Anyone use Turbo Tax premium?

Discussion in 'Business Operations' started by gregp, Jan 20, 2006.

  1. gregp

    gregp LawnSite Member
    from North
    Posts: 11

    I officially started a tractor/landscape bussiness last summer. Now it is tax time. Has anyone used the Turbo Tax programs for there taxes. Do the programs help with the deduction and depreciation issues? I have a regular tax guy but the expense for just a regular return is high, much less with a small bussiness. Turbo Tax premium say it works for the schedule C. I am guessing this will work for me.
     
  2. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    I tthink it was turbo tax premeir and yes I have used it for the past 2 years. I did my taxes manually before but this does make it easier. You still have to know what your doing. I do all my quarterly's, payroll and monthly tax deposits so it is not that big of a deal for me. I think it costs around $70 and well worth it for me. Good luck.
     
  3. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    Yes, I also use it, and it helps a great deal. Its all in interview form, so as long as you know the difference between an office expense and an advertising expense, it will make your taxes a cakewalk for you. It also does 1099's and W-2's for your employee's and sub-contractor's. And it keeps track of all of your amortized items, so the next year you use the program all of your carry-over deductions are automatically entered and all you need to do is enter the new ones. And if you use Quickbooks or Quicken, it will automatically import your data from there.

    Kevin
     
  4. gregp

    gregp LawnSite Member
    from North
    Posts: 11

    Does Turbo Tax help me with the depreciation issues? I purchased a Harley Power Rake and a few other tools. Can deduct there total cost or do i have to depreciate them over time? And if over time , How long. These are a few of the things i am hoping T.T. can answer for me.
     
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    You can scheldule upto 100k a yr. for equipment if you want or put the power rake on a 5 or 7 yr depreciation scheldule. If you take it all this yr you won't be able to depreciate it nexy yr.
     
  6. gregp

    gregp LawnSite Member
    from North
    Posts: 11

    OTL, Thanks for the information. I need all the right offs i can get this year. I will depreciate the tractor but will probably deduct the entire cost of the rake, tiller etc. I belive this is what you said was possible. Certanly not 100k but anything helps. I spoke with a local fellow who does not use turbo tax anymore. He said he needed to know all the rules and regs anyway, TT did not tell him what he could and could not do. He said all the program did was give him a bunch of blanks to fill in without the explanation as to whether his inputs were legal or not. That is why he uses a tax guy now. He assumes the tax guy knows the rule and regs.
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Hey, I left out the most important part scheldule 179 for upto 100k a yr.

    BTW never take accounting or legal advise from people on a green industry forum. :blush: :blush: Your $$$$ ahead to pay a proffesional to set you up right
     
  8. gregp

    gregp LawnSite Member
    from North
    Posts: 11

    My wife thinks we should pay a pro to do our taxes this year. This way things will start out on the right track. Next year we should be able to go it alone. Good advice I think.
     
  9. Mower For Less

    Mower For Less LawnSite Senior Member
    Posts: 823

    TurboTax will ask you for your equipment purchases, and set up a 100% first year deduction or put it on the appropriate amortization (5-7 years) based on the type of equipment and your choice of how you want it depreciated. Entering equipment deductions is very easy, and the program will walk you through it step by step. What kind of things do you want to know if they are legal or not? The IRS has every publication they have on there website available for free download that can help answer any questions you may be unsure of. It does help to have some knowledge of what is normal & usual as far as deductions are concerned, but for 95% or better of all situations I think the software will cover everything you need with no additional knowledge.

    Kevin
     
  10. 6'7 330

    6'7 330 LawnSite Bronze Member
    Posts: 1,823

    Bless your wife everyday--she is a wise woman, get an accountant .
     

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