i need some tax right offs HELP

Discussion in 'Business Operations' started by grass disaster, Nov 3, 2006.

  1. grass disaster

    grass disaster LawnSite Silver Member
    Posts: 2,583

    i'm not going to go into financial detail here but i have turned the corner as far as profit goes...this year

    lawn mowing is my 2nd job. i have a full time job too

    this will be my 3 year in business. the last 2 years i took a loss.

    i bought a used 2001 3/4truck- trailer- couple mowers- some hand held stuff.
    some dep. over 5 years, like the truck and trailer.


    i think i've run out of stuff to buy. i think i'm going to get slammed hard this year from the tax man.

    i have all "newer" equipment and every think is well maintained and running good. i'm not sure buying new stuff just so i can have the right off is the right choice.

    i can't think of anything that will make me more productive????

    not sure it makes sense to spend $1 to save $.025 for new equipment when all my equipment works great.

    any suggestions or opinions on anything i have mentioned?
     
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    Maybe you can invest it and as pre tax stuff ask a finance planner?
     
  3. crab

    crab LawnSite Senior Member
    Posts: 633

    buy a new truck,you sound pretty solid ,if you can make the payments why throw your money to the IRS.
     
  4. POPO4995

    POPO4995 LawnSite Bronze Member
    Posts: 1,206

    Have you included the following write-off's:

    Fuel (truck and equipent)
    All maintenance on truck and equipment
    Work apparel (shirts, hats, etc.)

    Just a few other ideas
     
  5. grass disaster

    grass disaster LawnSite Silver Member
    Posts: 2,583

    yup sure do, also get road tax back for offroad fuel.
     
  6. huh

    huh LawnSite Senior Member
    from Lubbock
    Posts: 251

    have you fully funded your retirement IRAs

    sounds like it may be time for your business to need a "location" to store stuff and dump for a compost pile like that kick ass 10 acre lot out on the lake that does not have restrictions and would be a perfect place for a retirement home

    or the tired little building that someone needs to knock down on the big street that is about to expand with all of the other businesses moving there......you know......your business is paying for investment property that will be sold when you are done mowing and do not have that income coming in
     
  7. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,213

    Do you use a CPA?? If not, find one. They will show you the best route to use to keep your profits in you pocket.
     
  8. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    How about you buy me anohter Dixie Chopper, and give it to me and so you can werite it off for charity :laugh: ...
     
  9. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    yea get a cpa if you have one and are still asking questions then fire him

    its simple since u are already making an attempt to screw over the irs next year dont report so much (accept more cash) or write off anything and everything that doesnt even need to be i dont want to here any ethical bullshit from anyone please

    if your business is run out of your house or if you have a home office for your business you can write off partial or all your mortgage
     
  10. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Several tips and tricks:

    - already been mentioned: get a tax expert / cpa.
    - ALL equipment depreciates, newer stuff even more so. Yes, this is a loss! Yes, the IRS not only allows this but has a formula!
    - Are you paying yourself like an employee? If so, labor is a HUGE deduction!

    1) Use Intuit's Turbotax to do your taxes, that's what I use and it's very comprehensive, it will let you list those purchases you made as capital gains (which is a deduction).
    2) Consider holding all December deposits until January. This won't make night into day, but it's one month that you don't worry about until 2008's taxes, a bit of a last-minute lifesaver it will come back on you thou by then hopefully you learn some more.
    3) Use your home as an office / for business? Figure out the percent of the home being used for this, then all rent / electric / etc is deducted percentage wise (so if you use 10% of your home for the biz, then if the rent is 700 then 70 / month is deducted) <- This is all in Intuit's TurboTax.
    4) As a last resort of sorts, you can 'accelerate' equipment depreciation beyond the IRS standard but it will come back to haunt you in years to come. For example, a $3k mower may depreciate $300 / year as per the IRS, but you can deduct as much as you want (yes UP to the full value), the only problem is: Say you deduct the entire 3k, first you get no more future deductions, second if / when you sell it you will take another hit.

    I'll tell you this much: If you use Turbotax, I doubt you'll take it but so hard.
     

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