Home Office. No longer a write off!

Discussion in 'Business Operations' started by Charles, Mar 1, 2019.

  1. OP

    Charles Moderator, Friend, Angel
    Messages: 11,810

    The accountant just didn't differentiate between workers and self employed in the memo sent out. I think they should have added, that if you are self employed, it is business as usual. Read --workers from home won't be able to write off, home office anymore. We are workers!:laugh:
  2. weeze

    weeze Banned
    Messages: 17,196

    i had to pay more in taxes this year. i made about $1000 more gross though.

    what really pisses me off is quarterly taxes are due on april 15th this year at the same time you have to pay the rest of last year's taxes. like anyone in this business has the money to do that right now before the season has even started?

    last year they weren't due for the first quarter until may 15th or later i can't remember the exact date....but it gave you some time to make a little money before having to pay for the first quarter of the next year. it also kept you from having to pay for parts of both years at the same time.

    so now i have to pay $1500 more dollars over what i prepaid in quarterly taxes for last year and then another $1000 on top of that for the first quarter of this year all at the same time. :laugh:

    this is after paying $4200 for a new heat/ac unit back in december. :dizzy:

    basically i paid $2500 total in quarterly taxes last year but i owed $4000 for the year...and now i got to pay another $2500 to make up the difference from last year and pay the first quarter of this year all at the same time. :dizzy:

    part of the reason it's screwed up is because last year i wrote off $3000 for buying a new engine for my backup mower. i didn't do that this year so that's why i have to pay a lot more taxes....so it's not just $1000 more it's $4000 more i made....made 4 grand more but spent that already on a new heat/ac unit. :laugh:
    Last edited: Mar 2, 2019
    RussellB and Charles like this.
  3. TPendagast

    TPendagast LawnSite Fanatic
    Messages: 16,903

    There’s a lot of people who have been talking about the home business changes and how it will cost them more in taxes... i would still look i to what the actual changes are... it sounded from the scuttle butt it was aimed at online/side businesses tho

    Interesting note mechanics traditionally have all there own tools
    That’s going to be a big change for that class of employees
    Charles likes this.
  4. BrendonTW

    BrendonTW LawnSite Bronze Member
    Male, from Oklahoma City
    Messages: 1,084

    Just don’t pay the quarterly estimates. The fee is minimal. Few years ago I owed $17,000 and the fee for not paying quarterly was a few hundred dollars I believe.
    Mark Stark likes this.
  5. weeze

    weeze Banned
    Messages: 17,196

    i did that for years. the fee was like $12 or something. the reason i want to pay quarterly is i hate having to pay that big chunk of money all at once on april 15th.

    when i worked for other people i claimed 0 on my taxes that way i could always get money back at tax time. i hate owing money. i like to stay ahead of the game.

    it will be fine this next year because it will be the correct amount i'm paying quarterly. it's always based off the previous year's taxes. that's where they get the estimates from.

    the goal is to break even and then only have to pay the first quarter of the new year on april 15th.
    Doc8406 likes this.
  6. BrendonTW

    BrendonTW LawnSite Bronze Member
    Male, from Oklahoma City
    Messages: 1,084

    You can pay more than the estimates require if you anticipate higher income.
    Tara Ann and RussellB like this.
  7. Oxmow

    Oxmow LawnSite Bronze Member
    Messages: 1,091

    By claiming 0, why are you giving the government use of your money for a year for free? They are using it to make loans and get interest on it, and you do get it back at the end of the year, but you haven’t made any interest on it! I was told a long time ago by my tax guy that you want to claim what it takes to where you either owe or get back less than 100$ at the end of the year. That way you haven’t given the govt an interest free loan.
    JMK26 likes this.
  8. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 7,350

    Home office has always been a audit trigger. Figured the $25.00 tax savings was less than a audit hassle. Charles, How much does it lower your tax bill?
  9. tonygreek

    tonygreek LawnSite Platinum Member
    Messages: 4,143

    Don't let an urban legend keep you from claiming what's rightfully yours.
  10. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,969

    I’ve never had it trigger an audit and in the event it did, they’d find exactly what I claimed it to be.
    Mark Stark and RussellB like this.

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