TAX Tips

Discussion in 'Business Operations' started by Titans Fan, Feb 2, 2005.

  1. Titans Fan

    Titans Fan LawnSite Member
    Posts: 96

    I know to use equipments, parts, labor, fuel, mileage and office supplies as writeoffs.

    Does anybody have any other ideas on tax writeoffs?

    This is my first year to have a buisiness to deal with.
     
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    insurance. truck plates, paper towels..... it gos on and on.
     
  3. traman

    traman LawnSite Senior Member
    Posts: 712

    your computer and all parts related, printer paper ink and so on ,postage stamps also if you own your home the portion you use as an office is a right off so is a % of electric ,water, phone cell phone if you lease your car or truck the whole dame thing is a write off get a good cpa thay will come with a lot more
     
  4. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    Don't forget about the space used for business, such as garage and office. What my accountant does is have me measure the sq ft of spaced used and deduct that from power, mortgage/rent etc.
     
  5. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    We posted at the same time. Don't forget the garage, also you don't have to own the space. Rent is deductible.
     
  6. cantoo

    cantoo LawnSite Silver Member
    Posts: 2,910

    Be creative.
    I write off every single thing I can. Office supplies, tools, parts, fuel for everything including heat for my house (attached shop), truck I drive to work, snacks, water or juice, all paper products, and on and on. Also make sure you claim every single cent you make too. they will not forgive you forgetting some cash income.
     
  7. marko

    marko LawnSite Senior Member
    Posts: 963

    Someone in another similar thread stated that gasoline used off road (lawn equipment) received a 30% credit. I did not know about that one.
     
  8. northmichigan

    northmichigan LawnSite Member
    Posts: 133

    wadr. here in the usa we can't deduct any snacks or drinks.remember to deduct all your cell phone expenses.
    if you really want to get some profitable deductions plan for them. if you have a low cost truck for several years go with the mileage deduction instead of the itemized deduction. for example say a 2500 truck with 1500 a year in gas and repairs for five years equals 10,000 total investment. every year you deduct 10,000 miles at say 35 cents a mile thats 3500 times 5 equals 17500.that means you deducted 7,500 over your actual cost. milage changes yearly but the idea is look at the long term to plan for deductions that will benefit your situation. this is what i learned being a h&r blockhead for two winters.
    mj
     
  9. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,405

    find a good accountant and let them help you with a solid tax "avoidance" strategy. avoidance is quite different than evasion, btw. :) a good accountant can probably find ways to save you a couple thousand in taxes by planning correctly.

    as for claiming home-based space, be sure that the space is 100% dedicated to your business or an audit can turn a bit punitive.
     
  10. northmichigan

    northmichigan LawnSite Member
    Posts: 133

    good points tony; the way to pay taxes is to think about the years end and where you need to be terms of equipment and cash available.
     

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