ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Top Posters(30 Days)
Potseal 11
Recent Posts
600 KW 120/208 3 Phase Y protection
by SteveFehr. 07/23/17 09:46 AM
1913 American Electrician's Handbook
by gfretwell. 07/20/17 01:08 PM
Green House wiring
by ghost307. 07/20/17 09:10 AM
Permit Snafus...AHJs and Contractors Jump in
by HotLine1. 07/18/17 08:06 PM
New in the Gallery:
SE cable question
Popular Topics(Views)
239,273 Are you busy
174,732 Re: Forum
167,110 Need opinion
Who's Online Now
0 registered members (), 50 guests, and 8 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate This Thread
Page 1 of 2 1 2
#182662 - 12/05/08 08:01 PM Tax write offs  
sparkync  Offline
Member
Joined: Oct 2002
Posts: 826
NC
It's almost the end of the year again, and I'm thinking about investing more of my money in office equipment, tools,etc. I'd rather have something for my money, than send it to Uncle Sam. I think I need it more than he does. Of course the hard thing is to pay it back, but I'll have to pay Uncle Sam anyway. What are some other thoughts on the matter? I don't really have the money to spend, but if I don't spend it on the company, I'll sure have to give it to the gov. Steve...


Business, Office, Estimating, Legal:

#182664 - 12/05/08 08:38 PM Re: Tax write offs [Re: sparkync]  
renosteinke  Offline
Cat Servant
Member
Joined: Jan 2005
Posts: 5,316
Blue Collar Country
This is what you pay your CPA for: professional guidance as to making such purchases.

At this point, you ought to have a pretty good idea as to your tax liability. This weekend, play "let's pretend," and prepare your taxes as if the year was over. How much do you owe?

Now, do it all over again, only add, say, $3000 in office expenses. How does it change your bottom line? How much does it affect your tax obligation?

The 'dirty little secret' regarding tax deductions is ... you have to first make the money, before you can spend it. All the write-offs in the world won't help you if your business is already marginal.

In short, buy / lease something first of all because you need it, and it will carry itself. Any tax savings are but 'gravy.'


#182667 - 12/05/08 09:45 PM Re: Tax write offs [Re: renosteinke]  
JoeKP  Offline
Member
Joined: Mar 2008
Posts: 144
Berkley, MA
Yeah, i agree with John.


-Joe
“then we'll glue em' then screw em'”
-Tom Silva
TOH

#182680 - 12/06/08 02:22 PM Re: Tax write offs [Re: JoeKP]  
sparkync  Offline
Member
Joined: Oct 2002
Posts: 826
NC
My tax preparer said all my tools were 100% deductible, and that a new computer etc. could be 100% deductible in one year, and not have to be depreciated. The bottom line of my taxes is that I expect to have to pay a bunch, around $5500.00 at least. Yea, I know, I should have been paying on it through the year, but haven't been able to consistantly. Thanks for the input.


#182682 - 12/06/08 03:22 PM Re: Tax write offs [Re: sparkync]  
gfretwell  Offline


Member
Joined: Jul 2004
Posts: 9,099
Estero,Fl,usa
When I had my business I always did the "lets pretend" John was talking about in December to see if it was a good time to buy something. If you are really going to be sending Sam money and there is something you need, December is the time to buy it.
Careful timing and a sharp pencil on your schedule C can reduce your taxable profits. Don't forget any "expenses" when you are tallying them up.


Greg Fretwell

#182694 - 12/06/08 11:43 PM Re: Tax write offs [Re: gfretwell]  
Zapped  Offline
Member
Joined: Oct 2002
Posts: 482
Huntington Beach, CA, USA
Interestingly enough, boots are deductible and jeans are not. Of course, tools and administrative costs are deductible (including your computer), and your truck if you use it only for business.

Anybody have any other tips on deductions out there? Be sure before you post, as I have been audited, and I can tell you, it is no picnic. They allow no "gray" areas whatever.


#182704 - 12/07/08 02:58 AM Re: Tax write offs [Re: Zapped]  
gfretwell  Offline


Member
Joined: Jul 2004
Posts: 9,099
Estero,Fl,usa
I was a contractor/inspector, paid on a 1099 and filing on a schedule C when I was working (retired now).
I always deducted the cost of CEUs and the various code books, CDs etc. That can be quite a big number if you get the whole set every cycle (electrical and building).
The strange thing was my books and disks was my biggest asset when it came time to pay my tangible taxes. My PCs were all junkers when I started and I never really had more than a hundred bucks in them through any given tax year.
I managed to get away with the dreaded home office too. Just keep good records. I had one audit and they ended up giving me money.
I still pay tangible taxes on my code books since I keep my license up but since I don't have any revenue I can't write anything off.


Greg Fretwell

#182706 - 12/07/08 09:47 AM Re: Tax write offs [Re: gfretwell]  
Electricmanscott  Offline
Member
Joined: Jan 2002
Posts: 1,457
Holden, MA USA
Spend, spend, spend! Help the economy, get some writeoffs. smile

I have done more than my fair share this month. Probably too much. cry


#182726 - 12/08/08 12:03 AM Re: Tax write offs [Re: Electricmanscott]  
electure  Offline


Member
Joined: Dec 2000
Posts: 4,260
Fullerton, CA USA


#182774 - 12/09/08 09:29 PM Re: Tax write offs [Re: sparkync]  
sparkync  Offline
Member
Joined: Oct 2002
Posts: 826
NC
I started buying tools today, setting up ads in yellow pages,newspaper, and looking into getting a new computer setup. Thinking of other ways to advertise. I think that is my main goal now. I GOT to get some work to pay for these things. crazy I guess I've always got the option to travel. I may have to if I can't pay for this stuff grin Steve.....


Page 1 of 2 1 2

Member Spotlight
Bill Addiss
Bill Addiss
NY, USA
Posts: 3,878
Joined: October 2000
Show All Member Profiles 
Featured:

2017 NEC and Related
2017 NEC
Now Available!

Shout Box
Powered by UBB.threads™ PHP Forum Software 7.6.0
Page Time: 0.016s Queries: 16 (0.003s) Memory: 0.8211 MB (Peak: 1.0039 MB) Zlib enabled. Server Time: 2017-07-24 10:46:00 UTC