Can someone help me with this simple tax question?????

Discussion in 'Business Operations' started by TMGL&L, Oct 1, 2008.

  1. TMGL&L

    TMGL&L LawnSite Member
    Messages: 243

    I know these questions are totally like beginner for some of you out there. If it is plz fill me in here.

    First off, where can I find the categories necessary to organize my deductions correctly...In other words, I want to put my daily expenses from everyday into categories that will fit into a. . . . . Schedule C ? .....:confused: Is this where I can find the categories?

    Advertising, Car and truck expenses, Commissions and fees, Contract labor Insurance, Legal and professional Services, Rent or lease equipment , repairs and maintenance....etc.
    ....I'm guessing these categories are how I should sort my expenses....

    Now I'm looking at a receipt for gloves...What are these deducted as....

    I'm so lost, I know. Any input would be great.

  2. AJ Lawnscapes

    AJ Lawnscapes LawnSite Senior Member
    Messages: 322

    Get an Accountant. Keep all reciepts and file once a year.
  3. TMGL&L

    TMGL&L LawnSite Member
    Messages: 243

    yup, well I have the reciepts part down alright. I must have millions of them.
  4. Turboguy

    Turboguy LawnSite Bronze Member
    Messages: 1,970

    There is also a blank space where you can add catagories. I would list the gloves under "supplies". You could put anything you have to buy under that catagory including gas for your equipment. Anything such as shovels and rakes, string for a trimmer, could be put under that. Repairs might be another catagory you need to add.
  5. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    Go to and go to forms and publications. Print out a schedule c and keep track of your expences according to the form. You dont want to take a box of receipts to an accountant. That would cost a fortune for something you can easily do yourself.
  6. garnersgardening

    garnersgardening LawnSite Member
    Messages: 73

    You could do all of that or purchase a program like Quickbooks. They actually make one for contractors and during the setup it offers this industry. This made it really easy for me because it has it all in the chart of accounts it also gives an option when you are in putting your data for if your not sure to ask accountant so when you print out what your CPA needs it shows that and he sees it. Also and accountant will most likely want to see receipts but if you keep it all organized he may not need them for everything. What I did for that is I have an excel spreadsheet that all receipts go on. I did different pages for things like equipment purchase, fuel, small equipment like gloves, maintenance, ice and gatorade for employees, etc.etc. This will be taken to my CPA as well so hopefully he will not want to see every receipt. A good CPA requires to see the receipts since he is putting his name on the federal form for preparing your taxes he wants to make sure you do not try to get over. That way if you get audited he can represent you. You will need to keep those receipts for several years just incase you do get an audit. Small businesses are 2 times more likely to get audited. If you have any questions please ask. I do not know everything but I do know alot.
  7. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,643

    For starters, follow lawnman scotts advice. You can add a few categories like fertilizer/pesticides, landscaping materials etc., but don't get too extensive. Use the KISS principle and try to fit as much as you can in the categories provided. Don't worry about the "cost of good sold" section on page 2 unless you have large inventory of resale items. Unless you want to jump through hoops, keep your vehicle expenses and equipment expenses segregated. I am a CPA.
  8. mngrassguy

    mngrassguy LawnSite Silver Member
    Messages: 2,167

    Equipment fuel needs it's own catagory. Your accountant can submit a fuel tax refund because your equipment isn't being used on the road.
  9. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,200

    Not sure I agree with this statement. Perhaps this person has a very small biz and does not have the cash or want to pay a high priced accountant to do the tax work. No reason he cannot organize and file his own business taxes. He is just looking for advice.
  10. mngrassguy

    mngrassguy LawnSite Silver Member
    Messages: 2,167

    I'm not so sure about that. Even when my business was small, my accountant found many things that I missed. I ended up getting 2k back after he filed amended returns for the previous years. I paid him $400.00. Good return on investment.

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