Okay, I will try not to confuse you in the process. So I spent the day yesterday adding up all my expenses and my profit. Basically I want to know how expenses offset the taxes I would have to pay. More specifically, say I bought a piece of equipment for $2000 next week to offset the amount of taxes I would have to pay this year - lets say I am expected to pay $3000 in taxes. How much would that $2000 piece of equipment offset the $3000 in taxes? Would it be substantial enough to justify it? Also, let's just say my profit was $40K for the year. Also, I know "any business expense" will help affect taxes, I just want to know how and by how much. Is there a formula to plug in? The reason I ask is because my friends dad is a contractor and he buys a new truck every year to "offset" the taxes he would already have to pay. So what does that mean for me? Thanks a lot.