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"Unique" tax deductions

Discussion in 'Business Operations' started by Mowin4cash, Feb 3, 2001.

  1. zimm4

    zimm4 LawnSite Member
    Posts: 106

    Beck, We also have A roth ira. Remember when you are 65 and older you are in A lower tax bracket. Also you only pay taxes for what you take out. If your careful and plan well your tax hit will be limited.

    Kyle
     
  2. thelawnguy

    thelawnguy LawnSite Silver Member
    Posts: 2,412

    "I wrote off a speeding ticket 2 yrs ago cuz I was on my way home from picking up my new 20 ft. lawn trailer. "

    Was this deduction made on your own or on advice from an accountant? I hope not the latter.

    IRS rules are quite specific, as to fines and penalties due to illegal activities as being ineligible for deduction. But hey, until you are audited, you could deduct MY tickets and who would know, right?
     
  3. Majestic

    Majestic LawnSite Member
    Posts: 42

    Make wife book keeper,office manager,pay her well (employee)offer health benefits(can include family plan) pay her for holidays,give her bonuses on collections,offer IRA but you have to offer this company wide.Periodicly she may remind you that shes the breadwinner,but what the hey.Didnt know about tax refunds on fuel.I once looked into putting a tank at the shop in which you can get out of paying 13 cents off road state tax,but the companies who delivered the fuel bulk were 13 cent higher per gallon so no savings.Any one have an accountat as a relative?
     
  4. Mid Rivers

    Mid Rivers LawnSite Member
    Posts: 209

    Don't forget your Cell phone
     
  5. Stonehenge

    Stonehenge LawnSite Bronze Member
    from Midwest
    Posts: 1,277

    As far as benefits go, I always understood that they only had to be offered to specific classes of employees. For example, if you offer benefits to one corp officer, it had to be offered to all corp officers, but not every employee. Just the officers. If you chose to offer to everyone, fine, but not required.
     
  6. neighborguy

    neighborguy LawnSite Member
    Posts: 187

    Not sure if this is a state deduction or fed, but you can write off one meal per week up to $25.00 with no receipt. If you took an employee to a lunch meeting, but forgot to get a receipt, you can write off half of that ($12.50 per week) all year round. That is $650 a year. Pocket change to some but a decent deduction to others.
     
  7. Majestic

    Majestic LawnSite Member
    Posts: 42

    Hey today you need every deduction you can get $650 OR 6.50 iLL TAKE IT! we all pay plenty in taxes,dont pay any more than you have to.
     
  8. Vandora Lawn & Landscape

    Vandora Lawn & Landscape LawnSite Senior Member
    Posts: 386

    The best write off you can have is the one for an accoutant. They will be able to give you expert advice. I love my accoutant. I could not do business without him.
     
  9. Ocutter

    Ocutter LawnSite Senior Member
    Posts: 314

    The home office rule is that you need to be either renting it or own it. If so calculate th sq. footage as to the whole house. If you home is 2000 s.f. and your office is say 200 then you can deduct 1/10 of all bills heating, elec, etc. at tax time.
     
  10. LoneStarLawn

    LoneStarLawn LawnSite Bronze Member
    Posts: 1,415

    Also you do not meet the requirements for home office deduction if you use the area in question both for business and for personal purposes. Only strictly business ONLY...

    Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements.

    You use it exclusively and regularly for administrative or management activities of your trade or business.
    You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
    So yardsmith you could use it toward fed taxes.

    [Edited by LoneStarLawn on 02-05-2001 at 09:07 PM]
     

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