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Old 08-17-2011, 08:59 PM
Jeremiah Dyke Jeremiah Dyke is offline
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Another Tax Question

If you rent a $60 piece of equipment for a $210 job, do you claim all $210 on taxes and write off the $60? Or, do you simply claim $150.00? If the former you will only get back roughly 30% (your tax rate) on the $60.

I assume ethically, granting that you believe in the presupposition that you “should” pay taxes, you should claim all $210, but is this a grey area for many of you?
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Old 08-17-2011, 09:13 PM
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94gt331 94gt331 is offline
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That's an easy answer. Deffinately write off the rental for $60. You can write off anything that is an expense to your income. They probaly gave you a check for 210. so just claim that invoice in full and attach the rental invoice and you can expense that off your tax return at the end of the year or on your quarterly report.
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Old 08-17-2011, 09:20 PM
larryinalabama larryinalabama is offline
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Quote:
Originally Posted by Jeremiah Dyke View Post
If you rent a $60 piece of equipment for a $210 job, do you claim all $210 on taxes and write off the $60? Or, do you simply claim $150.00? If the former you will only get back roughly 30% (your tax rate) on the $60.

I assume ethically, granting that you believe in the presupposition that you “should” pay taxes, you should claim all $210, but is this a grey area for many of you?
Just have the customer pay the rental center directly, saves you a lot pf paper work.

You are only taxed on profits, and if you are new to busineess your social security tax is 2 times as much as it ws working for someoneelse around 16%
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Old 08-19-2011, 06:44 PM
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ffemt1271 ffemt1271 is offline
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you claim the whole $210 as income, But for that job you can write off the $60 for rental, fuel, mileage, labor. etc. you should really have a CPA. i input all of my income and expenses into GROUNDSKEEPER program, and at tax time i print the reports out and take to him and thats that. I mow grass, he does taxes.
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Old 08-20-2011, 12:36 AM
WheatBookkeeping WheatBookkeeping is offline
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As your business begins to take shape, you’ll discover many grey areas but, sorry, this is not one of them. Your bookkeeper will record $210 as revenue for that job and $60 as Equipment Rental Expense. As ffemt1217 mentions, don’t forget to list all your other expenses pertaining to the job and give the info to your bookkeeper.
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