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?? i dont no what to do

Discussion in 'Introduce Yourself to the Community' started by bru z71, Dec 26, 2009.

  1. bru z71

    bru z71 Senior Member
    Messages: 121

    ok i work for a sub doin commerical plowing i am not registered commerical now when i do my taxs should i clam what i make from plowing if i do that can i clam gas repairs etc ? and by not having commerical plates is it going 2 bite me in the ass when i do my taxes some how? ussmileyflag
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Not sure about your State taxes but, If your plowing I hope your carrying insurance to protect yourself . you should register as an business to take advantage of your business deductions. Right now you maybe considered a hobby plower.
     
    Last edited: Dec 26, 2009
  3. Bajak

    Bajak Senior Member
    Messages: 999

    Oh dear!

    Oh d d d dear.

    piglet.JPG

    piglet.JPG
     
  4. bru z71

    bru z71 Senior Member
    Messages: 121

    i am on the company insurance
     
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I wouls still back yourself up. I bet that insurance is to protect the company and not you.
     
  6. bru z71

    bru z71 Senior Member
    Messages: 121

    the guy i am working for in a really good family friend
     
  7. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Until something happens!
     
  8. bru z71

    bru z71 Senior Member
    Messages: 121

    he grew up with my father so i am not to worryed about it hes a good guy
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    All I'm saying always protect yourself first no matter what.The new year is coming up so start fresh. Get yourself set up as a DBA at least. Open a bank account under your business name or DBA. Keep things separate from your personal stuff. This way you can do those deductions. GET THE INSURANCE FOR YOURSELF!
     
  10. GMCHD plower

    GMCHD plower PlowSite.com Addict
    Messages: 1,819

    I have no advice to offer cause i'm 14. But ( it sounds dumb) what is a DBA?
     
  11. Lugnut

    Lugnut Senior Member
    Messages: 250

    DBA stands for doing business as...this is the simplest form of setting up a business, as it basically allows (but doesn't require)you to open bank accounts with the company name, get insurance, etc., but you are not seperate from the business as you would be if you incorporated
     
  12. GMCHD plower

    GMCHD plower PlowSite.com Addict
    Messages: 1,819

    Ok thank you, like I have a little lawn care thing I do so I could put DBA David's Lawn Care right? That's what I tell my customers.
     
  13. Lugnut

    Lugnut Senior Member
    Messages: 250

    You got it...however you would have to collect sales tax and claim income
     
  14. Clint S

    Clint S Senior Member
    Messages: 280

    Are you paying taxes on this money and how much do you make? There is a minimum you can make and not pay taxes on. If you are paying taxes on this money, you could set up a DBA. If you are not, I really would not want a paper trail back to me if I was over the taxable limit.
     
  15. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    To the original question - claim the income on your taxes. Insurance and so on is irrelevant to the IRS. You can now also claim deductions and maybe actually lower your taxes (if you show a business income loss - or more expenses than income). Before deducting your equipment, though, talk to a tax advisor. The timing or "Placed In Service" can make a lot of difference, My equipment in always Placed In Service on Jan 1st if I have an option. Be very careful claiming a home office, also. There are a lot of deductions, but it also increases greatly the likelihood of being audited.

    As someone pointed out, you may not need to claim the income from plowing. Read the IRS instructions.
     
  16. GMCHD plower

    GMCHD plower PlowSite.com Addict
    Messages: 1,819

    No I do not make over the tax limit. But I just needed a name for people to know me by. But no I dont make over the tax amount.
     
  17. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Being from Maine, I can tell you that all you need to do is make up a name and start using it. I have a company with the same name as at least one other in Maine.

    edit: It will simply your life if some part of your company name uses your name - for instance, I use "Mick's Snow and Ice". I also use "M&S Transport". My bank considers both as containing "some part of my name" so I don't need a whole separate account; I can have a "sub" account which keeps the money flow separate. It's like one part of the account is a checking account; one is savings and a third is M&S Transport.
     
    Last edited: Dec 26, 2009
  18. cleansweep007

    cleansweep007 Senior Member
    Messages: 119

    Insurance is the first thing you should get when you are thinking about putting a plow on the truck.
     
  19. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Listen to Grandviews and Micks advice... If your "friend" is going to 1099 you, you are treated as a sub... subs should ALWAYS carry their own insurance! (and you can write it off on your taxes!) We're just trying to give some friendly advice.... COVER YOUR A$$ and get some insurance, so if some slips and falls, and they sue YOU, then you won't loose everything you've worked so hard for.... Take this little bit of important advice for what its worth and good luck to you!
     
  20. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    I don't mix friendship and doing business together. Fast way to lose a friend
    Yes you can write maintenence and repairs off on taxes.