Thread: Tax time coming
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Old 01-08-2002, 11:10 PM
bruces bruces is offline
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Join Date: Jun 2001
Location: Independence, MO
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Re: Tax time coming

Quote:
Originally posted by formerscrub
I classify my lawn operation as "part time" employment because I also have a full time job. My question is does anyone else do this and because this is my first time doing taxes for my business can I still take the deductions on my vehicle miles and equipment even though it is part time. Any comments would be greatly appreciated.
The IRS doesn't care whether you work at your business 5 hours a week or 50 hours a week. The same basic rules apply to deductions, etc whether you are full or part time.

As far as vehicle expenses, the portion of mileage related to business use can be deducted. Consult with your tax advisor regarding what is deductible and what is not.

As far a estimated payments, that will depend on tax liability vs. tax withholdings from your wages any your wife's wages (if any). If your withholding is high or your other deductions can offset your business income, you might not need to pay estimates.

You need to get all of your info to your tax preparer so he can tell you where you stand. It could keep you from getting a big shock on April 15th if you made some decent money in the lawn business this year.
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