Mower Depreciation...Tax time.

Discussion in 'Lawn Mowing' started by Mowinforaliving, Feb 14, 2008.

  1. Mowinforaliving

    Mowinforaliving LawnSite Bronze Member
    Posts: 1,258

    If 2 mowers were purchased through Yard Card last year, but arent fully paid off, can they be deducted as an expense.? If so, can the full value be deducted or do they have to be depreciated out over a few years? Were talking about a $13,948 machine and a $8,300 machine.
     
  2. Lawnut101

    Lawnut101 LawnSite Silver Member
    Posts: 2,254

    Have you tried talking to an accountant? It seems to me like you could only depreciate or write off what you've paid so far.
     
  3. topchoice

    topchoice LawnSite Member
    Posts: 123

    It is better to depreciate then to deduct...which means you can carry it over about 3 years- that is what my tax lady says. I was in the same boat you are and depreciated my equipment 1/3 this year and will do that over the next 3 years. Now, if you buy a new mower or equipment the following year, you can start deducting for that or start over with total equipment price at that time and deduct. If you have a tax person that does your taxes ask them what the best thing to do would be- I am personally close to my tax lady so she did what is best for the business, my family, and myself. If you are like me, all of the mumble jumble that these tax people tell you doesn't make sense, ask them to put it into stupid terms. Luckily my wife is a business woman and understands all of that 'speech'. Hope this helps!
     
  4. topchoice

    topchoice LawnSite Member
    Posts: 123

    True, but it depends on if you paid through a personal loan or have a 'Credit Card' out for it. I have a loan through the bank that paid for it so technically speaking the equipment is paid for.
     
  5. TOOLSHACK

    TOOLSHACK LawnSite Member
    Posts: 71

    1)Typically, it's best to write off the full purchase price in the year which you bought them. (Section 179)
    2)Over the following years you should be able to write off any interest that the loan 9credit card) is costing you... until the debt is completely paid down.

    However, it would be best to speak with your accountant about the details of your current situation. They may some additional insight that would apply to your specific situation.

    Basically..Section 179 works like this...
    I bought a new F-250 work truck in November 2005. I was able to write off the FULL purchase price on my 2005 calendar year taxes. Since then, I've been able to write off all of the interest and finance charges for each calendar year... and can legally do so until the last payment is made.
    This is a result of the changes to the tax structure back in 2004.. part of the "Bush Tax Cuts"
    Use the tax system to your advantage in ANY way possible!! Because.. until we abolish the IRS (as we currently know it) and enact the Fair Tax..we're all getting screwed and over-taxed!!
     
  6. Lawnut101

    Lawnut101 LawnSite Silver Member
    Posts: 2,254

    Yeah, I see what you mean. But isn't a yard card a credit card? jw
     
  7. topchoice

    topchoice LawnSite Member
    Posts: 123

    I am guessing everyone is told something different every time...it would be best to talk with your accountant if you have one, if not I would find someone. ToolShack is right WE ARE GETTING SCREWED AND OVER TAXED EITHER WAY!!!!
     
  8. greenbaylawns

    greenbaylawns LawnSite Senior Member
    Posts: 564

    Thats what we do. Thats a big write off if you need it
     
  9. topchoice

    topchoice LawnSite Member
    Posts: 123

    Just had to do this since this is my 100th post!!! YA!!!!! I love this site!!!! :usflag::cool2::drinkup:
     
  10. greenbaylawns

    greenbaylawns LawnSite Senior Member
    Posts: 564

    woohoo I'm workin on it
     

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