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when you bid a job how does income tax figure in? is it a certain percentage or what? grasmo.
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Not sure of what you are actually asking. The actual bid has nothing really to do with income tax.
It is the amount of the bid you get paid for that you WILL owe tax on. Having said that, it is not just figured on the money you deposit in your account. You will owe (in general) on the money left over after deducting normal green industry expenses.
If you deposit $20,000 for a landscape job but $10k was the cost of doing the job, you will only pay on the remaining $10k profit. That is a VERY general statement that I just made, much more comes into play here.
Locate someone in your area that can help you with your taxes, they are very inexpensive in the long run, and give you peace of mind.
Once you really get into it, there is ALOT to remember. Get a pro to help you, you'll feel better, you just keep track of EVERYTHING you bring in and EVERYTHING you use for the biz. Did you buy Gatorade for a worker? Did you buy toilet paper for the truck to blow your nose on? Keep those reciepts!
Don't Fear the Green!a.k.a.---> Erich
www.avalawnlandscaping.com
Build a man a fire, he'll be warm for a day.Set a man on fire, he'll be warm for the rest of his life.
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ok say i want to put $35 in my pocket after all costs. it costs me $15 to do the job so the bid is $50. now i will pay the income tax on the $35. well i don't have the $35 anymore. wouldn't you bid the job higher? let's just say that the income tax was %20. wouldn't the bid have been for $58.75? grasmo.
Edited by - grasmo on Jun 19 2002 1:52:52 PMComment
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Grasmo,you really can`t consider income tax when bidding on jobs.Everyone has to pay income tax based on earnings.What is relevant,as said earlier,is expenses.It all depends on how much it cocts you to do business as to how much you pocket.If you want to pocket $35 from a mow job then,yeah,charge $50.Chances are though,for a 1/4 acre residential size lot,nobody in thier right mind will pay you that much!
Another thing to consider is, ofcourse, fair market value for service.In other words.......what is the benchmark figure in the industry for the service about to be rendered?Find out what your competitors are charging for similar jobs.This is imperative!Not income tax........hope this helps you a bit.
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I agree with Grasmo and Negrin.
You need to look at the whole year and not each job.
I do also Highly suggest that you be creative with you're write-offs.
However! If you can get these jobs at a higher rate than go for it.
Time is Money !! <img src=icon_smile_big.gif border=0 align=middle>
Green is good !!
Edited by - Bryan on Jun 20 2002 02:20:28 AMGreen is good !!Comment
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