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How do you guys pay for fuel???

Discussion in 'Lawn Mowing' started by chrisk, May 21, 2002.

  1. chrisk

    chrisk LawnSite Member
    Messages: 35

    This maybe another dumb question but here it goes.

    I have been using cash to pay for my fuel in the truck and mowers and 2cycle stuff.

    My father made a suggestion that I should keep as much cash as possible (not report it) and use a check card or credit card for any purchases.

    Therefore only being taxed on what I put in the bank and having credit card reciepts for deductions.

    What do you guys do????????

    Thanks again!!!!!!!!!!!!!!!!!!!
    I am learning so much from you great people!!!!!!!1
  2. SIG

    SIG LawnSite Member
    Messages: 188

    Your Father is a smart man. I use an exxonmobil card that way I can see all the purchases and it's easier at tax time. Always keep your cash in your pocket.
  3. TLS

    TLS LawnSite Fanatic
    Messages: 7,943

    Seperate CC for mower gas, Seperate card for truck gas.

    Save reciepts, and calculate gallons of gas used over past year, and deduct federal road tax for your mower gas.

    Truck gas is deductable as a vehicle expense.

    Thats why were in business.....To write off business expenses!!!
  4. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    Lemme see if I got this right.....

    Your father is actually advising you to keep any cash you get and not report it - as you are legally obligated to do?? Have I got that right?? Hmmmm.......... And, you're posting that here for a whole LOT of people to see???

    Receipts are legal methods of substantiating expenses, whether they are from a credit card or a receipt from the station manager. However, in an audit the auditor needs to believe that the receipt if for fuel that got used in the business.....

    I may be wrong, and I often am... but it seems to me that if you get caught not reporting earned revenue, but still keep deducting expenses - your credibility just might be suspect.

    Now, I'm certain that more than a few people posting here have 'forgotten' to report some cash they were given, but I seriously doubt that they would post the "evidence" of tax fraud on line here.

    And for those few that might wonder - we report all income, cash or no, as we can't afford the problems that come from irritated revenuer's if they can prove that........;)
  5. Russo

    Russo LawnSite Senior Member
    Messages: 287

    1. You WANT to show that you're paying for fuel. It is an expense.

    2. You don't need to use a credit card or check card to get a receipt.

    3. There are many LEGITIMATE ways to minimize your tax burden. Pay your fair share.

    4. You don't pay taxes on what you put in the bank. You pay taxes on your profit. Keep accurate records of everything.

    I may be taking you too literally or misunderstood something?
    But I pay cash for everything ( or check card ) and get receipts.

    There's no dumb questions, only dumb people who won't ask.
  6. chrisk

    chrisk LawnSite Member
    Messages: 35

    Thanks guys,,,,,

    I know what to do now!!!!!!!!!!!!!
  7. LawnLad

    LawnLad LawnSite Senior Member
    Messages: 738

    ChrisK - if you're asking this about gas purchases... what else are you buying and not getting get a receipt for? Anytime you buy something for the business, the cost of that item is fully deductible. Some things excluded (food, entertainment, etc.). It's the difference of using pretax dollars versus post tax dollars.
  8. I use a gas co credit card. That way I have a statement to check against receipts.
  9. Pro-Cut Lawns

    Pro-Cut Lawns LawnSite Member
    Messages: 71

    I pay cash and get a receipt. The station I buy gas doesnt mind writing out a receipt. As a matter of fact, they now have it written out by the time I walk in for the pumps. Same with everything as Lawnlad said. Keep all receipts for anything related to your business. I bought chain and eyebolts to put safety chains on my trailer drop gate this weekend, and kept the receipts. It all adds up in a hurry!!
  10. yardmonkey

    yardmonkey LawnSite Senior Member
    Messages: 341

    I haven't been that inteested in the details of the accounting so far. I keep everything very simple and I have an accountant who does my taxes for me. As I understand it, you can EITHER deduct all your vehicle gas and repair expenses OR take a standard deduction based on the mileage. So far it has been better for me to take the mileage. Consequently, I have been very lazy about getting receipts for gas. For some reason, they never give those unless you ask. Probably I should be paying more attention to that, but so far it hasn't mattered, as long as I keep track of business mileage.

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