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Tax question. Does this sound right?

Discussion in 'Business Operations' started by boxoffire, Feb 20, 2005.

  1. boxoffire

    boxoffire LawnSite Member
    Messages: 169

    Just got my taxes for 04 filed and my first year was last year. Anyway, ended up putting more into my company than I made in 3 months so got a decent amount coming to me. She said about my work vehicle though, that she could only give me writeoff on mileage I put on it for work purposes, not maintenance I had done to it in those 3 months since my startup. Does this sound correct? I mean you can only have one or the other, you can't writeoff mileage and maintenance costs? She is the tax lady and looked as if she has probably been doing it for some time now. Anyway she gave a great deal, $125 to do my taxes and $15 to electronically file them for me. I had everything organized for her though on paper and it only took her about 25 minutes to put it all in the computer and out came the numbers.
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Messages: 7,547

    Yes, oddly enough the tax pro is right!!! You can either take the acutal maintenance expences or the milage deduction.
  3. newbomb

    newbomb LawnSite Senior Member
    Messages: 391

    You can either take mileage deduction or expenses. You must Itemize though. You can't have both but I respect you for trying. A good tax person can quickly figure out which is the better deduction for you.

  4. drsogr

    drsogr LawnSite Bronze Member
    Messages: 1,275

    Yeah she is right...but you are very smart to question her. Just because she does your taxes, doesn't mean that she knows everything, we like to think they should though. It is very smart to give yourself some knowledge of the tax process, it will help you become a better business owner.
  5. marko

    marko LawnSite Senior Member
    Messages: 963

    When they give you the 34.5 cents a mile (or what ever it is now), that is an amount that is suppose to take into account the expenses to operate a vehicle (fuel, oil, maint. etc.) Depending on the reliability of your vehicle, you will need to see which is more advantageous for you. She should be able to figure it out for you next year if you keep a list of your expenses, and also have your mileage.
  6. boxoffire

    boxoffire LawnSite Member
    Messages: 169

    10 4 fella's, I appreciate the responses. Figured she knew what she was talking about. I believe the expenses and mileage came out pretty close but I do remember her telling me that I would come out better doing the mileage instead. It gives me a little piece of mind knowing from you folks for sure though. Thanks again.
  7. lqmustang

    lqmustang LawnSite Senior Member
    Messages: 620

    Also keep in mind that once you choose a method, you must stick with it as long as you own that vehicle. You can't do actual expenses one year, and mileage the next. When you replace your vehicle, then you can change the way you expense the truck if needed.

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