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View Full Version : Tax write-offs & Craigslist


Ole' Hickory
12-21-2009, 09:55 PM
I have purchased a bunch of equipment from craigslist. The equipment will be used for my business next year. Can I write a bill of sale for this equipment (from my name to my business) and write it off on my taxes? Has anyone ever tried this? Is it legal??
Thanks for any help

unkownfl
12-21-2009, 11:40 PM
Not going to get into it to much here. Here is the basics.

http://www.microsoft.com/smallbusiness/resources/finance/tax_advice/how_to_write_off_your_startup_costs.mspx?xid=c0006

bohiaa
12-22-2009, 10:17 PM
sure you can, just remember to have someone that will come visit you each weekend....

NO you CAN NOT MAKE UP YOUR OWN BILL OF SALES ............

JUST DONT DO IT

Ole' Hickory
12-22-2009, 11:38 PM
HaHa -That's a good one,
OK, good tip Bohiaa.
Anyone in here ever been pinched for something like this?

unkownfl
12-22-2009, 11:49 PM
Its up to you to do what you want; however, the burden is on you come audit time. What is your chance of being audited you ask? Not that high, but neither is getting hit by a car or crashing in a plane but it happens to people every day. The only way to truly stay clear is to avoid it. How much did you make this year gross? Only reason I'm asking is if you ever need to prove income for a home or anything credit wise if you have no tax liability then you won't have any income to loan against. Now a days you need at least three years of verifiable income if your self employed.

Ole' Hickory
12-23-2009, 12:20 AM
Its up to you to do what you want; however, the burden is on you come audit time. What is your chance of being audited you ask? Not that high, but neither is getting hit by a car or crashing in a plane but it happens to people every day. The only way to truly stay clear is to avoid it. How much did you make this year gross? Only reason I'm asking is if you ever need to prove income for a home or anything credit wise if you have no tax liability then you won't have any income to loan against. Now a days you need at least three years of verifiable income if your self employed.

2010 will be my 1st year self employed, so technically I guess I made nothing. However, for the past few years I've been a forman for another LCO and I've been picking up my pieces as I go and now I'm ready jump into the pool. My intent is to begin with as little as possible overhead, and it worked but its gonna hurt to not write any of this stuff off. -Truck included.......Ouch!!

unkownfl
12-23-2009, 12:33 AM
If it is your only truck, mower, and hand held equipment I find it hard to believe you are going to be able to convince the IRS that you don't use it for your own property as well assuming you need to take care of it. You can write it off if you have some sort of documentation. A check, or something that is traceable. You have to look at it this way how do they know what you paid for it or even if you paid for it. I'm in the same position as you. If you bought a truck you registered it then you paid your sales tax on it. You can write off the tax you paid and also deprecate the truck or use mileage. I hope you didn't lie to the tag agency about the price if so you already got your deduction lol. You can write off the expense of doing business clothing oil gas for equipment the truck will depend on how you deduct it. You can deduct your licensing fees insurance tags and even a portion of your rent or mortgage or if you own outright you can charge your company rent also depends on the type of business you have. Are you a LLC or corp or just sole proprietor? I bought three mower that total about 10,000 all of which I with drew cash and paid in cash so I'm up the creek without a paddle there in all reality it looks like I just cut myself a check for 10,000.

sdk1959
12-23-2009, 12:41 AM
You bought used equipment, if you paid by check or money order there's your proof you need. You could also call or email the seller if you still have that info and ask them to mail you a receipt.

If you paid cash and can't get a receipt from the seller it could be dicey as you will have to assign a fair value for what you bought. Get a good accountant that knows the tax rules and how the IRS operates (not H&R Block!) and you will save a lot on your taxes.

Ole' Hickory
12-23-2009, 01:12 AM
Yep, I paid cash so I guess thats-that.
I have meetings with accountants next month and I wanted to bring this up but I figured I'd check to see if it is a common practice when starting in the biz.
Still weighing SP or LLC. I'll be part-time in the spring with another part-time job. 2011 will certainly be LLC.