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  • write offs

    this is the first year that i owe federal taxes. is there anything i can do to reduce the amount? can i still buy equipment and take the tax deduction for last year?
    how does that work?
    the only dumb question is the one that is not asked!

  • #2
    Re: write offs

    the expenses you incurred last year you can take off for your business, but I think it is to late to buy some thing now and take it off of last years or to put it on last years expenses,

    there may be a possibly to do some income averaging, if it could or would apply, but I think for the most part all you can do now is to start planing for this current years taxes,

    I have found that by hiring a good tax man will usually save you more than what he costs you, they know the rules and how to use them to your advantage,

    many have a pre end of year evaluation of there tax situation and figure out if a major buy of some thing for the business would be beneficial on the tax side of things, some times with some of the deprecation rules one can buy some thing and take enough off the taxes burden to basically buy it, with the tax savings.
    I would suggest to find a good tax person/accountant and get some advice that will work for you and your business and your needs,
    there are so many rules that apply to various situations, (some time the way you have your business set up can make a major difference), so what may work for one will not even apply to another.
    Push sticks/blocks Save Fingers
    ~~~~~~~~~~~~~~~~~~~
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    attributed to Samuel Johnson
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    PUBLIC NOTICE: Due to recent budget cuts, the rising cost of electricity, gas, and oil...plus the current state of the economy............the light at the end of the tunnel, has been turned off.

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    • #3
      Re: write offs

      jered the time to buy is the last few weeks of december as you already should know where you stand with the year to date.

      i guess i didn't listen to my advise as i bought my sprinter the first week of january

      don't you have a lot of kids

      rick.
      phoebe it is

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      • #4
        Re: write offs

        yes i have 5 kids. but this is the first year we will have to pay. we have always got something back even if it was a little. just 5 grand more in k-60's would have done it!
        the only dumb question is the one that is not asked!

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        • #5
          Re: write offs

          Carefull, you'll get Rick all hot and bothered.
          www.ClinkscalesSeptic.com

          Comment


          • #6
            Re: write offs

            Write off's have to be purchased in the year that you are paying the tax for. Depending on the type of item, it may have to be amortized over several years... for instance a car, truck, building, some types of equipment, if I recall correctly.

            But, you can not buy something now and write it off of last year's taxes. If you use part of your house for an office, work area, etc. you may be able to write off some of the house expenses... but this is often a "red flag" to the IRS, so you need to be very careful.

            Best suggestion, is like BHD said... get yourself a good tax accountant. They know the ins and outs much better than you and I do. Even when I've found no other way to avoid a tax expense, I've been joyously surprised at how much more those guys know.... they will most always pay for themselves and then some.

            In addition, their expense is a write-off too I believe. AND, just the fact that you have used a third-party tax accountant goes a long, long way to avoiding any "red-flags" from the IRS.

            I hope this helps,

            CWS

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