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  #41  
Old 03-12-2013, 06:35 PM
grandview (2006)'s Avatar
grandview (2006) grandview (2006) is offline
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What you could if your worried about taxes is have your wife take more out of her pay each week to either cover the shortage or help out with a little refund.
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  #42  
Old 03-12-2013, 07:31 PM
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J & D Greens J & D Greens is offline
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Good advice.

That is what we do we just take our tax lady's advice on how much we need to adjust it. It has worked very well so far. But this year I will not be buying anything for the Biz. but like I said lots of personal deductions. I think it would be nice to build up a good Biz nest egg this season if it is at all possible. Thanks for all the Ideas from everyone. I hope that it helps all of us who work in Solo operations as well as bigger ones. I know lawn site has helped me with a wealth of knowledge. I had no experience running a Biz. and learned a lot of things the hard way the first couple years.
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  #43  
Old 03-12-2013, 07:49 PM
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Is this nest egg before or after taxes taken out?
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  #44  
Old 03-12-2013, 07:49 PM
Brunnersltd Brunnersltd is offline
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Taxes

My business is still in the growth stage. We have been around for three years now. I found it was immediately easier to keep my trucks business and my car personal. I have more to deduct that way. I believe that you are only allowed to claim mileage on like three vehicles for business. Anything more you are required to itemize.
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  #45  
Old 03-12-2013, 08:42 PM
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J & D Greens J & D Greens is offline
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The first 4 years we used my personal ford f-150. It was used for both personal and Biz. Its is so much easier to just have one vehicle that all the mileage the biz uses on it. That is why we bought the 85 Ford 4x4 Flat-bed. Since I'm retired and I only run my Biz now. We offered snow clearing to about 12 clients and i wanted a good 4x4 to insure we got there. We will be selling our 2002 2x4 ford super cab in the May. I have purchased a Jeep Cherokee XJ as my personal vehicle. I use it occasionally to pick up parts but not enough to worry about it's mileage, but I will use it as a back-up vehicle if I ever have my 85 ford side lined.

I don't believe their is a limit to how many trucks a Biz can have using mileage. Some big Biz-es have 20-30 crews. I am sure they count all those miles. It is just us little guys that better have all our ducks in a row if you don't want to get in trouble with IRS.
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  #46  
Old 03-12-2013, 09:19 PM
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J & D Greens J & D Greens is offline
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Quote:
Originally Posted by grandview (2006) View Post
Is this nest egg before or after taxes taken out?
After, this year we are starting with about 3 grand after our taxes were done. It sure is nice to know it is there for those bills like the liability insurance, truck and trailer tags postage, even the post office box. And on and on. But this year instead of spending on things I really don't need. See out of the 1/3rd we set aside out of each months gross I would like to build the Biz nest-egg. I feel I can save 3-5 grand through the season if I'm care-ful. After our taxes get done in 2014 we might have another $4 to put into the Biz account from our savings that we set aside just in case, also 1/3 of all we Gross through out the year. We use quick books. my wife also writes everything as a hard copy. We really wish we could figure out a way to print a yearly statement for each client. I have about five that can write off my services and I end up going into word and logging in all the info for them.

I wanted to do this last year but I could not pulled it off. Good habits are hard to start.
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  #47  
Old 03-12-2013, 09:24 PM
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Might be missing something, why are you paying for some of those things with after tax money?
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  #48  
Old 03-12-2013, 11:53 PM
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J & D Greens J & D Greens is offline
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Those are just yearly expenses that the money must be there for. It will be nice to have more than enough get though each month. I am sure you have been there if you started out with no help from anyone as far as funding. After six years of working the Biz on funds from the previous month, it is time to change that.
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  #49  
Old 03-13-2013, 04:34 AM
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Quote:
Originally Posted by J & D Greens View Post
Those are just yearly expenses that the money must be there for. It will be nice to have more than enough get though each month. I am sure you have been there if you started out with no help from anyone as far as funding. After six years of working the Biz on funds from the previous month, it is time to change that.
Things can get tight, but your losing money by paying expenses with after tax month. Those are monthly expenses.
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  #50  
Old 03-13-2013, 12:01 PM
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J & D Greens J & D Greens is offline
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No we don't pay those expense after tax month. I am talking about money that we set aside for two three things. One is to insure we are not short on what we pay in taxes at the end of the year. (in case we did not have enough deductions, set our with holdings in our other incomes right to off set, the money to pay our tax preparer and so on). What is left over becomes a slush fund for both the Biz and the household budgets. We take the money and split it. Half is reinvested Back into the Biz for the following year. It is not their to just pay for those bills I talked about earlier. But it is their to insure we have the money to run the Biz. when things finally get going. The other half we use to get us through the lean months in the winter when I only work if the snow flies (and it really does not snow that much in the Denver metro area).

My biggest problem is that I struggle with buying things for the Biz (I see all that money there ear marked for the Biz. and struggle with wanting to just go shopping for things I want for the biz that I can really get by with out.) I'm sure you know what I am trying to say. You have been probably running your Biz just as long or longer and already know the feeling. You walk into the store to just buy some blades or even your oil. You look around and everywhere you see all the shinny new equipment and it is calling out to you. That brand new 32" Scag walk behind or the Stihl BR500 ur ur ur, The MS250 chainsaw (that I bought two seasons ago only used it on one job! but I got to that one write off LOL). and so on and so on. and you have the means to buy something cash outright. Hey I can write this new piece of equipment off. Such a good feeling too. But you have a perfectly good 32, chainsaw, br200 and back-ups to almost everything I use on a day to day basis. that all work fine. I must break this habit of spending and justifying it with oh it will help with our taxes also. This season I plan on buying on a must need basis.

The cost of running a Biz. that is the title of this thread right?
We all have the same basic expenses that we pay if we are not cheating the system that is part of the basic cost of running a Biz. Some of those bigger bills can be spread out through out the year but we would rather just pay them when they come due and be done with it. Like the insurance. (We have the liability with American Family and the Biz. auto with Allstate it just works out cheaper that way for us. My agents and I always do a review and adjust things a few months before it is due and then we pay it for that 12 month period and don't look back. But the month they are due if I don't be careful I will have to run that month a lot leaner than I should. It will just be so nice to build up a working capital that would grow and grow so that the money is alway there. I have already done that with the Equipment now it is time to do the same in the bank. That is all I am trying to say. I want to change the way we have been doing things to the point that our Biz. has a more solid foundation.

That is why if I hold onto that money as much as possible it would make it so much easier to get through those tight months. And maybe just maybe I will be able to add to it if I keep my spending in check.
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