How do you guys pay for fuel???

[chrisk]

This maybe another dumb question but here it goes.

I have been using cash to pay for my fuel in the truck and mowers and 2cycle stuff.

My father made a suggestion that I should keep as much cash as possible (not report it) and use a check card or credit card for any purchases.

Therefore only being taxed on what I put in the bank and having credit card reciepts for deductions.

What do you guys do????????

Thanks again!!!!!!!!!!!!!!!!!!!
I am learning so much from you great people!!!!!!!1
Chris

[SIG]

Your Father is a smart man. I use an exxonmobil card that way I can see all the purchases and it's easier at tax time. Always keep your cash in your pocket.

[TLS]

Seperate CC for mower gas, Seperate card for truck gas.

Save reciepts, and calculate gallons of gas used over past year, and deduct federal road tax for your mower gas.

Truck gas is deductable as a vehicle expense.

Thats why were in business.....To write off business expenses!!!

[John Allin]

Lemme see if I got this right.....

Your father is actually advising you to keep any cash you get and not report it - as you are legally obligated to do?? Have I got that right?? Hmmmm.......... And, you're posting that here for a whole LOT of people to see???

Receipts are legal methods of substantiating expenses, whether they are from a credit card or a receipt from the station manager. However, in an audit the auditor needs to believe that the receipt if for fuel that got used in the business.....

I may be wrong, and I often am... but it seems to me that if you get caught not reporting earned revenue, but still keep deducting expenses - your credibility just might be suspect.

Now, I'm certain that more than a few people posting here have 'forgotten' to report some cash they were given, but I seriously doubt that they would post the "evidence" of tax fraud on line here.

And for those few that might wonder - we report all income, cash or no, as we can't afford the problems that come from irritated revenuer's if they can prove that........;)

[Russo]

1. You WANT to show that you're paying for fuel. It is an expense.

2. You don't need to use a credit card or check card to get a receipt.

3. There are many LEGITIMATE ways to minimize your tax burden. Pay your fair share.

4. You don't pay taxes on what you put in the bank. You pay taxes on your profit. Keep accurate records of everything.

I may be taking you too literally or misunderstood something?
But I pay cash for everything ( or check card ) and get receipts.

There's no dumb questions, only dumb people who won't ask.

[chrisk]

Thanks guys,,,,,

I know what to do now!!!!!!!!!!!!!

[LawnLad]

ChrisK - if you're asking this about gas purchases... what else are you buying and not getting get a receipt for? Anytime you buy something for the business, the cost of that item is fully deductible. Some things excluded (food, entertainment, etc.). It's the difference of using pretax dollars versus post tax dollars.

[Bob Minney]

I use a gas co credit card. That way I have a statement to check against receipts.

[Pro-Cut Lawns]

I pay cash and get a receipt. The station I buy gas doesnt mind writing out a receipt. As a matter of fact, they now have it written out by the time I walk in for the pumps. Same with everything as Lawnlad said. Keep all receipts for anything related to your business. I bought chain and eyebolts to put safety chains on my trailer drop gate this weekend, and kept the receipts. It all adds up in a hurry!!

[yardmonkey]

I haven't been that inteested in the details of the accounting so far. I keep everything very simple and I have an accountant who does my taxes for me. As I understand it, you can EITHER deduct all your vehicle gas and repair expenses OR take a standard deduction based on the mileage. So far it has been better for me to take the mileage. Consequently, I have been very lazy about getting receipts for gas. For some reason, they never give those unless you ask. Probably I should be paying more attention to that, but so far it hasn't mattered, as long as I keep track of business mileage.

[musselman]

I have a charge account at my favorite gas/food store. He sends me a monthly statement and I also get a reciept at each purchase. Its a great setup because accounts get 10 cent off per gallon if they pay on time each month....in this buisness that adds up in a hurry. The guy who owns the place also has a motel and guess who get to mow the grass....to bad the station has no grass

[General Grounds]

:blob3: hey guys use my american express, i get airline miles, paid for my vacation last year and at exxon and mobil they give you 5% credit on your bill. we usually spend about $2,000 a month on gas so every bit helps, tony

[KirbysLawn]

I'm the same as General, I put all gas on my AmEx gold and pay at the end of the month.

[PetalsandPines]

5% ???? I thought it was 2% ??????

[2 man crew]

I pay with AMX also. That way I dont need to wait in line for a receipt. I just pay at the pump and go. Just save the monthly statement and that's your receipt for the month.

[maple city]

You say you have an accountant. You need to sit down with him and ask what all you are able to claim for the business. I keep receipts for everything I use for the business from the no brainer things like gas and oil to computer supplies like paper, ink, etc. because I do all of our billing statements and advertising. If it's not legit, your accountant will tell you.

If you are also working another job, there are probably other things you can claim as well, uniforms, union dues, medical insurance, child care.

You need to sit down and talk to your accountant so you don't miss out on.

I have been using gas receipts, and not mileage because the price of gas is so high.

[General Grounds]

:blob3: sorry pines your right 2%. tony

[little green guy]

I have an account at a gas station in town. It's so much easier that way because when one of my workers needs to fill up a truck or mowers they don't have to worry about cash or anything and I just get a invoice at the end of the month so I don't have to worry about recepts and all that either.

[Brickman]

For me mileage is much easier to keep track of. And then I keep all the receipts for mower fuel.
If the price of diesel was to get out of hand I might consider fuel, oil, and other maint. costs. But since I only have ONE vehicle for biz and personal it is TONS easier to keep track of mileage, and not have to try and prorate what percent was biz, and what percent was personal.
My write off last year for the truck was around $12K, I put tons of miles on in a year.

[General Grounds]

:blob3: i have no problem with my workers getting gas either each truck key has a speed pass on it so they alwqays have access with gas.