New Business with tax questions

Discussion in 'Business Operations' started by olzcha0s, Oct 18, 2011.

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  1. olzcha0s

    olzcha0s LawnSite Member
    Posts: 3

    This year I deceided to start a lawn business to supplement my family income. Myself and my wife work full time. I haven't cut much grass but worked full time. I estimate that by the end of the year i will have paid 8k in fed taxes and expect a tax refund of around 4k due to having a child at home.(for the past few year we got about 4k back) But this year I have invested a few thousand dollars between edgers, blowers, 2 trailers, trimmers and mowers. I understand that this stuff can be written off on my taxes due to it being business equipment. how can i figure how much of this stuff can be written off and to what amount. i bought a three thousand dollar mower...can i take that off my taxes and get it back as a refund or how does it work.
     
  2. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,597

    Without trying to overly complicate things, the equipment can usually be deducted the year of purchase. However you my not want to expense your equipment the first year by rather depreciate it in future years thus reducing your future taxable income.
     
  3. 205mx

    205mx LawnSite Silver Member
    Posts: 2,346

    It's not as if you get the $4,000 back. It brings your taxable income down. If you are in a higher bracket- you have a potential to come down
    Posted via Mobile Device
     

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