Estimates as a business expense?

Discussion in 'Business Operations' started by General Landscaping, Oct 3, 2006.

  1. General Landscaping

    General Landscaping LawnSite Senior Member
    Posts: 802

    When doing estimates, is there a way to "write off' the time/expense from your income?

    In a larger company that has an estimator; I'm sure that employee's wages, vehicle, etc are taken off the income total. Why not a solo operator?

    Maybe "charge" for estimates and write off as uncollected debts?
    Keep a log of time used doing dead-end estimates and put it into advertising costs?

    Anybody got a system that is legal and works?
     
  2. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    it is overhead.. which IS deductable.
     
  3. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    Thats about the size of it...ANY expense you shell out in order to run your business IS tax deductable...Just has to be business related...
     
  4. MarkintheGarden

    MarkintheGarden LawnSite Bronze Member
    Posts: 1,072

    When you say it is deductable overhead, are you saying you can file it as a business expense on my schedule C?

    For example if I spend 200 hours preparing estimates and meeting with prospective customers, I could claim that as a cost? Could I just claim that my time is worth x amount of dollars and multiply that by 200?

    To be sure if I paid someone else to do it their pay would be a deduction
     
  5. Billz

    Billz LawnSite Member
    Posts: 181

    yep, but then that money would have to be claimed as income to you, and actually paid...I believe.
     
  6. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    yes, it is a business expense.

    from the sound of what you have said, i assume you are paid a salary from your business. You cannot deduct YOUR time seperately from doing estimates if your salary is accounted for in the general overhead somewhere.
    That is double dipping.
     
  7. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    NO double dipping!!!:nono:

    At least thats what my wife tells me...:laugh:
     

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