Lawn business and taxes

Discussion in 'Business Operations' started by jaymo3141, Sep 27, 2013.

  1. JFGLN

    JFGLN LawnSite Senior Member
    Posts: 942

    Don't forget the 15% for self employment tax. You should be setting aside 30% for taxes.
     
  2. windflower

    windflower LawnSite Bronze Member
    Posts: 1,080

    SE tax can be offset by numerous credits a broke student is likely eligilible for. I doubt with the income stated he has much liability to state or federal.
     
  3. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Posts: 582

    Do you really have to keep receipts?

    I've been told by people in the business your bank statements are all you need unless you pay cash for something which you would need a receipt to write off.
    Posted via Mobile Device
     
  4. Roger

    Roger LawnSite Fanatic
    Posts: 5,919

    You are right, I was wrong. I did more checking, and confirmed that CA is a bracketed system, not the straight 12% as I suggested.

    Not only is it a bracketed system (with typically higher rates on the lower end than most states that do have an income tax), but includes an uptick on rates for those in high income ranges. One has to be over the $1M mark for the 9.3% "standard" bracket to be in effect, but also a 3% uptick, making the top range 12.3%. Prop 30 was sold as a "tax on the rich" but it successfully dragged in everybody, including those in lower income ranges.

    Good catch,... thanks.
     
  5. Charles

    Charles Moderator Staff Member
    Posts: 7,866

    I don't think I would mention "under the table " to the IRS:laugh:
     
  6. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 940

    Holy Mary, you better have a receipt for EVERY PENNY.
     
  7. gulfjoe

    gulfjoe LawnSite Bronze Member
    Posts: 1,626

    I keep my recipets, but why isn't a bank statement good enough for the IRS or anyone else for that matter.
    Posted via Mobile Device
     
  8. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 940

    Hire a CPA, most will tell you over the phone now what is needed in the Spring. Don't take my word for it. Call one up on Monday morning.
     
  9. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,544

    Can I claim my dog as a dependent?
    Posted via Mobile Device
     
  10. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,415

    Yes, but only if it's fulltime.
    Posted via Mobile Device
     

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