Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 02-09-2003, 01:53 PM
2 man crew 2 man crew is offline
LawnSite Senior Member
 
Join Date: Jun 2001
Location: Minnesota
Posts: 403
Taxed To Death

I just got done with my taxes for 2002. I owe quit a bit more than I was anticipating. Over $20k I owe. Getting taxed 50% is tough. Is anyone else going through this. Or am I the only moron not cheating the system? Is there something I'm missing.
Reply With Quote
  #2  
Old 02-09-2003, 02:01 PM
Currier Currier is offline
LawnSite Senior Member
 
Join Date: Jan 2000
Location: Fruita, colorado
Posts: 557
Are you incorporated?
Reply With Quote
  #3  
Old 02-09-2003, 02:24 PM
ladibugg ladibugg is offline
LawnSite Member
 
Join Date: May 2001
Location: Oakland Co., Michigan
Posts: 79
Two things I see that someone should question.


I just finished.

1) did you do your own tax work?

20k at the end of the year.

2) did you pay your quarterlies?
__________________
If you want your dreams to come true, don't over sleep.
Reply With Quote
  #4  
Old 02-09-2003, 02:31 PM
bob's Avatar
bob bob is offline
LawnSite Platinum Member
 
Join Date: Dec 1999
Location: DE
Posts: 4,240
How much did you owe for the 2001 year?
__________________
Bob

If you choked a Smurf, what color would it turn?

I'd give my right hand , if I could be ambidextrous!
Reply With Quote
  #5  
Old 02-09-2003, 04:43 PM
DLS1's Avatar
DLS1 DLS1 is offline
LawnSite Bronze Member
 
Join Date: Jun 2002
Location: Kansas City, Mo. area
Posts: 1,620
Why would you imply everyone is cheating the system just because you have a $20,000 tax bill.

You need to see a CPA if you can't find why you owe so much. I hope you are using 'Turbo tax' or 'Taxcut' or some other tax software to do your Federal and state taxes. It is cheap to buy, cuts out math errors, and can find you areas to reduce taxes that you may not have thought of.

Several questions -
1. Like others have mentioned, have you been paying quarterly.
2. Maybe you miscalculated somewhere if you are doing it by hand.
3. Did you forget to include deductions related to employees, vehicle deductions, section 179 equipment deductions,etc.
4. Check your returns for 2001 and see if you missed filling out a certain IRS form for 2002 or maybe you forgot to enter amount(s) for certain IRS forms.

Something doesn't sound right.
Reply With Quote
  #6  
Old 02-09-2003, 04:51 PM
2 man crew 2 man crew is offline
LawnSite Senior Member
 
Join Date: Jun 2001
Location: Minnesota
Posts: 403
Quote:
Originally posted by ladibugg
Two things I see that someone should question.


I just finished.

1) did you do your own tax work?

20k at the end of the year.

2) did you pay your quarterlies?
I have had the same accountant prepare my taxes for the last 6 years.

No I did not pay quarterlies in 2002. I think I will be getting a penalty for that also. I'm sure I will need to pay quarterly from now on.
Quote:
Originally posted by Currier
Are you incorporated?
No I'm still a sole proprietor. My accountant suggested we talk about other options ASAP when the tax season is over.

Quote:
Originally posted by bob
How much did you owe for the 2001 year?
Only a couple grand but I also had a ton of expenses. Also my gross almost doubled from 2001 to 2002
Reply With Quote
  #7  
Old 02-09-2003, 05:03 PM
dougaustreim dougaustreim is offline
LawnSite Senior Member
 
Join Date: Jan 2002
Location: Brookings SD
Posts: 488
Actually, you should be congratulated, because in order to owe that much tax, you obviously made a good profit. Also remember as a sole proprietor, a lot of that is SS tax. While SS may not be the best retirement investment, for a lot of sole props that and thier equity in the business is all they end up having at retiremnt. If you never pay into SS you will never draw much.

Certainly, you could look at sticking the max in an IRA, if you haven't already.

Remember too, if you incorporate etc, your own wages will have the taxes withheld up front, and you'll be paying state unempoloyement on your own wages etc. Often, what you seem to save one one line just comes out on another.

A lot of the guys in this forum, I'm quite sure would be tickled to death to be in your position, at least you made some money, many of the others did not

Doug
Austreim Landscaping
Reply With Quote
  #8  
Old 02-09-2003, 08:25 PM
KenH KenH is offline
LawnSite Bronze Member
 
Join Date: Jun 2002
Location: CT
Posts: 1,622
IMO, that is gross mismanagement to owe that much at the end of the year. One of the services your CPA SHOULD offer, is a bit of consulting. It is your responsibility to track your business dutring the year and adjust payments accordingly. Having that big of a bill due as well as not paying quarterlies sends up red flares, not red flags. You better be careful.
Reply With Quote
  #9  
Old 02-09-2003, 09:21 PM
ksland's Avatar
ksland ksland is offline
LawnSite Senior Member
 
Join Date: Mar 2001
Location: Cape Cod, Ma
Posts: 928
Quote:
Originally posted by KenH
IMO, that is gross mismanagement to owe that much at the end of the year. One of the services your CPA SHOULD offer, is a bit of consulting. It is your responsibility to track your business dutring the year and adjust payments accordingly. Having that big of a bill due as well as not paying quarterlies sends up red flares, not red flags. You better be careful.
Ditto That!
Reply With Quote
  #10  
Old 02-09-2003, 09:49 PM
Lawn DOG Lawn DOG is offline
LawnSite Senior Member
 
Join Date: May 2001
Location: Virginia
Posts: 276
Congratulations

I agree with Doug. Congratulations and welcome to the real world. Taxes suck but a small price to pay to live in this great country. You couldn't do this in Iraq or very many places in this world. I would check into a S Corp. It has saved me thousands but I still pay like everybody else running a ligit business. Hope you pay $40,000 next year .
__________________
Making it the old fashion way.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 02:51 PM.

Page generated in 0.10608 seconds with 7 queries