Tax Question

Discussion in 'Business Operations' started by jaybow, Jan 19, 2012.

  1. jaybow

    jaybow LawnSite Bronze Member
    from Mi
    Posts: 1,083

    Is it possible to claim your garage in any way for use of the business as shop space or for the storage of equipment. My garage space is completely used up pretty much by everything for the business.
     
  2. CLARK LAWN

    CLARK LAWN LawnSite Silver Member
    Posts: 2,526

    yes you can. talk to a CPA and he will explain it to you.
     
  3. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    Yes, and you should be if you are truly using it 100% for business purposes. It is not any different than your home office....what ever % of your home is actually truly used for business only purposes....you should be deducting that % of the home expenses in relations.

    My friend a good CPA Will not cost you more than $600 - and the fact that you are on here asking this tells me that they will more than pay for themselves. Get a CPA and have them cover all aspects of your business as you do taxes this year, it will be a learning process that will better help you understand your true cost of doing business and how to make smarter business choices in relation to expenses.
     
  4. JBlawn

    JBlawn LawnSite Member
    from ohio
    Posts: 196

    Yes also office space. If you dont use 100% of the garage they will just figure out how much you use then calculate the space to the sq. footage of the house then take off accordingly
     
  5. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    Correct - I seriously doubt they will come to your home and measure for you though if they are a good CPA....:) Have your measurements ready for them and let them figure out what is accurate. Also remember if your home is being used as the primary business location when you go grocery shopping and pick up paper towels, T.P, Laundry detergent etc....a percentage of all those cost are also able to be deducted....so highlight those items on the receipt and put away for tax prep. Many many other things a CPA will help you remember too beside what little we have covered here.
     
  6. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

  7. weeze

    weeze LawnSite Fanatic
    Posts: 7,821

    interesting

    Example: An attorney uses the den in his home to write legal briefs or prepare clients’ tax returns. The family also uses the den for recreation. The den is not used exclusively in the attorney’s profession, so a business deduction cannot be claimed for its use.

    so therefore if anything not used in your business is stored in the same garage then it cannot be written off as a deduction. i guess if you wanna write anything off then you better make a room of your house or a garage only for business stuff and nothing else. i use my rooms and garage for everything not just business. a good example is you can't write off your truck if it's also your personal truck. you can write off the mileage driven while working though. if you have a business only truck you can write off that truck and all the maintenance on that truck etc. as well as the mileage.
     
    Last edited: Jan 19, 2012
  8. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    Red Flag does not mean anything if your deductions are accurate however! I would not choose not to take the deduction because it might lead to a increased chance audit if that is true. That would simply be throwing money away. :nono::nono::nono:
     
  9. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    $600 is that the friend for you or any one off the street?

    How much will spending $600 get someone back on their income tax?

    Any body have numbers to show how much this kind of write off gives?
     
  10. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    Not a friend, not a discounted rate, that was roughly my last year cost for my personal and my business returns being prepared. I think actual cost was closer to the 5 mark. That is with me doing some of the leg work however...if you think you are just going to walk in and hand them a years worth of receipts in a wal-mart bag and tell them to account....be prepared to pay for those services.

    How much can it save you? How many deductions have you learned about reading this thread so far? The CPA will help guide you and remind you of deductions that you may have not considered or forgotten about. The will help guide you to success for the next year on what to do better to prepare and further your deductions appropriately.

    If you are doing any kind of volume and doing the taxes yourself, I would say in most cases you are leaving money on the table. The laws change and these guys keep up with them, you and I cut lawns....not the same catagory of information about tax code being delivered to us.
     

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