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How to write off certian types of equipment

Discussion in 'Business Operations' started by ShortCuts, Mar 12, 2001.

  1. ShortCuts

    ShortCuts LawnSite Member
    from Maine
    Messages: 38

    I recently took over the lawn company that I have worked for, for the last 4 years we have already dumped $$$,$$$ into the new business, so far this is what we've picked up:

    1 2001 ford F350 4x4 v10 w/ dumping 12' stake body
    2 26 hp Walker EFI's
    1 exmark turf tracer w/ECS
    2 echo 2601's
    1 redmax eb6200
    1 16hp Billy goat
    1 16' Mason Landscape trailer

    I am just curious how I would go about writing all these new items off? Are the walkers a 5 year write off? I have a feelng that i'm gonna be visiting the H&R Block guys next winter.I'm just trying to get a feel for things. Thanks in advance!
  2. joshua

    joshua LawnSite Bronze Member
    Messages: 1,226

    thats alot of new toys, sounds like it would be fun. personly i would give everything to who does your taxes, some could be a 2 year write off others just one.
  3. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    And, skip the H&R Block dudes....
    Get an accountant that will learn what you do and advise you on related financials.

    OBRYANMAINT LawnSite Senior Member
    Messages: 555

    agree big time with john....get one and then keep him
  5. H&R blocks are the Wal Mart of tax report.

    you need a professionnel and personal service.
  6. Kent Lawns

    Kent Lawns LawnSite Senior Member
    from Midwest
    Messages: 870

    No less than 5 years on any road vehicle under any circumstances. (Most are 7 years)

    Equipment can be written off IN FULL up to $17,500.00 anually (IRS Section 179)

    But certianly go to a CPA who can handle this for you.

  7. bob

    bob LawnSite Platinum Member
    from DE
    Messages: 4,260

    Get a real CPA. That H&R Block guys not going to be around in August , when you have another tax question.
  8. kutnkev

    kutnkev LawnSite Member
    Messages: 44

    before you spend any money now or later, call your local office of the small business admin. and speak to the S.C.O.R.E. advisor. and sign up for the seminars they offer. you will save yourself alot of money and headaches. also do a search and you will find more awwers on tis topic.

    hope this helps..... kevin
  9. thelawnguy

    thelawnguy LawnSite Silver Member
    Messages: 2,411

    For 2000 tax year the limit has increased to 20,000. It generally goes up a token amount each year.
  10. Greenkeepers

    Greenkeepers LawnSite Senior Member
    from NE Ohio
    Messages: 695

    OK the first thing that you need to do is forget about the HR Block guys..

    Your equipment can be DEPRECIATED over 5 years for the bigger equipment. I would take 3 years on the smaller trimmers and blowers.

    The 3 year depreciation is going to accelerate your depreciation expense which will lower your net income.. Now the section 179 expense that everyone was talking about is $20000 for year ended 2000 and $24000 for 2001... You can only use section 179 for propety that you purchased in that year and it can only be used for the amount of income that you have and can't create a loss.

    Hope this helps please email me if you have any other questions.

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