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What type of reciepts do you keep track of for taxes?

Discussion in 'Business Fundamentals' started by Hawkz, Dec 4, 2002.

  1. Hawkz

    Hawkz Member
    Messages: 41

    Do you keep all receipts related to your snow removal business, gas, plow parts, truck parts, shovels, sand, salt; etc. Just curious as to what you guys usually keep as I will be getting some things in order soon. I am getting ready and setting things up. No freaking snow, not now at least. Wish I lived up there in the East or in Colorado near a ski resort. Rode in a ski mountain groomer once, an awesome time. Hopefully the snow will fall soon.... Here is a beer cheers for the East!! Thanks guys- Hawkz
  2. Pelican

    Pelican 2000 Club Member
    Messages: 2,075

    Every penny you spend that's business related in any way is deductable. Keep all receipts, including meal tickets while you are out plowing. It's best to have an accountant handle your taxes when running a business, they know the ins and outs of the tax laws and can "find" you a multitude of deductions. In home operated business' you can claim a portion of your house and related expenses as a deduction.
  3. Ohiosnow

    Ohiosnow Senior Member
    from Ohio
    Messages: 415

    What to keep

    Keep any & all receipts :waving: And then let your tax accountant sort it out :D More is better when it comes TAX TIME :waving:
  4. digger242j

    digger242j Senior Member
    Messages: 672

    Although I have heard it said that that deduction often raises a red flag at the IRS because it's so often abused....
  5. chris k

    chris k Senior Member
    Messages: 204

    EVERYTHING!!!! Keep toilet paper in the truck? Write it off.
  6. Brother1

    Brother1 Member
    Messages: 59

    Digger - my accountant told me the same thing. Said it would be better for me to charge my business rent for office space. Told me to just write myself a check each month and said to just check what the going rate is for square footage of office space in my area. Anybody else ever heard of doing it this way?????
  7. Hawkz

    Hawkz Member
    Messages: 41

    Thanks guys and gal, appreciate your responses.
    I think the best idea, like it was already said, is to keep every reciept and then let someone sort through it. I am trying to be a smart shopper w/ parts and equipment though. I already bought a John Deere snowthrower a few years back/ to bad I can't use that receipt!!! What is the best rate for an accountant??? Thanks, Hawkz
  8. shamrock1

    shamrock1 Member
    Messages: 30

    Keep every receipt attributable to the business, we have a great CPA firm that we deal with and we have it set up for a nominal charge ($300-500) for work performed @tax time.

    To limit the hours involved, I personally do many of the spreadsheets, receipts, numbers, and categorizing(tapes) so that the CPA's are not sifting through everything trying to figure out where each expense should go....It's all organized and easy to plug in to the Return forms.

    One note about Receipts, According to the Kinder, Friendlier IRS, EVERY RECEIPT must have a description of what and why the item purchased is necessary for the business,

    *Translation* BE PREPARED to justify your expenses, we do this now after watching a great deal of receipts disallowed by an IRS auditor because we did not have full-documentation, I know it sounds like a pile of unnecessary BS!, but I would rather do this now than watch legitimate business expenses thrown out because of improper documentation

    We have off-site facilty and I have a home office where I like to do much of my paperwork etc.... the home office is deductible to a certain percentage depending upon the square footage utilized..Not sure what the exact formula is, we leave that up to the bean counters...

    Good Luck, May you not ever have to deal with the IRS...:realmad:
  9. A.L. Inc.

    A.L. Inc. Member
    Messages: 97

    Hawkz- One thing that has made my life easier is paying everything by credit. Gas, oil, parts, shovels,etc. The only thing I pay cash for are meals, etc. When I get the monthly bill, I pay it by check. I itemize right on the check stub how much of the total was for parts, tools, whatever. My book keeper then can do all my basic financial statements right from there, and with the exception of the small number of cash reciepts, she doesn't need anything else. Her quarterly reports go right to the CPA. Try to always keep the "C" word to yourself, if you know what I mean. Mike
  10. SLC1

    SLC1 Senior Member
    Messages: 242

    We were auditied by the State OF Ct. this past summer and let me say that it is best to keep every single reciept that you get and also like HawkZ said either pay for everything with a credit card or set up accounts at all places you deal with, the auditors want to see everything and dont want to hear that you dont keep any reciepts so just make sure you keep any and all paper work. Just my two cents
  11. wyldman

    wyldman Member
    Messages: 3,265

    Pretty much what everyone else said,but go see an accountant FIRST.He will tell you what to do,how to set it all up (balance sheets,etc),get it organized,and then deliver it to him.Will cost you much less as the big stuff is done.All he has to do is plug in the numbers.

    The credit card deal works good to,especially if you get a points card,or GM Visa.Covers my down payment on all our new truck purchases. :)
  12. KatWalk

    KatWalk Member
    Messages: 83

    Wyldman.....if the 97 Dodge listed at the bottom of your page is your newest truck, you must be racking up the reward points on that GM card. 97-2002....you might get a new truck and not just the down payment!!! :drinkup:
  13. wyldman

    wyldman Member
    Messages: 3,265

    No,it's not our newest truck,it's just the one I use for plowing.My sig would be too long if I listed everyone of them.We have 2 2002's,2 2001's,1 1999,2 1998.5's,and my 1997.All Dodge Cummins turbo diesels,mostly ext cab long boxes.The 1999 is a dually 360 propane with a wrecker body on the back.All of our other trucks are 1977-87 GMC full size Jimmy's ( 4 converted to 3/4 tons),and a couple of S10's for residential work.

    I usually rack up the max $5000.00 a year in GM card earnings,as I use it for everything,and my leasing guy lets me apply them towards the Dodges we sublease through them.Not supposed to be done that way but we get away with it.I covers the down payment,and we buy them out when lease is up.Good writeoff value as well.I heard they are knocking back the rewards to 3% of all purchases and limiting the amount you can redeem at one time next year,that sucks.

    I also have a mint 1997 Cummins turbo diesel,ext cab long box,for personal use only,only 26000 KM's on it.It's my baby.

    Here is a pic

    myram small.jpg
  14. KatWalk

    KatWalk Member
    Messages: 83


    Nice trucks....I actually just traded some plow accounts with an acquaintance of mine that runs the Dogde Cummings Diesel. As we drove around looking at the properties I realized it was a decent truck. I started young with chevy/gmc and have kind of just stuck with them. I think I am going to look into that GM card though...sounds good. Have a good christmas.
  15. 3dbbok

    3dbbok Junior Member
    from IL
    Messages: 9


    First find an accountant that you feel comfortable with, then ask if he is familiar with Quickbooks Pro 2002. He/she can help you set up accounts and tutor you about the program. You already have a computer and this is very user friendly software.

    Accounting done on paper can be very tiresome. You will be amazed at how easy and accurate it will be on compter.

    Get a filing cabinet, save those receipts and find your accountant.

  16. MLB

    MLB Senior Member
    Messages: 110

  17. Got Grass?

    Got Grass? Senior Member
    Messages: 641

    Simple, keep EVERY THING!!!!! Your CPA / Tax guy will be able to sort everthing out...
    Keep it sorted by date, to save you $$ when you meet up with him.
    How anyone can get by w/o a CPA I dunno... They know what will bring up red flags to the IRS. When it comes to Audit time your CPA will take the heat, as long as you provided them with EVERYTHING!!!