Do you guys make all that you can?

Discussion in 'Business Operations' started by Vassk1, Feb 10, 2006.

  1. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    What I mean here is do you take every single tax advantage available in order to make as much money as possible? I've read some here are afraid to claim some deductions for a fear of being audited or they are just happy making what they make.

    Uncle Sam is not your friend.

    Any thoughts?
     
  2. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    I've been told by my CPA that certain deductions are big red flags to the IRS.
    One being the use of a home office. He went through the actual deduction I could make and showed how it changed the bottom line. It didn't do squat as far as out of pocket savings. The small amount of savings was not worth the headaches of being audited.

    kc
     
  3. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    Same Here, Home Office, Means Nothing Come Tax Time, I Claim As Much As I Legally Can, Tool, Office Supplies, Phone, Tools, And All The Normal Tax Deductions, But As Far As Heat Bill,electric Bills I Cant Claim.... By The Way Im In Winsted..... Ever Go To Wolf's???
     
  4. Vassk1

    Vassk1 LawnSite Member
    Posts: 49

    I live less than a mile from there. Never been there tho.
     
  5. steve45

    steve45 LawnSite Bronze Member
    Posts: 1,325

    The home office deduction usually isn't worth the effort--or risk. Make sure you take the deductions for depreciation, advertising, fuel, maintenance, supplies, sales tax, insurance, safety equipment, etc.
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    I have a fairly aggressive tax guy used him for 7 years now, never a problem he was with the largest tax firm in Az. and went out on his own he is great. We have got back over 10 K for the last two years but we also have 4 kids at home and take every legal deduction. This guy is the Michael Jordan of tax's he lives and breathes this stuff he teaches and does seminars in the off tax season. I have talked to the Partners at his old firm (family friends) and they said he is very good and walks the line but has always been legal. He repeatedly tells me that I need to have documentation and everything will be fine. I have also heard that everyone that stays in business long enough gets audited. I know it was the case in my last partnership where we had the weakest, wimpiest piece of crap CPA known to man. This guy was always saying the red flag warning stuff and we followed his advise and we still got audited.
     
  7. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

     
  8. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    The risk? Oh, getting audited and the irs seeing that everything was in order????????? ok..........
     
  9. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

     
  10. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    You just don't get it, do you little scotty? I guarantee you have items that should not be deducted. I think you should meet some IRS people and befriend them and get some facts. They will fill you in on the details.
     

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