Year End, Tax Time???????????

Discussion in 'Lawn Mowing' started by Greenkeepers, Oct 31, 2000.

  1. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Posts: 695

    Hey all-

    As you all know the year end is fastly approaching us. I was wondering who is getting all of their stuff in order for the tax returns to be done.

    If your not you need to be at least thinking about it so that it doesn't sneek up and slap you in the face....

    You guys need to see your accountants and see what they need for year end. This let them know that your on the ball and planning earlier will help with getting the ball rolling later.

    I'm an accountant so if anyone wants to bounce some questions off of me, I'll do my best. And I can always look it up.

    Mike
    Greenkeepers
     
  2. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    Mike,
    Good to see an accountant here. I keep pretty good track of the finances over the course of the year with Quicken Home and Business. I am a small solo operation with 25 weekly and extras but the program does everything I need for right now.

    My question is does your state have any exemption or credit on the tax you pay on gasoline for mowing (other than in a motor vehicle that uses the roadways). If so how does it work? I have been meaning to ask my accountant the same question and seeing your post reminded me. Thanks.
     
  3. jaclawn

    jaclawn LawnSite Senior Member
    Posts: 490

    I will generally do a dry run on my taxes on or about Dec. 1. My main season is generally over by then, and the income during the last month is generally not that much, excepting a large snow event.

    This does a few things for me. 1. It lets me have a better idea of what I have to fork over on Apr. 15. Also, if I find that I am in need of some last minute deductions, I can have plenty of time to make some purchases, buy some equipment, make a donation...

    Also, I can plan my purchases of equipment accordingly. If I am planning on purchsing something in the spring, if I see the tax benefot pf buying it the year before, I will. Likewise, I can put off a purchase till after the first if I feel the need.
     
  4. morturf

    morturf LawnSite Senior Member
    from midwest
    Posts: 475

    In smaller businesses you have to think about the limit on writeoffs of purchases in the last 1/4 of the year. The government will not let you buy a large percentage (exactly what I can't remember) of depreciable items in last quarter of the year then take full years worth of depreciation. There is of course section 179 that allows one time deduction up to (last year and correct me if I am wrong) about $18000. But then there is a big consequence if you dispose of the item before a certian time also. These late year big item purchases should be well thought out before just jumping. Like the big boys say, I am not an accountant or lawyer and I do not give tax advice. LMAO, but I did stay at a Holiday Inn Express last night........
     
  5. chrisbolte

    chrisbolte LawnSite Member
    Posts: 135

    Is there any major disadvantage of depricating equipment over time?
     

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