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If you find yourself giving the government more each year in income taxes while your shop is struggling by with outdated or inadequate tools you may want to rethink your position with the help of an accountant. Over the course of my business life I've always spent most of 'my' income for tools, equipment and facilities to hold down my tax burden. There are several things that can be bought for tax write-offs that can be of a personal benefit to you, vehicles, computers and tools are but a few. Most of us are going to spend all that we make on something anyway, so why not have a plan that will give you the most bang for the buck. It's a simple decision to make, either spend the money on your business or give it to the government to squander and waste (they're like us they'll spend all they take in too).
------------------ Larry
Elliott Design McLemoresville, Tn.
If you can't find the time to do it right, where gonna find the time to do it over?
Posts: 486 | From: McLemoresville, TN. USA | Registered: Nov 1998
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Hi Larry. Good point. One year I decided to switch to a less expensive accountant. Big mistake I Had to pay more taxes. So last year I went back to my expensive one. He knows his stuff and can really help. You would think I would have known better....being in this crazy business of signs! It is well worth the extra money to find a good 'tax person'.
I plan on buying a laptop before the year is over (Cha-ching, year end deduction) and I'll also be purchasing some nice spray equipment sometime, under the business name of course, but these just happen to be things I woulda bought as personal toys if I didnt have a business. It just so happens I can use this stuff in my business so I'm gonna go ahead and make it a write-off. =)
I've got a pretty basic philosphy about taxes.. I might owe a load of cash, but if I file for extension I can take that money and in six months quadruple it.. covering what I owe and making a nice profit. =)
------------------ Mike Pipes -----trapped in a box with a computer and a slice of cheese-----
Posts: 145 | From: Lake Havasu City, AZ | Registered: Dec 2000
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Tools, yes. And an accountant, yes. Another benefit of an accountant, I'd think, is to save you the time and hassle of pushing paper for the gummint.
Bruce Williams Lexington KY
------------------ Bruce Williams
Posts: 945 | From: Lexington, KY, USA | Registered: Mar 1999
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This is my plan as well....but, my accnt tells me the Gov will only overlook my 'biz' spending for so long,,,, after that they want to see a increase in my income. Does this mean that it's not ok to spend most of what I make on my business? I have my significant other to pay the household bills, leaving most of what I make to spend as I like. I certainly don't want to give it to the IRS, altho i'm sure they are wonderful people (ahem, just in case they are watching)and are really looking out for MY welfare and happiness.......... Isn't it my right to spend what I make on whatever i damn well want to? Everything i buy is either for the shop, or to continue my education in this craft. So I don't mind if I do! A
------------------ Adrienne Morgan Splash Signs www.splashsigns.com "Rainkatt'
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Glad we've got a few that understands the benefits of keeping our tools (and toys) upgraded. Anything that speeds up production or makes my job easier, safer or more interesting is always a welcome addition. I make it a part of every job to add in for 'business profits' so I can continue to grow my shop and equipment. Adrienne, never heard of it being a government mandate for a business to earn a profit, what about the ones that buy other businesses just for a write-off? I think your accountant is just trying to make sure you have enough profit to afford to pay his fee. I have used several accountants over the years and a couple of them had the idea that you should only buy something IF your business just couldn't operate without it and the rest of them would say 'go buy a new what-ever or your going to have to give it to the tax man'. The laws in your area may dictate somewhat different standards than here in Tennessee.
------------------ Larry
Elliott Design McLemoresville, Tn.
If you can't find the time to do it right, where gonna find the time to do it over?
Posts: 486 | From: McLemoresville, TN. USA | Registered: Nov 1998
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posted
Larry, I agree...I am new to running my business proper like, but from what I understand you are right. I wonder if one day the IRS will have a special tax form just for buisiness travel the simply states: ------------------------------------ 1. Did you travel anywhere for business this year? 2. Did you enjoy it? a.If no, you may deduct your expences b.If yes, you may not deduct your expenses ------------------------------------------
I'm with Mike on this, my toys ARE my business tools. I told Jim I want power tools for Christmas! Nothin' says love like a new roter blade cuttin' tool!! I plan to get new brushes some more One Shot, new plotter blade, digital camera, I already got a new headset phone so I can work whilst talking to customers. I'm more interested in getting everything I need to run my business efficiantly. (maybe get me one of them electronic dicshonarees )
HAHA
------------------ Adrienne Morgan Splash Signs www.splashsigns.com "Rainkatt'
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