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Taxes: Cost of Goods Sold or Other Deductions

mcw615

LawnSite Senior Member
Location
Virginia
I am just going through the QuickBooks Chart of Accounts just to begin organizing things for when I get the taxes filed.

For this industry do you put your fuel expenses under Cost of Goods Sold or the standard Other Deductions? Just curious to what your doing.
 

touhey33

LawnSite Senior Member
I am just going through the QuickBooks Chart of Accounts just to begin organizing things for when I get the taxes filed.

For this industry do you put your fuel expenses under Cost of Goods Sold or the standard Other Deductions? Just curious to what your doing.
If your talking about equipment fuel costs, I just put them under my own category for expenses, labeled equipment fuel costs.
 

brucec32

LawnSite Platinum Member
Location
Atlanta, GA
Cost of goods sold would be things you buy for resale to customers. Unless you're selling jugs of gas off the trailer <G> then it'd be best to put fuel under its own category.

As far as I can tell it's never a mistake to give every item its own expense category, as you can combine them at tax time if needed.

You will also need to account somehow for gas used for mowing machines vs gas used for vehicles, as the latter is deducted seperately in the vehicle expense rules (actual cost or standard mileage deduction). Ideally you would fill the truck, then shut the pump off and fill the cans and mowers as a seperate transaction. Check IRS rules, they may have something about estimating fuel use with mowing equipment even if purchased in the same transaction as vehicle fuel.
 

touhey33

LawnSite Senior Member
yea I usually use two different pumps when getting fuel for truck and equipment. I get fuel in the mowers, then pull a little to the next pump and get fuel for the truck. Most of the time I need Fuel for equipment at different times then for the truck. Like the other poster said I label my own expense categories for tax time ex:equipment fuel costs, maintenance, small tools etc...
 

millenium_123

LawnSite Member
Location
Amarillo, TX

KeystoneLawn&Landscaping

LawnSite Senior Member
Location
Erie, PA
Your CPA can more precisely answer your questions, since he/she knows your situation the best!
 

Bob_n_weave

LawnSite Senior Member
I am just going through the QuickBooks Chart of Accounts just to begin organizing things for when I get the taxes filed.

For this industry do you put your fuel expenses under Cost of Goods Sold or the standard Other Deductions? Just curious to what your doing.

I give all my receipts to my CPA and im done. :)
 

dishboy

LawnSite Fanatic
Location
zone 6
I am just going through the QuickBooks Chart of Accounts just to begin organizing things for when I get the taxes filed.

For this industry do you put your fuel expenses under Cost of Goods Sold or the standard Other Deductions? Just curious to what your doing.
If you use cost of goods sold you will open yourself up to a bunch of accounting /filling rules. You do not want to go there IMO unless you are a retailer. I deduct things I resell like fert as supplies or Landscape supplies.
 

AllAmericanlawn

LawnSite Senior Member
Location
Knoxville, TN
I dont use very much fuel compared to other LCOs. Everything i service is within 5 miles of my house. I use about $80-90 a week in fuel to service about 70 accounts. Thats vehicle and equipment fuel costs. I write all of it off on equipment fuel use because it is below the average for most. Just make it make sense to you. And dont sell jugs of gas of your trailer. That could turn bad quickly lol.
 
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