Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 278 October 8, 2004
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 278 October 8, 2004 |
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 From: Hohenwald, TN Dear TaxMama, My husband and I are planing to start a lawn care business in the spring, but we would like to get started now on purchasing equipment needed. When starting a small business in Tennesse how much of our purchases can we write off on our taxes? We need to purchase about $60,000 worth of equipment to get started. We are new to owning a business and would like to also know exactly what can be written off as business expenses. Thank you for your help. Leah  Dear Leah, Sounds like a wonderful business. And a huge capital outlay. I really do wish you'd meet with a good local tax pro to do some planning, though. Invest a couple of hundred dollars and do it right. Issues you'll need to consider: Do you have a lot of income this year that you want to be reduce? If you do, you may want to buy enough equipment this year to write it off. But the only way to write it off this year, is to start the business in 2004. (I am sure you can find at least one or two customers who can qualify you for starting now.) if you're not going to need the deductions this year, then go ahead and buy the equipment you need. Save the invoices and use them next year when you put them into service. There are SO many things you can write off. Think about this as a rule of thumb: If you REALLY used it for business, it's deductible. However, just because something IS deductible, doesn't mean you want to use the whole deduction right now. Sometimes, you don't need it; and you're better off spreading the deduction over several years. My book, Small Business Taxes Made Easy will be available in December - and it will give you a LOT of help and guidance in setting the business up properly. And right now, you can pick up a copy of Jan Zobel's book - Minding Her Own Business: The Self-Employed Woman's Guide to Taxes and Recordkeeping Best wishes, Eva Rosenberg, MBA, EA  |
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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