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tax receipts

Discussion in 'Business Operations' started by adam underwood, May 19, 2005.

  1. adam underwood

    adam underwood LawnSite Member
    Messages: 45

    hey guys.....
    this is my first year full time and i have yet to talk to a CPA about my taxes. for now, i need some advice on how to keep everything organized....how should i sort and keep my receipts? and does anyone know if i can write off things like insurance, repairs, and payments of my truck if it is registered to my personal name but has commercial plates on it,...
    thanks for any and al advice
  2. grass_cuttin_fool

    grass_cuttin_fool LawnSite Gold Member
    Messages: 3,526

    I keep my receipts by mower gas, parts, new equipment purchases and ect, I use paper clips and keep them together and then place them in 1 envelope for each month, sure makes it easy when Jan comes. I also total each category and put it in the envelope also so all i have to do is add the totals in Jan. Im not sure on the truck, I use the standard mileage deduction and Im a solo operator and this system works for me. If you have multiple crews then another type of accounting system may be needed. But trust me I have found out the hard way, that it pays to spend a little time each month then to wait and do 12 months at 1 time
  3. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,670

    Expenses that are ordinary and necessary in carrying out your busniess are deductable. An expense is considered "ordinary" if it is common and accepted practice in the business (fuel, repairs, labor, insurance etc) It is considered "necessary" if it is appropriate in maintaining your business. As far as record keeping practices, generally the IRS has to prove revenue, the taxpayer has to prove expenses. So you'll need documentation (invoices, receipts and the like) An excellent way you to keep up with income and to help the IRS prove revenue is to put money in a bank account, so don't deposit any money that is not business related in your business checking account. Keep a written log of business milage by date, and number of miles. As much as possible, write busniess checks for business expenses. Paying by cash is too hard to prove especially a couple of years down the road when cash register receipts have faded and receipts are misplaced.

    CPA and ex-tax auditor
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

    <marquee loop="infinite" bgcolor="#DDDDDF"><font color="#000000">Have a tax question? Ask our CPA. Click Here </font></marquee>
    Hi adam underwood,

    We have a form that you can submit your question to our CPA if you are interested. Click on the link in the above scrolling box. Maybe they can give you more insight.

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