Tax Deductible

[rldrew]

Hey Forum members:
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I know that equipment, gas, tools, etc. are tax deductible. But what about gifts to customers? ? ? Are these tax deductible too? ? ? Is there a monetary limit that's allowable by uncle sam to deduct? ? ?I think its a great idea to recognize customers for using your services and I have some great ideas I'd like to try. . .

rldrew

[GrassMaster]

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Hello rldrew:

What we do is just purchase items like that & save the receipt. Then at the end of the year it's figured in with materials. You plant flowers & purchase other materials, don't you?

I'm sure others do it different ways, I've been self Employed since around 1980 & I've been audited twice. Once I got back some money & the other time I owed Uncle Sam $33,000 for 5 years of errors on taxes, not my fault, it was my Bookeeper...

After the IRS Agent talked to the 71 Year old Bookeeper, he settled for $5,500. What a relief, I was sweating it for a while! []

[BergLawnCare]

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rldrew you would be really surprised at what is tax deductable. my accountant told me to keep all reciepts for everthing that i buy for the business or while working. You can right 50% of your meals off, any materials and euipment, fuel and oil, computers and printers, ink cartridges and paper, jackets, shirts and hats that have the company name and any other advertising expenses, any license, insurances, phone bills, cell phones or pagers, interest paid on loans, etc... get with your accountant and just make a list of all the tax write offs. good luck!!

[AAffordable]

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What do bookkeepers usually charge? We are looking to get one.

[Bobby D]

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I have a pretty extensive financial and accouting background, but am thinking about getting an accountant for fear of cases like Mr. Admin just talked about. If I screw up, then I am totally liable it sounds like. If my accountant does, then sounds like they show more leniancy toward me and my business. There are other reasons too, that include saving time and more importantly having someone else who knows ALL the tax rules and changes. I would like to hear what some of you think about this, or am I just worrying too much.

[Kidsweet]

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I would like to know how much an accountant charges for his services.

[Scaper-S2k]

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Watch that 50% off for your meals. That will throw up a red flag like no tomorrow. If you buy your employees lunch, you can deduct a certain %....but still watch for that.

You personally can't deduct your own lunch. Almost 100% sure of that. If we could, so could anyone. See, you are not on the clock while eating, and it's not a business expense...it's your own personal expense to live. Now buying dinner for a client is 100% deductible. You might get away with SOME of it if you were on a biz trip and you ate, but not sure.

Now if you were incorporated and you are now working for the corporation? Well, that's a little different.


Watch out for those red flags being thrown up at the IRS.

[CCLS]

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Bobby D,

Around here you can get an accountant on retainer for about $100 a month. They file your taxes for you and tell you how much you need to with-hold from your employees, ect. Personally, I'm going to hire an accountant next year because things are getting to the point where I don't know much about them. (Taxes, deductions, ect.) I think it will save me a lot of headaches when I get bigger if I just have an accountant do all my book keeping for me. I don't want to work all week and have to balance the books on the weekends.

[BergLawnCare]

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Scaper thanks for the remark about meals. I will get a hold of my accountant and get all the details on that issue and let you know exactly how that works out or should i say the exacts what you can and cannot deduct. i know i just take everything to him and he does the rest but that is definately worth me finding out all of the exact info and relaying it to everyone here, i do not want to be misinforming anyone here especially if it involves the irs!!!!

[indmowing]

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As we are a home based business we claim 48% of Rent, Water & Sewage, Electricity, Gas, landscaping Grounds, house ornamental etc on business! This is our Accountant's brain at work ) He'd better be good for something he costs a fortune! We also claim a percentage of coffee, tea, buscuits etc. Lunch & dinner are, as scaper said Personal or Home expenses! This is Australian working obviously but I am sure the general rules would still apply! 48% was worked out pretty much by how much of the home is taken up by the business! I know here, you can claim dinners & presents etc. for employees but as to what the limit is I am not sure but I do know there is one!

Since the Goods & Services Tax was introduced the accountants/book keepers etc. have been trying to get a grasp of that, the rules were changing every two seconds, so it was a challenge for them! It's all fun and games!

Ebony

[rldrew]

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Thanks guys! !! ! ! Awesome info. . .

[driller]

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WE keep a file for each catigory of tax deductibale items, at the years end we print out all income and money spent on tax deduct items and i take it to my tax man (cpa). He fills out all the forms, does all the depreciation on equipment and vehicles and charges me 150.00.

Gifts to customers might fall under advertising. Do you mean promotional items? Sounds like you need to ask CPA to be sure. thats another nice thing about having a good tax man, you can give him a quick call and save yourself a lot of headache and sleep better.


driller

[Fvstringpicker]

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To answer your question on gifts. Generally, they must be business related and limited to $25.00 per individual. BTW, In my other life I am a CPA and X revenue agent.

[G-Man]

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"Don't leave home without one" - a CPA that is!

Mine charges between $300 and $400 per year to do my taxes and it's a bargain - believe me! Of course I have my ducks in a row and don't just take him a box full of unorganized reciepts! I have friends who'd scoff at the idea of paying someone to do your taxes, but once the IRS notices you - Katie bar the door! 'Cause you'll have them looking at your business for the next 10 years! Definitely don't do anything to raise that red flag! Noooooo!

I'm not out to screw anyone - least of all the government (I want those poor kids to be able to lay around all day eating off me, doing drugs and playing video games, and then rob me at night just like every other American does after all!).

I do however plan my purchases of capital equiment under the advice of my accountant. Many times, you can get Uncle IR'i'S to help pay for part of it - in fact everytime if you plan for it properly. I'm in the 30% bracket, and therefore, anything I buy up to 24,000.00 each year that I use in my business nets about 7,500.00 in tax savings alone - that's before my other deductions! That new Bobcat just went from 24k down to 16.5k in other words.

Like I said, I don't nickel and dime the government - but I DO take every honest deduction known to mortal man! It's my duty to do so! It's one way I can fight the tax 'n spend liberals in Washington and at my State capital! You see, if you starve them - then they'll eventually go away maybe!

Merry Christmas!!


Gary

PS - I know some of you think I'm a redneck hillbilly who's out to overthrow the government. There are others here that think I'm a racist I'm sure. Neither is true - well, maybe the first one has some truth in it []. I'm just sick and tired of paying for things I don't get any benefit from!!!

When you buy something and don't get what you paid for - aren't you upset? Yes! Then why do most of us ignore it when it comes to the government and taxes is beyond me!! Don't tell me that my taxes go to build highways - when I'm boucing down the damned road so rough that I need a hernia operation afterwards! Don't tell me that my taxes help educate poor Johnny - when the little ******* graduates from high school and can't even read his diploma!!

Bottom line is: WE ARE NOT GETTING WHAT WE PAY FOR!! This government is OUT OF CONTROL! Wake up and vote before it's too late.

Gary

[CCLS]

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Right on Gary