Taxes for a first year solo guy

Discussion in 'Business Operations' started by gulfjoe, Dec 28, 2013.

  1. Roger

    Roger LawnSite Fanatic
    Posts: 5,916

    Sorry to confuse the matter. When somebody says it isn't hard, but then says they have done it for weeks, that tells us that the task is taking a long time (read: hard to do). It surely sounded contradictory to me.
     
  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,525

    1st year solo? Depending on variables (like how much equipment/assets you bought and how much you invested to go into business) you will likely no owe any taxes, as most start up business don't show a true profit in years 1-3. they are mostly paying themselves back for the start up costs.

    IT is worth the extra cash to get a CPA to look over ALL your records and fill out your taxes for you... like i said depending on variables, you will likely not owe taxes the first several years (unless you got some really healthy revenue! ine which case what's a little bit o tax?)
     
  3. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,087

    10 years ago before turbo tax and hr was popular I could agree with you. But now there is no real reason for a solo person to have a CPA. Its not rocket science. What you buy for your business you can write off. I do not do the home office write off. That is generally a red flag for the IRS
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  4. gulfjoe

    gulfjoe LawnSite Bronze Member
    Posts: 1,613

    Here's my next question, I financed a lawn mower, it's not paid off yet, can I still write that off.
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  5. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,525

    You can write off the payments

    The CPA doesn't cost much to prepare taxes
    He will often save you more than the cost difference between him and turbo tax... So it's like making money to hire him
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  6. britsteroni

    britsteroni LawnSite Senior Member
    Posts: 334

    A red flag to the IRS? Why would anyone care about red flags if it is a legit deduction?

    Anyone who thinks TurboTax is acceptable for a business owner looking to maximize deductions while trying to keep as much cash in your pocket (read not just buying equipment for the tax write off) really doesn't understand the game and how to play it.

    Not trying to be offensive, but you are giving the OP terrible advice while showing your ignorance (home office deduction).
     
  7. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,087

    Research it. It is one of the most common deductions people mis use which in turn
    Is a chance to be audited. Its not ignorance it's just simply not worth the chance of me being audited for the small write off it is worth
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  8. britsteroni

    britsteroni LawnSite Senior Member
    Posts: 334

    Seriously, you should sit down with a qualified tax professional.

    Yes, you can write off the entire purchase this year, but you will then be making payments in the year(s) to come without receiving any deductions for it.

    Since this is your first year, I'm guessing you won't be showing much positive income from the lawn care gig, so it might make sense to stretch out the write off as you will be able to avoid self employment taxes on the portion you deduct in the future years.

    Good luck!
     
  9. britsteroni

    britsteroni LawnSite Senior Member
    Posts: 334

    So you're willing to leave money on the table because you're scared of a potential audit? If that's the case, only include your income on your tax return because you don't want to be claiming any suspicious deductions. :rolleyes:

    I provide this advice as part of my living. I don't think I need to research anything frankly. You are paying more tax than you need to for no reason. Again, you are a classic example of why the advice you are giving is bad advice.

    The home office deduction is legit and there is no reason you shouldn't set aside a portion of your house for exclusive business use if that is an option.
     
  10. whiffyspark

    whiffyspark LawnSite Fanatic
    Posts: 6,087

    Guess I should have a talk with our advisor. Lol. Hes the one that told us that we shouldn't


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