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Solo vs employee's

Discussion in 'Lawn Mowing' started by smallstripesnc, Dec 17, 2012.

  1. jrs.landscaping

    jrs.landscaping LawnSite Silver Member
    from Maine
    Posts: 2,715

    I'm curious in your example how it only costs you $40 per day to operate? Maybe it was just an example, but I have to agree with Orangemower you really should sit down and figure out your TRUE operating costs, not trying to tear you down just trying to help :drinkup:
     
  2. weeze

    weeze LawnSite Fanatic
    Posts: 7,798

    you should be keeping receipts for business only trucks and maintenance (not personal trucks) , mower gas, (not truck gas if you claim mileage), oil, mix oil, blades, trimmer line, any lawn equipment purchased, fliters, grease, grease gun, any tools used for your business, blade sharpeners, loppers used to trim shrubs, gloves, earplugs, protective glasses, hats, business only clothing and shoes, tires bought for mowers, tire plugs bought to fix flat tires, tire slime if used, advertisement, licenses, roundup or any fertilizer or anything used, materials used such as mulch and so forth, etc. etc. etc. anything used for your business can be written off.

    you can probably write off gatorade or bottled water maybe your cooler and even ice used on the job but i've never done it. i'm not totally sure about that one. usually i don't buy much though. i just take a big drink with me in the morning and get another at lunch.
     
    Last edited: Jan 7, 2013
  3. ToddH

    ToddH LawnSite Silver Member
    Posts: 2,197

    http://www.irs.gov/publications/p15b/ar02.html#en_US_2012_publink1000193660

    De Minimis (Minimal) Benefits


    You can exclude the value of a de minimis benefit you provide to an employee from the employee's wages. A de minimis benefit is any property or service you provide to an employee that has so little value (taking into account how frequently you provide similar benefits to your employees) that accounting for it would be unreasonable or administratively impracticable. Cash and cash equivalent fringe benefits (for example, use of gift card, charge card, or credit card), no matter how little, are never excludable as a de minimis benefit, except for occasional meal money or transportation fare.

    Examples of de minimis benefits include the following.

    •
    Personal use of an employer-provided cell phone provided primarily for noncompensatory business purposes. See Employer-Provided Cell Phones, later in this section, for details.

    •
    Occasional personal use of a company copying machine if you sufficiently control its use so that at least 85% of its use is for business purposes.

    •
    Holiday gifts, other than cash, with a low fair market value.

    •
    Group-term life insurance payable on the death of an employee's spouse or dependent if the face amount is not more than $2,000.

    •
    Meals. See Meals, later in this section, for details.

    •
    Occasional parties or picnics for employees and their guests.

    •
    Occasional tickets for theater or sporting events.

    •
    Transportation fare. See Transportation (Commuting) Benefits, later in this section, for details.




    Meals


    This section discusses the exclusion rules that apply to de minimis meals and meals on your business premises.





    De Minimis Meals


    You can exclude any occasional meal or meal money you provide to an employee if it has so little value (taking into account how frequently you provide meals to your employees) that accounting for it would be unreasonable or administratively impracticable. The exclusion applies, for example, to the following items.

    •
    Coffee, doughnuts, or soft drinks.

    •
    Occasional meals or meal money provided to enable an employee to work overtime. However, the exclusion does not apply to meal money figured on the basis of hours worked.

    •
    Occasional parties or picnics for employees and their guests.




    This exclusion also applies to meals you provide at an employer-operated eating facility for employees if the annual revenue from the facility equals or exceeds the direct costs of the facility. For this purpose, your revenue from providing a meal is considered equal to the facility's direct operating costs to provide that meal if its value can be excluded from an employee's wages as explained under Meals on Your Business Premises, later.
     
  4. Tunica

    Tunica LawnSite Member
    Posts: 124

    word to the wise and those wiser. When the IRS does audit, you will be surprised what they will say you cant claim without a reciept or should I say you will be surprised at what you thought you could claim. If they see only big ticket items and if this audit person is loving his work the questions start. Before long you'll feel like the first time you went to the principals office "backside burn". I got lucky he explained things to Me. Now as I breath air when working I ask the wind for a receipt.
     
  5. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    EVERYTHING I purchase for my business is paid for by a business credit card. so there is a trail of what was purchased. there are one or 2 things I do use business checks for but it's not like I don't have records of business purchases.

    as for writing stuff off I don't believe I do any of that.

    I give my accountant 3 numbers each year to do my taxes. my total income, my total expenses and any equipment and there dollar amounts. oh and I give him how many work miles I put on my truck.

    that's it. he never sees a list of my actual expenses. the only reason I categorize expenses is for my personal knowledge of how much I'm spending on say fuel or supplies.

    I don't think not having every single receipt is going to hurt me in an audit.
     
  6. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,260

    What did you just say there you don't think you write stuff off just the expenses:laugh: Thats what it means
     
  7. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    dude I have no idea what I do. that's why I have an accountant do it. I just give him what he asks for.

    someone posted about keeping all receipts and organizing them into categories for tax purposes.

    I was just saying my accountant doesn't receive my expenses in categories.

    I give him my gross income, a grand total of all my expenses and the totals and names of any equipment I bought or sold. he has no idea how much I spent on fuel or mulch or office supplies or whatever. if I spent 5 grand total for the year between all that stuff that's the number he gets.

    I have no idea what he does with the numbers I give him that's why I'm paying him instead of doing it myself.
     
  8. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    I always have a small meeting with my accountant each month, to go over and verify the numbers, you can't just turn your business over and say handle it! it's YOUR business not HIS! He could care less what your numbers look like, but he should be pointing out any glaring issue's he sees.
     
  9. Tunica

    Tunica LawnSite Member
    Posts: 124


    Your right thats what you pay him for to figure your monies. BUT trust Me when and if the IRS audits they ask for one thing receipts without them its their discresion on what they will allow. BTW your accountant is held harmless unless he is cooking your figures to lower the tax. I learned that lesson only cost Me 8 grand.
     
  10. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    well I'm sticking with this accountant and the way he does things. he's been my dads accountant for well over 30 years so I trust him. he wasn't just some random accountant I picked out of the sky.

    going over the numbers and verifying things would be a waste of time with me. I only understand and know a few things. that's how much money is going in and how much is going out. beyond giving him my gross income, expenses and equipment for the year I'm clueless.

    like I said I have no idea what he does with any of those numbers. it's all Greek to me.
     

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