PDA

View Full Version : "Unique" tax deductions


Mowin4cash
02-03-2001, 08:15 PM
How about this thread being for "unique" tax deductions and other cool ways to save a buck? I didn't know until recently that you could get back fuel taxes you paid at the pump for equipment fuel. Must be other ways to save money that some folks haven't heard of.

Mike

SlimJim Z71
02-03-2001, 08:59 PM
Well, to the best of my knowledge, you can write off:

1. Truck payments/equipment payments

2. Gas

3. Mileage

4. A certain percentage for using your home as an office

bob
02-03-2001, 09:31 PM
Also a percentage of your computer!

BUSHMASTER
02-03-2001, 10:47 PM
here's a thought .....the food and up keep on your dog....
anti thieft.....i belevie if you park your rig withihn the fenced area with your poch right off ??????????????

GroundKprs
02-03-2001, 11:26 PM
Get state refund and federal credit for fuel tax, on fuel used in off-road equipment. Means here we get 33.4 cents back fo reach gallon.

zimm4
02-04-2001, 11:45 AM
You can also take health insurance off also.
Dont forget any tools and uniforms. fund your ira for a nice deduction. As long as its not a roth ira.

Kevin
02-04-2001, 03:22 PM
My accountant said to be careful about writing off the home as a business, I am trying to sell my house and she said it was best not do it. Also I write off my mileage vs. the truck payments. Dont forget business supplies and postage on invoices, mailings etc. Dues to civic organizations also, like http://www.paturfgrass.org

kutnkru
02-04-2001, 06:02 PM
We have company uniforms that are dry cleaned thru a local outfit. Funny how different clothes from our home often wind up in the wrong hamper.(*wink *wink) It just increase our write off.

Kris

beck
02-04-2001, 10:27 PM
Zimm4

I am just curious as to why you would continue with the traditional IRA and not start a roth IRA. I would rather pay taxes on $2000 worth of income this year as opposed to what it accumulates to in 20...30...40 years from now.

$2000 a year at 8% interest for 45 years (in my case). would equal $90,000 invested and $773,011.23 value at retirement. which would you rather pay taxes on?

yardsmith
02-05-2001, 12:25 AM
1st off, write off 21.95 a month for AOL cuz of LAWNSITE!!! Maybe only a portion.... I wrote off a speeding ticket 2 yrs ago cuz I was on my way home from picking up my new 20 ft. lawn trailer.
I write off 4x4 subscription-(truck upkeep), gatorade on the job (had to argue for this one), but food-no.
At least in my area, I can't write off home office expenses cuz I provide a service business, & that service is provided at their location, not mine.
There's tons of legit stuff that Uncle Sam allows; enjoy it!

zimm4
02-05-2001, 12:35 AM
Beck, We also have A roth ira. Remember when you are 65 and older you are in A lower tax bracket. Also you only pay taxes for what you take out. If your careful and plan well your tax hit will be limited.

Kyle

thelawnguy
02-05-2001, 06:34 AM
"I wrote off a speeding ticket 2 yrs ago cuz I was on my way home from picking up my new 20 ft. lawn trailer. "

Was this deduction made on your own or on advice from an accountant? I hope not the latter.

IRS rules are quite specific, as to fines and penalties due to illegal activities as being ineligible for deduction. But hey, until you are audited, you could deduct MY tickets and who would know, right?

Majestic
02-05-2001, 07:36 AM
Make wife book keeper,office manager,pay her well (employee)offer health benefits(can include family plan) pay her for holidays,give her bonuses on collections,offer IRA but you have to offer this company wide.Periodicly she may remind you that shes the breadwinner,but what the hey.Didnt know about tax refunds on fuel.I once looked into putting a tank at the shop in which you can get out of paying 13 cents off road state tax,but the companies who delivered the fuel bulk were 13 cent higher per gallon so no savings.Any one have an accountat as a relative?

Mid Rivers
02-05-2001, 08:24 AM
Don't forget your Cell phone

Stonehenge
02-05-2001, 08:51 AM
As far as benefits go, I always understood that they only had to be offered to specific classes of employees. For example, if you offer benefits to one corp officer, it had to be offered to all corp officers, but not every employee. Just the officers. If you chose to offer to everyone, fine, but not required.

neighborguy
02-05-2001, 02:57 PM
Not sure if this is a state deduction or fed, but you can write off one meal per week up to $25.00 with no receipt. If you took an employee to a lunch meeting, but forgot to get a receipt, you can write off half of that ($12.50 per week) all year round. That is $650 a year. Pocket change to some but a decent deduction to others.

Majestic
02-05-2001, 05:27 PM
Hey today you need every deduction you can get $650 OR 6.50 iLL TAKE IT! we all pay plenty in taxes,dont pay any more than you have to.

Vandora Lawn & Landscape
02-05-2001, 06:07 PM
The best write off you can have is the one for an accoutant. They will be able to give you expert advice. I love my accoutant. I could not do business without him.

Ocutter
02-05-2001, 07:26 PM
The home office rule is that you need to be either renting it or own it. If so calculate th sq. footage as to the whole house. If you home is 2000 s.f. and your office is say 200 then you can deduct 1/10 of all bills heating, elec, etc. at tax time.

LoneStarLawn
02-05-2001, 09:03 PM
Also you do not meet the requirements for home office deduction if you use the area in question both for business and for personal purposes. Only strictly business ONLY...

Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements.

You use it exclusively and regularly for administrative or management activities of your trade or business.
You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
So yardsmith you could use it toward fed taxes.

[Edited by LoneStarLawn on 02-05-2001 at 09:07 PM]

Kent Lawns
02-06-2001, 10:33 AM
Fuel Tax credit and section 179 your equipment pruchases are the only "unique" tax deductions I know of.

The rest are common sense any CPA would know.

watatrp
02-07-2001, 05:18 AM
Has anyone taken a deduction for a garage at a personal residence used for storing equipment during the mowing season?

Cell phone deductions: My accountant said it couldn't be taken unless you get an itemized printout of all calls made.

Can someone tell me about deducting vehicle payments. My truck is used only about 40% for business and the rest for personal use. Right now I deduct for mileage only.

Richard Martin
02-09-2001, 08:10 AM
Watatrp wrote:

<b><i>Can someone tell me about deducting vehicle payments. My truck is used only about 40% for business and the rest for personal use. Right now I deduct for mileage only.</b></i>

There are 2 types of vehicle deductions.

The first is the one you are using. You can deduct for every mile you use the vehicle for your business.

The second is the expensing method. You add up all of your vehicle expenses for the year and then in your case you can deduct 40% of those expenses.

In either case accurate mileage logs must be kept. The log does not need to show the mileage for every stop. I use these catagories for my mileage logs: The date, mileage at the start of the day, mileage at the end of the day, purpose of trips, total mileage for the day. It would look like this:

Date...Start.....Stop.......Purpose.......Total Miles
5-1-00.23009.....23015......Local Cutting......16
5-2-00.23021.....23151......Trip To Mower.....130
............................Dealer

If you go off of your route to get lunch or a drink then those miles are not deductable. Remember, IRS auditors are trained to look for inconsistances.

[Edited by Richard Martin on 02-09-2001 at 08:13 AM]

thelawnguy
02-09-2001, 09:53 AM
"The date, mileage at the start of the day, mileage at the end of the day, purpose of trips, total mileage for the day. It would look like this:

Date...Start.....Stop.......Purpose.......Total Miles
5-1-00.23009.....23015......Local Cutting......16
5-2-00.23021.....23151......Trip To Mower.....130 "

You need to account for mileage from stop to stop as they will disallow commuting miles, i.e., you cannot deduct the mileage from home to your shop, or from the last job to home (or shop).

Richard Martin
02-11-2001, 09:05 AM
The Lawn Guy wrote:

<b><i>You need to account for mileage from stop to stop as they will disallow commuting miles, i.e., you cannot deduct the mileage from home to your shop, or from the last job to home (or shop).</b></i>

IRS publication 463 states:
---------------------------------------------------------
<b><i>Car expenses.</b></i> You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use.

<b><i>Example.</b></i> You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. You can account for these using a single record of miles driven.
---------------------------------------------------------

The information that I provided was taken directly from the IRS Small Business Resource Guide.

The mileage starts counting as soon as you leave the premises where your business is located and it continues to be counted until you return to the premises where your business is located unless you deviate from your normal routing. Sales calls are handled using the same rules.

The "form" that I provided above was an adaptation of the example that can also be found on the IRS SBRG.

The IRS SBRG can be obtained from the IRS at http://www.irs.gov and it is Publication 3207 Catalog #26757M.

Mike Nelson
02-11-2001, 09:21 AM
It all sounds like a write off to me,but when the man comes knocking!:eek:

GroundKprs
02-11-2001, 10:24 AM
You need to account for mileage from stop to stop as they will disallow commuting miles, i.e., you cannot deduct the mileage from home to your shop, or from the last job to home (or shop).

Above is very correct: if you want to use details, read the whole tax publication (Publ 463), even the examples, and get the requirements for proper recordkeeping as the IRS sees it. Partially following the rules, or using your own interpretation of them can be very expen$ive.

thelawnguy
02-11-2001, 02:15 PM
Richard,

You need to keep reading. The pub later specifically uses examples such as lawn service as to the type of driving which qualifies and what doesnt.

cclllc
02-11-2001, 06:05 PM
Don't forget seminars and trade shows.I write off the louis.ky expo.

lawnman_scott
02-12-2001, 03:12 AM
u can only take the fuel tax credit if you are not taking the fuel off your taxes already, otherwise this would be a double deduction since the tax on fuel is included in the price. u cant switch from taking the actual vehicle expences to taking the milage, otherwise everyone would do this till it gets old then take the mileage. has anyone ever been audited, or evan know anyone who has?

thelawnguy
02-12-2001, 06:17 AM
Thats why you must claim the amount of the fuel tax deduction on line 6.