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Tax Write-Offs

Discussion in 'Starting a Lawn Care Business' started by cibula11, Aug 27, 2011.

  1. kinnaird007

    kinnaird007 LawnSite Member
    Messages: 27

    Do you have to have a certain gross income a year in order to qualify? Being a part-timer for now I probably dont even bring in 10k alone but, I do need a "boost" somewhere in order to do so. My credit is maxed out for now, so a loan is maybe out of the question for now (until my truck is paid off.) I figured if I pay in on expenses I should get something out of it at the end of the year! Especially the expendables (gas, oil, weed eat string, parts, blades, etc.), cause those things really add up too!
     
  2. True Lines Lawn Care LLC

    True Lines Lawn Care LLC LawnSite Member
    Messages: 2

    Small businesses may be able to deduct the entire cost of a depreciable asset in the year it is placed in service instead of spreading the cost out over the life of the asset. This is known as a Section 179 deduction. Under Section 179, you could deduct 100% of a Mower, other asset in the 1st yr. instead of depreciating it through multiple yrs. of use. It's a great tax write off for a 1st yr. start up business.
     
  3. True Lines Lawn Care LLC

    True Lines Lawn Care LLC LawnSite Member
    Messages: 2

  4. R*onald

    R*onald LawnSite Member
    Messages: 7

    I have a question. I bought a commercial Toro mower last year to mow my 3 acre yard. I'm considering starting a buisness this year. Can I write my mower off in my buisness even though I bought it last year before I started mowing commercially?
     
  5. Darryl G

    Darryl G LawnSite Fanatic
    Messages: 8,604

    Someone mentioned deducting the cost of small tools. Just an fyi, it was changed to $200 a few years ago. So tools with a life of over a year that cost over $200 need to be depreciated now. That would apply to things like office equipment too.
     
  6. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Messages: 4,528

    Often you can do accelerated depreciation and claim it all in one year then carry over anything your don't use for future years. Last years taxes stung because I ran out of write offs and got to pay at the end of that year. This year will be rather sweet as we bought 150k worth of trucks last winter. But we also had about 75k in trade ins then play with what was stilled owed and I haven't got a clue what the final numbers will look like till the accountant tells me in 2 months but I'm optimistic.
     
    hort101 likes this.
  7. DuallyVette

    DuallyVette LawnSite Gold Member
    Messages: 3,550

    Do tell.
     
  8. Darryl G

    Darryl G LawnSite Fanatic
    Messages: 8,604

    Sounds like he's mixing or confusing personal deductions with business ones? You can deduct your costs of doing business as long as they are necessary and ordinary.
     
  9. DuallyVette

    DuallyVette LawnSite Gold Member
    Messages: 3,550

    And the only personal deduction that I know of that has a deductible is medical expenses. I'm sure that if i ever have any medical expenses, they will be business related.
     
  10. guitarman2420

    guitarman2420 LawnSite Senior Member
    Male, from Midlothian, VA
    Messages: 524

    One of the best investments I've made is hiring a CPA. You might even be able to find one that you can barter services and do some mowing services at their home or their business in exchange for their help. A lot of the information included in this thread is great; but, it's just like a jailhouse lawyer – The person giving me advice is not gonna have to pay the penalties – you are. None of us are qualified to give detailed tax advice. By hiring a CPA, I was able to save all kinds of dollars by getting the right deductions and then also making sure that all the correct taxes were paid. The penalties to the IRS and state can be astronomical.
     

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