Purchasing ?

Discussion in 'Starting a Lawn Care Business' started by True Harbor, May 23, 2006.

  1. True Harbor

    True Harbor LawnSite Member
    Posts: 114

    I bought a lot of my equipment before i had my business account and quickbooks set up out of my personal checking account. Is this going to make it difficult to do taxes and what if I haven't made enough to cover all my expenses can I carry over some it to the next quarter. I guess I should talk to an accountant but was trying to save some money. Thanks.
     
  2. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    I love it when you answer you own question.
    Yes you can deduct it, Yes you will deprecate it. Yes talk to an accountant.

    Read this very carefully- it is the best advice in business. It does not cost you money to use an accountant/lawyer/or any other professional.
    It only costs you money when you don't.
    You are in the business of making grass shorter. They are in the business of making sure you business keeps as much of your money as possible and making sure your business runs as efficient as possible.
     
  3. Mrk'sLawn

    Mrk'sLawn LawnSite Member
    Posts: 133

    I'm only in my first year doing business and already have an appointment this week with a CPA. There are just too many ?'s I have that I wouldn't trust to anyone but a professional in that field.
     
  4. PMLAWN

    PMLAWN LawnSite Gold Member
    Posts: 3,535

    Another way to think about it--
    You are good at cutting grass but what you are really selling is time, for the homeowner to enjoy, or work at what he does that makes better money, or use of that time.
    So in other words-- "buy my service because it is better for me to do what I do and you to do what you do, we both win"

    And the accountant has the same thing to sell to you??? Right?? You = Winner
     
  5. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    You can deduct over 100k a year in equipment purchases without depreciating them, excluding vehicles. I'm pretty sure you have to have profit though and the deduction decreases to a zero profit level. So if you have 10k profit you can only deduct 10k, but you can carry it over to the next year. Saved a bunch of money this year by deducting that way.

    As stated above, get an accountant though. They really don't cost very much and can save you a ton of headaches.
     

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