View Full Version : Tax question
12-03-2009, 03:21 PM
How do I handle this situation? I just got my business name (sole proprietor) and I have already bought my equipment. But, I have not and most likely will not do any lawn services in '09. I assume that I will have to declare the equipment this year, correct? Or have I screwed up by buying before the new year? Thanks
12-03-2009, 03:58 PM
I am relatively new to the business (at least as a sole proprietor) so take it with a grain of salt. I do not know if you need declare something this year:confused: but here is what I do know from my dad's work as a sole proprietor (lawyer).
I know you can take equipment deductions across several years. Ie. If i buy a new mower this year I can write off one third of the price of the machine for the next three years instead of the full price this year. This would help you with your issue at least somewhat. Also you are not foolish buying your equipment this time of year, at least if you live up north like me it is all really cheep when the snow starts to fly.
Well hope that is somewhat helpful. But you need to seek real advice from qualified help and or research on the federal tax info sites. I would not simply follow what anyone says on here (my self included). I know from my own experience i took a bath on taxes because i did not have enough information.
Good luck this is the part of the business i have
There are only two things that are guaranteed, death and taxes.:drinkup:
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