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03-31-2004, 06:15 AM
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LawnSite Silver Member
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Join Date: Feb 2002
Location: PA
Posts: 2,539
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health ins premiums..tax write off?
My accountant left me a message yesterday asking what my total health ins premiums were for '03. Have not called him back yet but he seems to be inferring that I can write off this as an 'expense'. Duh...I've never included this premium as a write off item...is this a write off I can take?
this year we're getting the ins from my wifes employer as the rates are better than what I can get thru the business
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03-31-2004, 08:30 AM
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LawnSite Fanatic
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Join Date: Aug 2001
Location: Clinton, NJ
Posts: 9,632
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100% of it Gary.
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Actually, I'm a millionaire. I'm only in this for the exercise...yeah sure.
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03-31-2004, 08:46 AM
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LawnSite Member
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Join Date: Jan 2004
Location: Murfreesboro, TN
Posts: 10
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You betcha! I've owned my own business for over 7 years now and have taken it off every year. It is a HUGE deduction for me.
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Eric Payton
Raintree Lawn & Landscape
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03-31-2004, 09:29 AM
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LawnSite Silver Member
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Join Date: Feb 2002
Location: PA
Posts: 2,539
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thanks guys....man I just thought that this was a personal expense that we all just have to absorb...now this is a pleasant surprise...hey Rod....can you say Cha-Ching!!
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03-31-2004, 10:04 AM
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LawnSite Fanatic
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Join Date: Sep 2000
Location: Memphis, TN
Posts: 6,331
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For 2002 it was a 70% writeoff. For 2003 and after it is a 100% writeoff.
If you didn't do this in the past you may want to talk with the accountant about possibly re-filing the previous returns. It could make some $$ differences. Happens all the time.
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03-31-2004, 06:02 PM
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LawnSite Member
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Join Date: Jan 2004
Location: York, PA
Posts: 82
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Gary,
The tax law changed in 04 and you can deduct 100% of your
premium payments. As long as you paid for them from your
business. In other words if the benefits come from your wife's
employer, the premium is not deductible.
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SHE THINKS MY TRACTOR'S SEXY.
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03-31-2004, 11:16 PM
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LawnSite Member
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Join Date: Jan 2004
Location: Bama
Posts: 45
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Yes you can take it as a deduction....100% is correct. I will come off to figure your adjusted gross income.
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03-31-2004, 11:35 PM
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LawnSite Senior Member
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Join Date: Jan 2001
Location: Muskegon, MI
Posts: 845
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The other thing I found out is if the total of all medical (prescription co pay, doctor copay, eyeglasses,contacts, dental, ect ect, other than your insurance premiums, if they account for 7.5% of your yearly income that is a deduction as well.
My dad first informed me of this one, then I heard it on the radio as well. I did not have that last year but with the baby bills this year I surely will.
We have started saving recipts, and I will get reprints next time I go to the doc, the dentist, just in case I am missing any.
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03-31-2004, 11:48 PM
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LawnSite Member
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Join Date: Jan 2004
Location: Bama
Posts: 45
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You can also deduct mileage for trips to and from the doctor....this year is it 12 cents per mile
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04-01-2004, 12:50 AM
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LawnSite Bronze Member
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Join Date: Jan 2004
Location: Washington state, eastsider
Posts: 1,578
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Also if you have life insurance its also deductible.
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KUBOTA/HUSTLER User
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