Discussion in 'Starting a Lawn Care Business' started by sgl41377, Jul 20, 2004.

  1. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    How does someone learn the ropes of what can be deducted? I have been told that you can deduct part of your house if it is used for the business. What is the best way to deduct for the vehicle used to tow my landscape trailer? How do you expense things that you have bought in the past and do not have receipts for? Is a CPA really necessary for someone earning less than $5000.00 per year? How much does it cost to speak to a CPA?
    Any help would be great.
  2. EastProLawn

    EastProLawn LawnSite Bronze Member
    Posts: 1,110

    How about one question at a time. How about slowing down, How about searching some of the prevoius threads. How about talking to some local guys around your area.

    HOOLIE LawnSite Gold Member
    Posts: 3,981


    Go and buy the Ernst & Young Tax Guide at your favorite local bookstore. It will answer a lot of your questions regarding deductability (is that a word?)

    -For vehicle, you can claim mileage, or deduct the costs of running and maintaining said vehicle.

    -I don't believe you can deduct things that you bought in the past that you use now. They were not bought for your business. Check with a CPA.

    -A lot of CPA's will give you a free initial consultation, call a few in your area.

    -The house thing, if you use an area of your house for business purposes only, you can deduct some extra on your taxes. For example, my tiny work office comprises 4% of my homes total area, so that's the percentage I plug into the appropriate spaces on the tax worksheet.

    -Trips to Starbucks are deductable, provided you at least spend some time thinking about work while you sip your Cafe Latte'
  4. beransfixitinc

    beransfixitinc LawnSite Senior Member
    Posts: 592

    Or thinking about how you don't want to have to go back to work... does that qualify as thinking about work?
  5. MJD75

    MJD75 LawnSite Member
    Posts: 59

    It's well worth the little bit of money to talk to an accountant, who can help you deduct alot, to save money
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi sgl41377,

    Collect up all your accounting questions and then contact a CPA. It's just a simple call to find out how much it will cost you to sit down and ask your questions. You will be much better off, starting on the right foot.

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    Sounds good to me- reminds me of a story I heard once about someone who was suing their lawyer for overbilling. The judge asked the lawyer how he could bill someone for 28 hours on one day, when their are only 24 hours in a day. The lawyer replied "Billing time is not always the same as real time"

    If you're thinking about work while you mow someones lawn, can you bill for the lawn AND the thinking process?

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