First Year Taxes

Discussion in 'Business Operations' started by IBGreen, Dec 17, 2002.

  1. IBGreen

    IBGreen LawnSite Senior Member
    Posts: 726

    Alright I know that I can deduct all of my equipment and various other things that I have paid for. But, what about the $5,500 mower that I had to finance? Do I get all that $5,500 back and pay it off or do I not get to wright it off until its paid for? And I have heard that in the first year you don't have to pay in if you have spent more than you've made, is this true? I have met with my cpa and asked him every question but these two, but I am meeting him again tommarow to get everything cleared up. THANKS IN ADVANCE GUYS!
     
  2. IBGreen

    IBGreen LawnSite Senior Member
    Posts: 726

    Please help I'm sitting here staring at the screen, I feel like a dip.
     
  3. cajuncutter

    cajuncutter LawnSite Senior Member
    Posts: 626

    All I can say is my CPA wrote it off...intrest and all. Don't ask me how or why. I just drop off all my papers and he does the rest. This is what I pay him for. If your guy really knows what he is doing he possibly can do it. Also I do not know if you mean quarterly or not. I do not pay in. I just pay penalties if there are any to apply. If you mean your first or any other year for that matter if you make less than what you right off then you won't pay in but you better have reserves and be able to explain your lifestyle to the IRS. Also if you make lets say a profit of 2 grand you won't pay in an income tax but one thing you will never get out of is SS tax. You will always pay in social security. Atleast this is what I gather, I am by no means a CPA. Hope this helps.
     
  4. greenman

    greenman LawnSite Addict
    Posts: 1,405

    IB- my suggestion is find a good accountant, thats what I did. I think your financed mower is more like a loan to a bank , because you are paying it off. I would think that it could be claimed as a depreciation every year until its paid off. I will be meeting with my accountant in a couple of weeks or so, because I have several similar questions.
     

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