How to claim on Taxes?

Discussion in 'Business Operations' started by wifewquestions, Oct 20, 2010.

  1. wifewquestions

    wifewquestions LawnSite Member
    Posts: 1

    I do all of our taxes myself. My husband has just started mowing and does not have a "company", but does have a name. He's probably only made $2000 this year and bought his mower for double that. My question is, how in the world do you file this on your taxes without a business name?
    Can it just be somewhere under extra income and how can we do that and still write off for the mower? Thanks.
     
  2. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

    the irs doesnt care if you have the proper bus lis. take the difference between income and expenses, youll have a loss or profit and you can calculate that towards your income. I would suggest consulting an accountant though as well as becoming a "real' company
     
  3. gasracer

    gasracer LawnSite Bronze Member
    Posts: 1,049

    Check with your local and state CPA's. Every state is different and laws change every year. I know that you just take what you made(make sure you have records in case the IRS pays you a visit) and subtract what you spent(keep every receipt) . You can take equipment all at once or over 5 years.As long as you are a sole proprietor it isn't a big deal.
     
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,916

    "Name" isn't the issue, but rather how you have chosen to operate the business. You must have chosen to be sole proprietor.

    If none of this makes sense, then you need to work with a CPA. You may have a long list of expenses that qualify for deductions, ones that you don't understand and are unable to take advantage. A good CPA is worth the cost in terms of knowing how to best establish your business, deductions, etc. The average person is unable to understand enough about the tax codes to navigate those waters.
     
  5. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,164

    What he said.
     
  6. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    I will go out on a limb and say he is a sole prop. Fill out schedule c, and se with your 1040. Think about getting what you need locally to be better set for ext year. Thr IRS isnt concerned with name or anything like that as long as they get their cut.
     
  7. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    DONT DO IT...

    Leave it alone. he has NOT been charging tax on the work he has preformed. so they would come back at him for that. get ligit next year. by trying to claim this mower you would cost yourself thousands.
     
  8. if all I made was $2000 dollars , I would not do it and forget about it.
     
  9. gasracer

    gasracer LawnSite Bronze Member
    Posts: 1,049

    As long as you make a invoice on all your work and pay taxes on that amount. You add your taxes into what you charge knowing you will have to pay them.I record all check numbers and keep deposit tickets.The IRS doesn't care if you charge taxes but you just have to pay them.
    You can deduct the mower,mileage,repairs,fuel for the mowers all off your taxes. Since you didn't make much you can file as a lose for the year.
    You can risk not filing taxes but if you ever get audited they will pick your life apart.....
    Before you ask this is Per my accountant.
     
    Last edited: Oct 23, 2010
  10. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    were did she say he wasnt charging tax? andhow do you know that it is even required were they live?
     

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