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  #1  
Old 11-13-2001, 08:20 AM
bobbygedd bobbygedd is offline
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detailed estimate

bid on a job the way i always do, eight 6-7ft white pine. $$$$$$ well, im doing the job tommorow(wed) , and the customer requested a break down for tax purposes. ive never had to do this. i need to list cost of materials, and then labor separatly. problem is that if i only paid $60 each for the pine, i dont need the customer to know that the cost of pickup, delivery and instalation is $1200. can i do this: since i bought the pine wholesale, can i mark them up to say $120 a peice, then list the remaining expence as pickup delivery, instalation? thanx for any advice
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  #2  
Old 11-13-2001, 08:31 AM
SprinklerGuy SprinklerGuy is offline
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Those types of clients are a PITA! Is it really any of their business? I always feel bad justifying my way of doing business to them. I usually mark the plants or parts up double and do what you said, the rest is labor,delivery,pickup, overhead and profit. I always think they are going to have a fit. So, make sure you get paid first then produce this invoice!!!! Tell them though that this will cause you hardship and you don't like to do it.
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  #3  
Old 11-13-2001, 08:46 AM
bobbygedd bobbygedd is offline
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actually, we have done some work for her in the past, shes no problem. here is the deal: she lives alone, very wealthy, this is a new home($600,000), she needs alot more work done too, ill give her anything she wants, just dont know how to word this one.
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Old 11-13-2001, 09:07 AM
SCL SCL is offline
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This happens all the time on commercial bids for the taxes. Mark up your trees to what they are worth. Doesn't matter what YOU paid. 6' to 7' pines you could take up to $200 if you want. Break the rest out and realize that most people understand that you have a business to run. The ones that P & M about your making money are the ones you'll have problems with the whole time you do the job, even if you low ball.
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Old 11-13-2001, 09:09 AM
kutnkru kutnkru is offline
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Bob what I would do is similar to what Tony suggested. I would mark the trees up to $150 ea. and with 6 trees this tallys you to $900. I would then mark down a $100 delivery fee and label your workmanship at $200.

This will make all your numbers seem appropriate with a modest fee for installation and Im sure she will be glad to have you back.

If they try to request receipts or anything like this just tell them that you have an account with the nursery and you are always billed monthly which consists of multiple jobs and arent able to do it for this reason. Thats why her bill is as a low as it is because you are passing the savings on to her.

Good Luck.
Kris
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  #6  
Old 11-13-2001, 10:10 AM
bobbygedd bobbygedd is offline
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very good idea, im going with it, thanks to all
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  #7  
Old 11-13-2001, 11:51 AM
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Stonehenge Stonehenge is offline
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I think the ideas presented here a great. I have a follow-up question though. If this is a residence, what are the tax ramifications of a breakout of materials and labor?

I'm not aware of any, sounds like just a way to pick apart the bid.
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Old 11-13-2001, 12:03 PM
bobbygedd bobbygedd is offline
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homeowner claims that she just bought the house, and her accountant can write off home improvements
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  #9  
Old 11-13-2001, 01:20 PM
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Stonehenge Stonehenge is offline
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So, which part, materials or labor, doesn't count toward the home improvement?
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  #10  
Old 11-13-2001, 02:30 PM
bruces bruces is offline
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There are absolutely no tax ramifications of the improvements if this is a personal residence until she sells the property, and then only if the gain is over 250k, or 500k if married.

As far as a breakout of materials and labor, it shouldn't matter, the labor is as much a part of the improvement as the materials so the breakout should not matter.

She is either feeding you a line or doesn't have a clue what she is talking about.

Improvements to a residence are never deductible until sale unless it is partially used for business.
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