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Figuring Equipment Tax Write-offs

Discussion in 'Starting a Lawn Care Business' started by Matts Lawns, Nov 22, 2006.

  1. Matts Lawns

    Matts Lawns LawnSite Member
    Messages: 33

    First time doing taxes, how do you write of vehicle/equipment?

    I have a pick up and two Scags that are paid for. I need an amount to deduct for taxes.
    Rate hourly, weekly???
  2. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Messages: 3,526

    Not the answer you are looking for............but that is where a good accountant/tax person comes in to play

  3. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Messages: 1,775

    If they are paid for you cannot deduct for them unless you purchased them these year. If you are looking for deductions due to a lack of business you may want to consider leasing your "owned" equipment back to yourself under another name. It is a fairly simple process and legal.
  4. ed2hess

    ed2hess LawnSite Fanatic
    Messages: 14,453

    So if I start a new business with a bunch of equipment I can't set a value on that equipment and depreciate it a little each year?
  5. skagman2006

    skagman2006 LawnSite Member
    Messages: 12

    i love hearing all this tax talk. my wife is a tax pro(been in the business for over 15 years) you really make me realize how much headache she saves me and money too.i let her read this and there are alot of options and scenerios out there. i'm with the "grass cuttin fool" on this one-seek professional help and you will probably save in the long run - with a good piece of mind.
  6. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Messages: 1,775

    I 110% agree with you. I assumed the guy doesn't have a CPA and wouldn't REALLY make the initial contact with one even after the advise, so I put in 2 cents of knowledge I truly don't have. The fact is that every business needs a CPA. It is much advised to have one before you ever make a purchase towards building the business, but seldom of us do.

    1 answer to tax issues: A tax accountant or (CPA).

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