-2008, 09:20 PM
an accountant would really help. i file my own suta, futa, and 941's which are really easy, and then i get my accountant do my year end taxes. it costs about $650 but is really worth it.

dwlah
10-13-2008, 09:39 PM
My bookkeeper comes by once a quarter to check everything (to make sure I havent totally messed up)
Her thing is be consistant with the way you file/enter stuff
Its not the deduction you take its the pattern you set to get the deduction

LawnLady10
02-02-2010, 06:39 PM
You can Google chart of accounts for landscapers and you will get quite a few sites that have pretty good chart of accounts lists. From there you can add in anything that you want to be able to track. I have a couple of trucks, one diesel and one gas. I like to know what was spent on each so each receipt gets a note at time of purchase so I know what vehicle. Then when I enter the receipt it goes under Truck Expense:Fuel:TruckName. At the end of the year I know what I am spending on what. It is all in what info you want to know. The more you know, the more you grow. Again, once you have the basics you can then decide what specifics

DA Quality Lawn & YS
02-04-2010, 11:39 AM
Try TurboTax Home & Business for those that want to do it themselves.
So easy to use. If you are a solo op especially, look into this.

Roger
02-05-2010, 08:02 AM
I agree with the advice of working with an accountant. With the complex tax laws, how can we know what is acceptable, and what is not? Funny, ... we read a never-ending stream of posts about why home owners should hire lawn service providers to manage their property, yet we strain at the thought of spending money on a service that is necessary to operate a business.

Those who know the provisions of the tax laws are much better prepared to know how to save you the most tax money. As somebody suggested above, most likely the money spent on an accountant will be saved, perhaps a couple of times over because they know how to get you the least tax burden. No, not suggesting shading the truth here, just using what provisions are available, ones that 99% of us know nothing about.

DA Quality Lawn & YS
02-05-2010, 12:43 PM
If you are a simple mow/blow solo op - can you even afford an accountant for simple Schedule C stuff? Seriously think about doing it yourself unless you have no comfort level at all.

More complex businesses....acct makes sense.