Accounting? Taxes?

[Caneplow]

I read an interesting thread on what people are doing for Taxes or tax right offs for their lawn/lanscaping businesses and was wondering how/what you do for your snow removal business? Milage? Your computer? Your garage?

 

[John Allin]

I tell our subs... if you have three trucks or less, and if you're not 'losing money' on your return - you're doing something wrong......

(....ok, BRING 'EM ON.... hit me with it... I KNOW this statement will bring out the naysayers and goonslayers... I can handle it..... I'M ready for ya.... BANG AWAY !!!!.....)

 

[BRL]

Its the same as every business, all of your expenses should be written off. John, for how long do you recommend a loss? After a few years in a row of claiming losses, the IRS will audit & consider the "business" a "hobby" & I believe all of the rules then change. This is what my accountant told me. Of course if you live in my area you can legitimately pull off a loss in a snowplowing only biz for many years, given our lack of snow for many years at a time.

 

[John Allin]

I was told 4 years, max.
I think it was 4 or 5 years for us, in the beginning. Might be why I got audited a few times early on. The last year I lost money was the first year I had a CPA do my returns. After that, it was clear sailing, no audits and turning a profit (albeit a small one, thanks to the accountant).

Once you get going, you really do need to make a profit. After awhile, and once you use up the legitimate deductions you gotta start turning a profit or you won't survive.

Hell, I pay more in taxes now than I gross'd the first 5 years and I long for the days of not having to pay any taxes......

 

[Majestic]

TAXES,TAXES,TAXES,drives me crazy.The first couple years in business I thought I was going to go crazy,still think that sometimes.Have a little better understanding now after 10 years.I still think my accountant probably thought I was crazy when Id say are you sure these are correct.940,941,uc2,quarterlys year end reconcilliations,pa3,pa501 Rev 1667(sales tax) Tax my paycheck then tax everything I buy with whats left after taxes.Did I forget any? all yeah 1040,self employment tax Tax me tax me tax me.

 

[John Allin]

Too much Jolt.
Ya gotta stop drinkin that stuff when it stops snowin.....

 

[Majestic]

yeah that jolt will do it to you every time.If it would just snow again I wouldnt have as much time on my hands to get all jolted up

 

[John Allin]

Maj....
You might get some tomorrow, from what they say up this way.

 

[SDF250]

jolt yeaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

 

[SDF250]

majestic

i gotcha! first year i think i'm going crazy

 

[Caneplow]

JOLT.... The breakfast of plowers!