why not get insurance?

Discussion in '<a href=http://www.plowsite.com target=_blank ?>Sn' started by cowboy, Jan 1, 2001.

  1. cowboy

    cowboy LawnSite Member
    Posts: 84

    Well I got publication 334 small business tax guide from the IRS and I'm trying to figure why a person would not get insurance and make a company if it would make your insurance, truck costs, and plow even tax deductible.

    maybe I'm being stupid and not reading the guide right, but I'm having a hard time figuring out what good it would do not to make an actual business?

    happy holidays
    -Adam
     
  2. Samurai WeedWacker

    Samurai WeedWacker LawnSite Member
    Posts: 93

    Check with your state's Attorney General. Ask if insurance is required by the state for the type of business you are in.
    Tax writeoffs are not a dollar-for-dollar reduction in taxes. They are a reduction of taxable income. For each dollar of tax writeoff you might get 25 cents of actual tax reduction.
     
  3. Vandora Lawn & Landscape

    Vandora Lawn & Landscape LawnSite Senior Member
    Posts: 386

    A tax writeoff for a business works this way. You have your gross sales and then you subtract all your expenses from that. That leaves you with your net income. You pay taxes on that. You do get a dollar for dollar deduction, however, you still pay for it. It's not free.
     

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