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showing a profit

Discussion in 'Business Operations' started by grass disaster, Feb 3, 2005.

  1. grass disaster

    grass disaster LawnSite Silver Member
    Messages: 2,753

    can i get buy with showing a loss for more than three years especially since i am part time. i'm thinking of showing a profit on my 5th- 6th year.

    i mean the way i keep spending money i don't know where it all goes

    i have my full time job to support my lawn service. i mean last year i bought a 20,000 truck. this year i'm planning on buying a 5500 walk behind a 6,000 enclosed probably about 1,000 in hand blowers/hedge trimmers/trimmers.
    -let alone all my other expenses*

    i'm just pulling the money out of the personal checking to par for it.

    lots of deduction.
  2. tonygreek

    tonygreek LawnSite Gold Member
    Messages: 3,864

    you can do it, you just need to be able to demonstrate that you are trying to be profitable (there's a thread going on this page related to this topic with some good insight from mmlawn). just make sure you are keeping amazing records as you will likely show up on the auditor's radar.

    i would also recommend getting with an accountant, if only for a couple of hours to keep you straight. you can carry losses forward to offset gains to get to even, but depending upon your structure (i'll assume you're a sole proprietor), be sure to properly account for your loans/investment into the company and any credit card interest you might rack up. a lot of people overlook the credit card interest as an expense. equipment deductions are another strategy to figure.


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