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nelson279
03-16-2003, 08:32 PM
As a one-man operation, besides equipment, repairs, mileage, home office, etc., uniforms, supplies, what other deductions can be used to lower taxable income that I am overlooking? Are there any loopholes that I'm missing? My tax preparer is supposedly advising me, but I like to be on top of things to make sure I catch what he might forget, if anything.

Lombardi
03-16-2003, 11:14 PM
Buy the book "How To Pay Zero Taxes". It is full of good, legal loopholes that a lot of people never think about. It has been helpful for me.

SummitFarmer
03-18-2003, 11:21 AM
How about getting a CPA??

Scraper
03-18-2003, 04:45 PM
Originally posted by SummitFarmer
How about getting a CPA??

Why don't you read his initial post?

beck
03-18-2003, 05:25 PM
fuel
advertising
office supplies
insurance
professional fees(accountant and or lawyer)

nelson279
03-18-2003, 07:47 PM
Originally posted by SummitFarmer
How about getting a CPA??


I have a CPA but you still should know what he/she is doing with your numbers.
You just never know what they can be missing so is always good to ask I think ;)

Thank you anyway

DLS1
03-19-2003, 09:38 AM
Use the Search button at the top of the page and search for 'deduction'. You should find a lot of threads on the topic.

adamc6
03-20-2003, 02:41 PM
actually, your uniforms are not deductable on taxes because they dont fall under a specialized uniform.... one thing is to keep a mileage log for all your business related driving (estimates, post office, anything) because it's a 36.5 cent per mile deduction. Also any entertainment or meal expences are 50 % deductable.... keep a good record, and good luck...

Adam

Lombardi
03-20-2003, 04:15 PM
Even though I don't classify my company shirts as uniforms, I consider them as an advertising expense, which is deductible. I also sponsor a softball team and deduct the shirts as an advertising expense.
The mileage deduction for 2003 has been changed to .36/mile.

Frosty_03
03-20-2003, 06:18 PM
Make sure you have a good and trustworhty CPA. They know the Law and you should as well be well informed. If you think its legal make sure you check the tax laws so you and your CPA can come to the same loopholes. I would read up on all you can about taxes. Good Luck and God Speed. Do the right thing!!!!:cool:

Mike Bradbury
03-20-2003, 06:35 PM
Originally posted by Scraper
Why don't you read his initial post?

Initial post said "tax preparer". Not the same thing as CPA.

Mike Bradbury
03-20-2003, 06:36 PM
Originally posted by adamc6
actually, your uniforms are not deductable on taxes because they dont fall under a specialized uniform.... one thing is to keep a mileage log for all your business related driving (estimates, post office, anything) because it's a 36.5 cent per mile deduction. Also any entertainment or meal expences are 50 % deductable.... keep a good record, and good luck...

Adam

Normal work time meal expenses are not deductable.

hoyboy
03-20-2003, 10:28 PM
I personally don't like the term "loophole" because it denotes "cheating," as in "oops, I found an error in the tax code and I'm going to exploit it."

There are tax laws that can be advantageous if followed. They are often labeled "loopholes" by those who know they are there, but are jealous that they can't use them.

In general, all income is taxed. The IRS recognizes that certain costs are incurred to generate that revenue, however, and correctly allows those costs to be deducted from the revenue before figuring the tax.

Health insurance for an employee is an expense of an employer associated with producing revenue...it is therefore deductible. Health insurance for an individual is not associated with producing revenue, and therefore is not deductible. It is not a "loophole," but a legitimate expense deduction.

It's amazing the many other legitimate expenses I hear people calling "loopholes." They are not. They are simply costs of doing business that many people may overlook. The space I use in my home, for instance, is a real cost. The fact that my brand new mower I purchased a year ago is worth 75% of it's original value is not a "loophole," but a real cost.

And yes, the DVD player I bought to show training videos is also a legitimate expense.

For the most part, the IRS has stayed away from defining what is "A" business expense and what is "A WISE" business expense. In other words, they will give me a deduction for that DVD player whether it was a wise purchase or not. That policy is good. I am very concerned when the IRS, or any government agency, starts telling me that my money was spent poorly and therefore not a legitimate expense. It is a very slippery slope and one they should avoid and one we should fight tooth and nail. For instance, they have started limiting country club dues, and the infamous "listed items" and "luxury tax items" are ways they have begun to do just that.

I'll get off my soap box now...

Dan Norton
Hoy Landscaping, Inc.

DanaMac
03-20-2003, 10:41 PM
Season tickets to the #1 college hockey team in the nation - Colorado College Tigers!! Advertising. I actually do take sales and counter guys from my supplier as well as other contractors. Only when my wife can't go since she in the Alumn.

Lombardi
03-20-2003, 11:00 PM
Danamac,
That is actually considered an entertainment expense. 50% deductible.

OutdoorCare
04-22-2003, 02:13 AM
I am a tax preparer, and you can deduct a portion of your own personal health insurance premiums if you are not able to get coverage by any other source (i.e. other employment, spouses plan, etc.). The full amount is not deductable, but up to 70% can be.

MOW ED
04-22-2003, 07:23 AM
The computer that you are using right now as well as your internet connection are being used for business purposes.

Just adding my 2 cents to save you 2 cents.;)

Tharrell
04-22-2003, 07:56 AM
How about some good, quality tools?