tax deductions

Discussion in 'Business Operations' started by touhey33, Feb 12, 2006.

  1. touhey33

    touhey33 LawnSite Senior Member
    Posts: 771

    Can you deduct Mulch, and rental equipment, as well as DBA costs, and insurance costs? Im going through my receipts and want to know all that I can deduct. Also I didn't make up a mileage log for my truck, but used it mostly for work. How do I figure out the mileage for it. Can I take a percentage?
     
  2. touhey33

    touhey33 LawnSite Senior Member
    Posts: 771

    Also do you include the tax on the item. For example Grass seed was 28.47, with tax it was 30.18. How much should i claim as an expense.
     
  3. procut

    procut LawnSite Bronze Member
    Posts: 1,853

    You can deduct the items you mentioned. Mileage is deductable, but I THINK it needs to be documented somehow.
     
  4. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,596

    You can deduct any expenses that a ordinary and necessary for operating your business. Simply put an expense is ordinary if its common to your trade or business and necessary if its helps develop and maintain your business. All expenses you mentioned fall well within these categories. You need a log of your truck usage to support its "business use" Of course the percentage is calculated by business miles/total miles. I think if you look hard you'll be able to find the log you forgot you kept.:)

    Roger Segrest, CPA
     
  5. touhey33

    touhey33 LawnSite Senior Member
    Posts: 771

    Oh there that log is, I forget It was still in the truck.
     
  6. dtelawncare

    dtelawncare LawnSite Member
    Posts: 227

    I did not keep a mileage log last year. My accountant told me not to worry about it. I drive my personal use car when the truck is not needed. He did advise me to track the miles this year though.

    I'm sure glad you found that log.
     

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