Taxes?

Discussion in 'Starting a Lawn Care Business' started by bombard16, Aug 3, 2012.

  1. bombard16

    bombard16 LawnSite Member
    Posts: 8

    I currently have a mowing contract with a school I a now starting teaching at as well. The school system says they can no longer do a 1099 for my mowing pay. Tey have said they canut the mowing pay in wit my salary. Which will have taxes taken out and it will now be on my W-2. If I do it like this, can I still claim depreciation on my equipment. It is my largest mowing client so if I drop them I will not make enough to claim full amount of depreciation on my equipment.
     
  2. Johnagain

    Johnagain LawnSite Senior Member
    Posts: 377

    You're a teacher?
     
  3. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,673

    You can claim it as an expense for your job on your personal taxes. Check with your accountant. How is this not a conflict of interest with the board?
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  4. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    This sounds more like a casual agreement with you and the board. Really they don't need to 1099 you if you own your ow company. You bill them and they pay you ,after that it is your responsibly to pay the taxes.
     
  5. JuddsLawnCare

    JuddsLawnCare LawnSite Member
    Posts: 13

    The school is correct. They cannot do both a,W-2 and 1099 to the same social security number. File for a taxpayer identification # (TEIN) for your lawn business. Just go to IRS.gov and fill it out. That should take care of the issue.
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  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    WOW..... be VERY CAREFULL HERE...

    it sounds like you dont have a company ???

    if so, I would advise you to file for one and become LIGIT, VERY FAST....
     
  7. JuddsLawnCare

    JuddsLawnCare LawnSite Member
    Posts: 13

    I would say he is legit based on the fact he said he received a 1099 and took depreciation.
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  8. Sam75

    Sam75 LawnSite Member
    Posts: 30

    You should be able to take the deduction on your mower since you said it was one of you largest accounts. That means you have at least one other account and you are still in business for your self. Also if you are cutting the grass at the school personally you would have to have an fein# you can get that online nowadays and simple to do. But if you hire help to cut the grass at the school and it is a public school you may have to pay your help the prevailing state wage which could be huge in Illinois it is 25.00 an hour roughly. If you have no workers helping you. you would be a sole prop. and just use your ssc and sched c on your income taxes. last but not least. The irs says you have to try to make a profit when you are in business for yourself
     
  9. Sam75

    Sam75 LawnSite Member
    Posts: 30

    Sorry hit the post button by accident. you can always write off equipment when trying to make a profit like starting off a business and you should be can take the whole deduction in one year.
     

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