Making $30k the First Year mmmm.......

[White Gardens]

Originally Posted by Kelly's Landscaping

Second rule on lawn site some of us are honest and do not inflate numbers I happen to be one of them. Our first year we took in just under 70K we made closer to 80K but Nov and Dec money tends to arrive after Jan 1st. And after all that hard work what did my partner and I get to keep drum roll please 7k each.

I can relate. Last year we did 70k in business. After expenses and taking full depreciation on my truck purchase, I only took home 17k.

Now, this year, do to higher gross again, no real depretiatable purchases, I'll be taking home a lot more, and turn around and giving Uncle Sam and the stupid state gov't a large chunk of it.



It's probably going to change our tax status also to where we'll have to pay quarterly estimated taxes also. Bastards!




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[Landscape Poet]

Originally Posted by White Gardens

It's probably going to change our tax status also to where we'll have to pay quarterly estimated taxes also. Bastards!




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I already pay quarterly estimated taxes. Makes it that much more simple as I am already paying/filing quarterly for employee wages. This allows me to ensure that I do not struggle with cash flow at the start of next year as the money has already been paid in and I am not stuck paying a large sum at the end of the year. May not be for everyone but beats the heck out of sending out all that money at once for me.

[herler]

To my understanding the only entity that is allowed to make money in the United States is the government,
they do this by printing it in various locations otherwise known as mints, these are specific and specially designated
presses that are carefully guarded and operated so that only legitimate money hits the street.

Unfortunately what that means for all the rest of us is we have to get our money the old-fashioned way, by earning it.
It is, in fact, against the law for the average citizen to make money.

You can always earn it, but anyone speaking of making money is talking about breaking the law.
It is for that reason I usually feel free to ignore anyone who speaks in such terms, and of course, any claims they make with it.

[White Gardens]

Originally Posted by Landscape Poet

I already pay quarterly estimated taxes. Makes it that much more simple as I am already paying/filing quarterly for employee wages. This allows me to ensure that I do not struggle with cash flow at the start of next year as the money has already been paid in and I am not stuck paying a large sum at the end of the year. May not be for everyone but beats the heck out of sending out all that money at once for me.

That's probably going to be the better way to go next year, especially now that I don't see a whole lot of purchases in the next couple of years. At least hopefully not.


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[White Gardens]

Originally Posted by herler

To my understanding the only entity that is allowed to make money in the United States is the government,
they do this by printing it in various locations otherwise known as mints, these are specific and specially designated
presses that are carefully guarded and operated so that only legitimate money hits the street.

Unfortunately what that means for all the rest of us is we have to get our money the old-fashioned way, by earning it.
It is, in fact, against the law for the average citizen to make money.

You can always earn it, but anyone speaking of making money is talking about breaking the law.
It is for that reason I usually feel free to ignore anyone who speaks in such terms, and of course, any claims they make with it.

Now your just arguing semantics.


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[norsky]

Originally Posted by JB1

#1 rule on lawnsite--don't believe everything you read.

that is definitely the truth!

[kynobi]

Howdy all. Winding down the season here in cincy with wet leaves and had some time to research and post a question for my 1st year earnings relating to taxes. I am figuring on roughly $8,000 gross from 11 commercial/condo properties this year. My cost for equipment and gas figures to be right around $2000. I would greatly appreciate some input or direction where to study up on what I can expect to pay in taxes for my start up year.

[sehitchman]

Originally Posted by kynobi

Howdy all. Winding down the season here in cincy with wet leaves and had some time to research and post a question for my 1st year earnings relating to taxes. I am figuring on roughly $8,000 gross from 11 commercial/condo properties this year. My cost for equipment and gas figures to be right around $2000. I would greatly appreciate some input or direction where to study up on what I can expect to pay in taxes for my start up year.

Net profit of 6k considered income.
$6000
$840.00 SSI at 14% self employment rate
$300.00 ohio income tax at 5%, you also may have a city income tax where you live
$900.00 fed income tax estimated at 15%
Total Tax of $2040.00 on an income of $6000
This is just a quick estimate with very little info!

If this is your only household income, you will likely not owe any fed income tax. I'd also suggest get a mediocre accountant, and you should be able to eliminate any tax on this much income.

[kynobi]

Originally Posted by sehitchman

Net profit of 6k considered income.
$6000
$840.00 SSI at 14% self employment rate
$300.00 ohio income tax at 5%, you also may have a city income tax where you live
$900.00 fed income tax estimated at 15%
Total Tax of $2040.00 on an income of $6000
This is just a quick estimate with very little info!

If this is your only household income, you will likely not owe any fed income tax. I'd also suggest get a mediocre accountant, and you should be able to eliminate any tax on this much income.

Sheesh. Thanks democrats. Anyone wanna buy some used equipment. LOL.
Thanks for the feedback. Truly appreciated.

[Landscape Poet]

Originally Posted by kynobi

Sheesh. Thanks democrats. Anyone wanna buy some used equipment. LOL.
Thanks for the feedback. Truly appreciated.

The estimate above I am sure somewhat accurate but that all is based off if your really figured your profit correctly. A CPA could help you figure all this out and most likely pay for themselves with your newness to all this. A couple things he/she can help you figure out for example, do you operate out of your home, IE is the equipment stored at home, is there a office area used exclusively for billing and customer mgmt issue etc? If so a portion of your home payment, expense associated with the home like insurance on the home, phone bill etc may all be deducted from your income. What about depreciation of your equipment? I have a feeling with your low gross that your profit is not nearly what you think it is and a CPA will be able to help your discover your true cost of doing business as well as save your from paying any more tax than you need too.