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  #21  
Old 03-15-2011, 09:32 PM
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meets1 meets1 is offline
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After re-reading this post what is everyone so scarced for? Every other post says RED FLAG - if biz is legit you do what you can, basically re-investing with in yourself.

I suppose you guys who buy $50-$60K trucks don't depreciate the truck out or itemize fuel, tire repair, etc. Cuz if you haul that boat to the lake and the IRS see's this you'll be red flagged.
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  #22  
Old 03-15-2011, 09:48 PM
New2TheGreenIndustry New2TheGreenIndustry is online now
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Quote:
Originally Posted by TMlawncare View Post
If you build or have a new facility built for your company, its tax deductible. When the local contruction company builds a new headquarters they depreciate it. When Walmart spends several million on a new store, they depreciate it. When Walgreen adds a new store, the depreciate it. When the local dentist has a new office built for 700k do you think they don't claim this massive investment on their taxes? If you have a legit business and you build a facility just for your business, its a business expense. There is no red flag if the facility is used only for business purpose.
I believe red flag is it is owned by you personally. Everything you just mentioned would be considered an asset of those companies.
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  #23  
Old 03-16-2011, 12:16 AM
TMlawncare TMlawncare is offline
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Originally Posted by New2TheGreenIndustry View Post
I believe red flag is it is owned by you personally. Everything you just mentioned would be considered an asset of those companies.

You don't think the dentist office is owned by the dentist. You don't think the construction companies new facility is not owned by the owner. Here in town a roofing company just purchased 3 acres and built a 60 X 125 foot new building on it for his company. You don't think he can claim this $400k expenditure as a business expense even though its his new company building? Are you kidding me. This is basic business 101. If it is an expense related to the operation of the business you can claim it.
Don't you own a company? Does you company have assets. Do you have trucks, mowers, trimmers, skid steers, tractors, trailers, etc? Those are all assets owned by the company. You own the company. Do you claim any of those on your taxes? They are assets after all owned by the owner.
You see an asset is an asset as long as it is vital to the operation of the business. Why do you think we can write off our work boots as a business expense?
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Last edited by TMlawncare; 03-16-2011 at 12:24 AM.
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  #24  
Old 03-16-2011, 12:58 AM
TMlawncare TMlawncare is offline
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After a little more thought (little research) I think that maybe I am wrong. The problem is that property had a unique trait. It does not depreciate like other assets, therefore is not an expense. Now you can deduct the interest because that is money that you can't get back. Any money paid in on the principle can not be counted as a business expense.
Personally we still rent our facility so I have not be down that road of purchasing. Learn something everyday.
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  #25  
Old 03-16-2011, 03:16 AM
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P.Services P.Services is online now
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TM, you get a ataboy from me. Takes a big man to chew some one out and then come back and say maybe I was wrong. I woulda just left the thread and never came back before I admitted I was wrong. Ataboy!!!
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  #26  
Old 03-16-2011, 01:44 PM
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GreenI.A. GreenI.A. is offline
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TM - the differnce is that he personlly owns the property. It is not in the companies name. Sam Walton does not personally own the walmart building, Walmart Stores inc owns them, that is the difference. When you own a company (llc, corp, ec...) it is seperate from you personally, doing things that intertwine the two is a red flag. For example if you try to claim a portion of your home's value as a business expense because you have a home based office. It's a red flag because the IRS knows that many people will also use this room for other things such as allowing the kids to do homework in there. Or a home shop may double as a spot to change the oil in the family car. hese are just a few of the things they look for. They get alot more advanced than that i know the MA Dept of Revenue is tied into all the state agencies, you register a boat, ATV, dirtbike, any vehicles, they instantly know and if your registered vehicles add up to over a certain percentage of your income - your red flagged. My accountant had warned me alot about checking everything twice, even 3 times. With these new tax regulations the IRS is going to be looking for reasons to get their foot in the door for audits because they know theres a good chance of finding something they can nail people for
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  #27  
Old 03-16-2011, 08:28 PM
New2TheGreenIndustry New2TheGreenIndustry is online now
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Originally Posted by GreenIndustryAssociates View Post
TM - the differnce is that he personlly owns the property. It is not in the companies name. Sam Walton does not personally own the walmart building, Walmart Stores inc owns them, that is the difference. When you own a company (llc, corp, ec...) it is seperate from you personally, doing things that intertwine the two is a red flag. For example if you try to claim a portion of your home's value as a business expense because you have a home based office. It's a red flag because the IRS knows that many people will also use this room for other things such as allowing the kids to do homework in there. Or a home shop may double as a spot to change the oil in the family car. hese are just a few of the things they look for. They get alot more advanced than that i know the MA Dept of Revenue is tied into all the state agencies, you register a boat, ATV, dirtbike, any vehicles, they instantly know and if your registered vehicles add up to over a certain percentage of your income - your red flagged. My accountant had warned me alot about checking everything twice, even 3 times. With these new tax regulations the IRS is going to be looking for reasons to get their foot in the door for audits because they know theres a good chance of finding something they can nail people for
Well said.
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  #28  
Old 03-16-2011, 09:02 PM
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meets1 meets1 is offline
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That may be true but heck if you change oil in your wife's car, you (business) charge you (the family) $10.00 to change oil. Sure a little money out of your left pocket into the right pocket. Then explain how farmers can right about all there expenses off in one year, depreicate out the 100 x 100 shop all while storing there boat, 5th wheel, and whatever else toys they have or son has or whatever.

There is a famer in my area that built a big a*& steel shop to the tune of 1.35 million dollars. His board room table sits 24 men. A kitchen like no other. A bathroom than 99% of women would kill for. 100% right off. Says he'll do over a couple years.
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  #29  
Old 03-16-2011, 10:27 PM
TMlawncare TMlawncare is offline
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Originally Posted by P.Services View Post
TM, you get a ataboy from me. Takes a big man to chew some one out and then come back and say maybe I was wrong. I woulda just left the thread and never came back before I admitted I was wrong. Ataboy!!!
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Sometimes when you are just flat wrong, you have to take it on the chin. We lease our shop so we can deduct our payments. Its an expense but if you buy its an asset that does not depreciate. I just was not thinking about it the right way.
Thats one thing you can count on about lawnsite, it you are just plain wrong someone will straighten you out. Thanks guys.
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  #30  
Old 03-17-2011, 10:59 AM
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snomaha snomaha is offline
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Quote:
Originally Posted by TMlawncare View Post
Sometimes when you are just flat wrong, you have to take it on the chin. We lease our shop so we can deduct our payments. Its an expense but if you buy its an asset that does not depreciate. I just was not thinking about it the right way.
Thats one thing you can count on about lawnsite, it you are just plain wrong someone will straighten you out. Thanks guys.
The value of the buiding (land excluded) can be depreciated over 39 years.

Set up a comapny that holds the real estae and lease back to your business.
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