Tax time coming

Discussion in 'Business Operations' started by formerscrub, Jan 8, 2002.

  1. Russ

    Russ LawnSite Senior Member
    Messages: 540

    Get a CPA. Call him with questions till he get mad at you, then call with more questions. Lesten carefully to his answers. Dont just hear what you want to. Mow grass, landscape do what ever your good at. Let him do your taxes. These guys are great and can save you a ton of money but remember they work for you.
  2. KDJ

    KDJ LawnSite Senior Member
    Messages: 325

  3. marcie

    marcie LawnSite Member
    Messages: 21

    i work for h & r block during the off season so I know your truck expenses are deductable. you will have to have kept great records on your mileage and only business related mileage is deductible. if you are a sole propietor you can do your business taxes along with your regular return using a schedule "c" . if you have more than one truck that you use you will have to use actual expenses and not just mileage. also you will be able to deduct depreciation on truck and equipment, and of course your other operating expenses. be very careful about using the "in home office" it's really only worth it if you rent vs. own your home. if you own your home and use "in home office" will be sorry when you seel your home because then you will have to go back to your tax returns to see how much you deducted and re claim this amount ............ big headache!!
  4. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    get a CPA
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Messages: 1,969

    You must make quarterly payments of estimated tax for federal and most state income based taxes. These payments are due every year on Apr 15, Jun 15, Sep 15, and Jan 15.

    This trick concerns the Jan 15 payment of federal taxes only. For most of us, especially those up north, this payment can be almost half of your annual total, unless you have a busy snow service. You can skip the Jan. 15 payment, as long as you file your taxes and pay all monies due by Jan. 31. I use this every year. Means a big chunk of cash gets interest for two more weeks. The biggest advantage to me though is to get all that paperwork done right away, and be free of it when the new season is ready to start.
  6. bruces

    bruces LawnSite Senior Member
    Messages: 648

    If you use only one vehicle at a time you can use the mileage method on more than one vehicle. If you use the vehicles at the same time, Marcie is correct.

    Example, I have two trucks, but work solo. In this example I could use mileage on each for business portion, since I am just using one at a time.

    If I have two trucks and 2 crews operating, I could not use mileage because obviously I am using more than one at a time.

    It can be confusing, get a tax preparer's advice if you have questions. The best solution and highest deduction can come from different methods in different circumstances.
  7. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    Spend as much as possible to get the best CPA you can afford. Never can go wrong in that area.

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