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View Full Version : Can a business claim dump fees and equipment rentals on taxes?


jaybow
01-22-2011, 05:53 PM
Just putting together my papers for taxes and was wondering if anyone knows if a business can claim dump fees and equipment rentals on their taxes? Thanks!

Barrett Landscaping
01-22-2011, 05:58 PM
its a cost to your business so.... YES

RHill
01-22-2011, 06:26 PM
I agree, if the expenses are legitimate for the operation of your business, they will be deductable

jaybow
01-22-2011, 06:28 PM
Cool, sounds good. Does anyone else claim them. What other things can a business claim that people might not think of?

Gravelyftw
01-22-2011, 06:40 PM
its a cost to your business so.... YES

^there you go his response should answer all your questions. You can claim anything and everything that you buy that is a business expense. (your workers snacks/lunches...anything)

fl-landscapes
01-22-2011, 06:40 PM
Cool, sounds good. Does anyone else claim them. What other things can a business claim that people might not think of?

we all do, they are legitimate business expenses, I dont mean to be a dink but you may want to have an accountant do your taxes. They pay for themselves in tax savings and piece of mind.....oh and their service is a tax right off too.

JB1
01-22-2011, 06:48 PM
you really need to get someone who knows what they are doing to do your taxes.

jaybow
01-22-2011, 06:53 PM
we all do, they are legitimate business expenses, I don't mean to be a dink but you may want to have an accountant do your taxes. They pay for themselves in tax savings and piece of mind.....oh and their service is a tax right off too.

Ive had an accountant doing them since I started the business, I've just never asked her so I thought I would post on here. Are you saying I can claim the fee for her doing my taxes? I'm a sole proprietor so I do the business taxes along with my personal taxes. Not monthly or quarterly like LLCs or Corperations.

jaybow
01-22-2011, 06:56 PM
you really need to get someone who knows what they are doing to do your taxes.

I have an accountant do them, I just never asked her that.

igotdiesel2
01-22-2011, 07:06 PM
I deduct the fee my accountant charges me to do my taxes. He said to do it so I do it. One thing I do not deduct is my office space in my house. We talked about it and the crap you have to go through is a pain plus he said it throws a huge red flag and I have no desire for a audit. I agree with all having someone who knows taxes is the only way to go. Part of my business owns rental property so it can get a little hairy on taxes. He comes to my home/office with a laptop and a printer and we are all done in 2 or 3 hours. Saving me all kinds of time and money in the process. Best thing I have ever done.-Jason

supercuts
01-22-2011, 07:11 PM
if you have an CPA, you should really be asking her. yes, you can deduct the cost of her doing your taxes. you need to sit down with her and have a chat if you want your business to be successful.

jaybow
01-22-2011, 07:14 PM
I deduct the fee my accountant charges me to do my taxes. He said to do it so I do it. One thing I do not deduct is my office space in my house. We talked about it and the crap you have to go through is a pain plus he said it throws a huge red flag and I have no desire for a audit. I agree with all having someone who knows taxes is the only way to go. Part of my business owns rental property so it can get a little hairy on taxes. He comes to my home/office with a laptop and a printer and we are all done in 2 or 3 hours. Saving me all kinds of time and money in the process. Best thing I have ever done.-Jason

I have an accountant do mine but I always itemize everything before I take it to her and she does the rest. I just need to ask her more questions I guess. But I think I know everything else to claim, I had just never thought to ask about those 2 things. I know when I used to go to H&R Block I barely got anything back. But that was before I had the business going.

Patriot Services
01-22-2011, 07:25 PM
The home office is the quickest way to get an audit. If you don't see customers from it on a regular basis, it's not a legal deduction. Anything used in the course of operating, supplying or maintaining your business is a deduction. Even tolls paid are deductible.
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jaybow
01-22-2011, 07:36 PM
The home office is the quickest way to get an audit. If you don't see customers from it on a regular basis, it's not a legal deduction. Anything used in the course of operating, supplying or maintaining your business is a deduction. Even tolls paid are deductible.
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Yes I have heard that trying to claim an office at home throws up a red flag. Thats the last thing I want. I claim Boots, orange t-shirts I wear while mowing any tools or equipment for the business, mileage, compost bags and now dump fees and tool rentals also. Anything else other then the fee for taxes being done.

Patriot Services
01-22-2011, 07:50 PM
Professional classes, ceu's, books, licenses and insurance.
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LushGreenLawn
01-22-2011, 08:01 PM
A home office is deductible even if you don't see clients in it. The thing is, you have to use it 100% for business. You can't store personal items in it, or make it double as a game/hobby room, ect.

It may be a red flag, but I'd rather take the deduction. If I ever do get audited at least I know I have nothing to hide.

BTW, if your accountant is not sitting down with you telling you what you can deduct, you need a new accountant.

Patriot Services
01-22-2011, 08:14 PM
In keeping with modern times the IRS has made a number of youtube videos. One is titled "home office deduction". Many other topics covered too. Doesn't replace a good CPA though that should play twenty questions with you.
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Landscape Poet
01-22-2011, 08:41 PM
In keeping with modern times the IRS has made a number of youtube videos. One is titled "home office deduction". Many other topics covered too. Doesn't replace a good CPA though that should play twenty questions with you.
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http://www.youtube.com/watch?v=SZyJgbRcvqA

Landscape Poet
01-22-2011, 08:44 PM
Also this link is somewhat helpful

http://www.irs.gov/businesses/small/index.html

igotdiesel2
01-22-2011, 09:36 PM
A home office is deductible even if you don't see clients in it. The thing is, you have to use it 100% for business. You can't store personal items in it, or make it double as a game/hobby room, ect.

It may be a red flag, but I'd rather take the deduction. If I ever do get audited at least I know I have nothing to hide.

BTW, if your accountant is not sitting down with you telling you what you can deduct, you need a new accountant.


My office is also my kids playroom. Another reason I don't claim it. Now my laptop is used 100% business related (believe it or not I am not using it) so I did write it off. I also use a "smartphone" with internet hook up for the laptop so I claim it keeping my internet for the house and business separate.


Something else to look into, keep all your gasoline/diesel that you use in your mowers on a separate credit card. Then you can take all those receipts and deduct all the ROAD TAXES from them as you don't run your mowers and handhelds on the road.

One quick story, I deducted carpet one year on a rental property and the same year I bought a repo house and remodeled it to live in. In doing so I disclosed the fact I bought a repo on taxed for the break. I got a letter from the IRS and about where the carpet went, I sent a letter back explaining that if they found one stitch of carpet in my personal house (all hardwood and tile) I would gladly redo all my taxes. I don't like to temp the IRS! legit or not they are out for blood in most cases. -Jason

lawnpro724
01-22-2011, 09:39 PM
You can deduct last years accounting bills, lunch, dump fees, rental fee's, boots, uniforms, postage you name it. If it has anything to do with your business its tax deductible. You can even deduct part of your real estate taxes for your home if you have a home office.

JB1
01-22-2011, 09:42 PM
yep even the pistol that one would use in protecting there equipment.

Landscape Poet
01-23-2011, 10:58 PM
yep even the pistol that one would use in protecting there equipment.

Interesting, I had not heard that. I did read on here the other day that a guy had his accountant tell him that he could deduct his dogs food if they were trained to "protect" his "office".
All of this I find very interesting. I neither have a gun nor a "trained" attack dog....but if I did I would make sure my accountant was on board about it.

BadRancher
01-23-2011, 11:13 PM
My accountant practically beat every little thing I could write off out of me. I guess that is a sign of a good accountant.

Patriot Services
01-24-2011, 07:21 AM
Interesting, I had not heard that. I did read on here the other day that a guy had his accountant tell him that he could deduct his dogs food if they were trained to "protect" his "office".
All of this I find very interesting. I neither have a gun nor a "trained" attack dog....but if I did I would make sure my accountant was on board about it.

Yep, Rocky is part of my security system at the shop and on the truck. All his food, vet bills and even his original cost and training is deductible.
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Richard Martin
01-24-2011, 09:51 AM
Ive had an accountant doing them since I started the business, I've just never asked her so I thought I would post on here. Are you saying I can claim the fee for her doing my taxes?.

I find it strange that you're asking these questions when you already know the answer. You're doing what they call on tv court shows "asking leading questions". I object. :)

Patriot Services
01-24-2011, 10:04 AM
I know a lot of the questions get rehashed on here. New guys have ADHD and don't want to scroll through numerous pages. Tech changes, new products come out. Tax laws are always changing.
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DA Quality Lawn & YS
01-24-2011, 10:10 AM
its a cost to your business so.... YES

agree 100%.

dishboy
01-24-2011, 10:20 AM
I find it strange that you're asking these questions when you already know the answer. You're doing what they call on tv court shows "asking leading questions". I object. :)

IRS fishing trip?

Landscape Poet
01-24-2011, 11:42 AM
I have seen people on here list lunch as a deduction. I have never did this and will ask my accountant when I go for my appointment. I was wondering how many of you do this.

I know you can do it if it is a business meeting or a business orientated meeting such as while attending a seminar/class for your business but just every day lunch.

One thing I totally forgot to save receipts for was my powder gatoraid mix. I am assuming this would be able to be counted as a deduction since I have to have to keep form getting dehydrated throughout the day. Anyone else deduct their gatoraid?

Patriot Services
01-24-2011, 11:59 AM
It's a supply. Flags are only raised when it is a disproportinate amount or a seemingly unrelated item. Personal lunches don't count. Taking a property manager out does. Again if it is a disproportinate amount it raises a flag. In case your wondering the business type indentifier code helps the IRS determine what are normal types of supplies and expenditures.
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dhardin53
01-24-2011, 12:58 PM
Food only if your entertain a client (limited). Footwear only if its a steel toed boot mandated buy your employment/union or factory. Uniforms if you pay to have them cleaned by a uniform service company, not a T- shirt with our name on it. But a T-shirt with your name on it is considered a deduction under advertising. One time deduction.

Home office and shop space is difficult to separate and IF your audited and questioned about this deduction you better have a lot of great pics and videos of a "TOTAL" separate work space within you home or garage/shop. Then showing dwelling total square feet and what is used for business purposes. The square feet % of the dwelling for your business can be deducted for CODB your utilities and taxes house payment. Having said that, Don't take this deduction for LCO. Its legit but a risky one. Its to easy to go overboard, The IRS WILL find just the smallest thing setting in your designated shop space that don't belong to the business BINGO your had. They go back a long way for fines and penalties. If your shop/garage is a totally different address (Not next door). You most likely in the clear. You can show a separate utility bill and separate tax bill for your business propriety. Its a given as a LCO you do most of your daily work away from your shop. So a shop deduction has to be within reason of your income.
(example, If your $20.000 home office/shop deduction ends up giving you a net loss and you receive a healthy refund. Look out, you are flagged even if your totally in the right with your number, you will be limited to 2 to 3 years of this loss (may have changed 3 to 5). Once you take a audited/flagged loss it don't take long before the IRS will determine you a business is a hobby.) And you don't ever want go there.

starry night
01-24-2011, 01:02 PM
Cat who stays in company barn and catches mice = building maintenance.
Deduct his feed and vet bills.

Patriot Services
01-24-2011, 01:15 PM
Cat who stays in company barn and catches mice = building maintenance.
Deduct his feed and vet bills.

If you can articulate to the IRS agent how those mice eat into bags of fert and seed it will fly.
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Landscape Poet
01-24-2011, 02:51 PM
. Personal lunches don't count. Taking a property manager out does.
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This is what I figured, that is why I questioned everyone saying lunch. I have I think about 10 receipts totally maybe $300.00 for this year I have for my accountant to look at. A couple of "business" lunches where I at on the way to or from a extension course etc. A couple of business dinners - nothing crazy. I will see what she says.

The gatoraid I figured was cool but I did not keep the receipts...that at sunscreen. Both were weekly purchases at WMT and i did not think of keeping them this year.

Landscape Poet
01-24-2011, 02:52 PM
If you can articulate to the IRS agent how those mice eat into bags of fert and seed it will fly.
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Dirthandhoops does a lot of Organic based stuff so I have a feeling that his cats really do help keep his bags of fert protected from the mice.

Patriot Services
01-24-2011, 02:56 PM
Dirthandhoops does a lot of Organic based stuff so I have a feeling that his cats really do help keep his bags of fert protected from the mice.

Or they end up as fert.
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starry night
01-24-2011, 04:11 PM
Dirthandhoops does a lot of Organic based stuff so I have a feeling that his cats really do help keep his bags of fert protected from the mice.

Right on.

Or they end up as fert.Posted via Mobile Device

:laugh: And the nooks and crannies of the barn don't need that kind of fert.

Patriot Services
01-24-2011, 04:48 PM
Right on.



:laugh: And the nooks and crannies of the barn don't need that kind of fert.

So instead of chickity doo doo you use mickey doo doo?
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jaybow
01-25-2011, 11:48 AM
Ok, Taxes ate everything up as far as a refund goes. Between the self employment tax and the income taxes paid this years refund sucks. I guess there was some laws changed as well as some other tax breaks I got last year that I didnt get this year. And since I am a sole proprieter and part time I have since I started done all the taxes at the end of the year. This year I will set money aside and keep reciepts fro things better organized. But atleast I didnt have to pay, but came close.. I got a feeling ther will be alot of people suprised this year.

JB1
01-25-2011, 11:52 AM
Ok, Taxes ate everything up as far as a refund goes. Between the self employment tax and the income taxes paid this years refund sucks. I guess there was some laws changed as well as some other tax breaks I got last year that I didnt get this year. And since I am a sole proprieter and part time I have since I started done all the taxes at the end of the year. This year I will set money aside and keep reciepts fro things better organized. But atleast I didnt have to pay, but came close.. I got a feeling ther will be alot of people suprised this year.


I haven't seen a refund in twenty years.

TMlawncare
01-25-2011, 12:08 PM
I have seen people on here list lunch as a deduction. I have never did this and will ask my accountant when I go for my appointment. I was wondering how many of you do this.

I know you can do it if it is a business meeting or a business orientated meeting such as while attending a seminar/class for your business but just every day lunch.

One thing I totally forgot to save receipts for was my powder gatoraid mix. I am assuming this would be able to be counted as a deduction since I have to have to keep form getting dehydrated throughout the day. Anyone else deduct their gatoraid?


Yes, I deduct gatoraid, postage, envelopes, boots, personal property tax on business trucks/equipment. Being this detailed in your record keeping kills the profit margin but is essential in keeping good tax records.

Patriot Services
01-25-2011, 12:49 PM
I haven't seen a refund in twenty years.

Either your making money or not reporting it or your only 20 years old.
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zturncutter
01-25-2011, 12:55 PM
Either your making money or not reporting it or your only 20 years old.
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Or he doesn"t pay in extra witholding taxes during the year. He keeps his money instead of paying more in than he owes.

RLS 2010
01-25-2011, 01:11 PM
Just wondering, should I not claim a new printer because I use it for business and personel use in a home office I don't claim?

JB1
01-25-2011, 01:55 PM
Either your making money or not reporting it or your only 20 years old.
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Oh I pay some nice quarterly's.

jaybow
01-25-2011, 02:36 PM
Just wondering, should I not claim a new printer because I use it for business and personel use in a home office I don't claim?

If its in a room/ office that is also used for personal dont claim it

Azrael
01-26-2011, 11:36 AM
This idea most likely would not work for sole props...

Regarding the home office/shop space, instead of claiming that as a deduction, pay yourself a lease and deduct the lease amount for office/shop space as this would not throw up the red flags like a 'home office' deduction would.

It wouldn't necessarily have to be a large amount, enough to cover less than the 'expenses' of the business in the personal space. Per the IRS, if you sell/lease something for a LOSS, than it does not have to be reported (e.g. garage sale)

Example: You decide to put a pole building up on your personal property for your business. It costs you $10,000. Pay for it personally and then have your business lease the space from you for less than $10,000. You SHOULD NOT have to report that income on your personal return because it is a LOSS. Any amount of income ABOVE the $10,000 would have to be reported. You would also be able to include utilities in the top amount as well.

As always, please consult your accountant on this for sure.

Again, PLEASE CONSULT YOUR ACCOUNTANT FOR YOUR SPECIFIC SITUATION!!

WheatBookkeeping
05-04-2011, 06:00 PM
Accountant fees, bookkeeping fees, tax preparation costs, dump fees, equipment rental costs are all good and valid deductions. Jaybow, if your accountant isnít bringing these deductions to your attention, get another accountant.

You, as the owner, should not be tasked with having to decide all the tax reporting consequences on the fly throughout your hectic work day. All you should have to do is keep good evidence of all your financial transactions and turn them over to your bookkeeper in a timely manner. Then, your accountant should be competent enough to analyze your books and evidentiary material and create a picture of your company that results in the lowest legal tax obligation.

britsteroni
06-09-2011, 10:31 PM
There is a lot of bad info in this thread. I won't go into many details, but a few glaring objections...

Meals and Entertainment are only 50% deductible.

http://www.irs.gov/publications/p463/ch02.html#en_US_2010_publink100033862

Tax preparation fees are subject to the 2% limit on your Sch A. Many people never see this deduction as 2% of their adjusted gross income is higher than their miscellaneous deductions.

http://www.irs.gov/publications/p529/ar02.html

Consult with a CPA. Do not take the above as professional advice.

Best of luck with your businesses!

wonderboy79
10-06-2011, 12:32 PM
Sweet! Been collecting my dump fee reciepts hoping it would amount to a hill of beans at tax time. Looks like it wasn't for nothing. Thanks guys.

Darryl G
10-06-2011, 10:11 PM
I had an accountant tell me to apply the "laugh test" to business deductions. If you can put it down without laughing, it's probably ok.