As a small time EC, I've spent most of this weekend finishing out the interior of a large portable building that I intend to use for a office. I've got less than 5 grand in the whole thing but it is not on a business location. Do these types of expenses have to be pro-rated over time or can they be a one time expense tax wise? I also am having a car port put up for my service truck, Ive spent alot of money on tools, and vehicles this year getting my business up and running.
Tax question for business expenses
- Thread starter Mule
- Start date
- Status
mdshunk
Senior Member
- Location
- Right here.
I think I could answer your question with a solid answer, but let me save you a lot of heartache. The best money you can spend, as a startup, is spent on a good accountant then on a good attorney. Seriously. They're not nearly as expensive as you might fear, and they'll save you as much or more money than you spend on them. Guaranteed.
peter d
Senior Member
- Location
- New England
Isn't it sad that business and tax regulations are so stifling that a lawyer and accountant are necessary to run a business?
jmsbrush
Senior Member
- Location
- Central Florida
Marc, I have a good Accountant, What are some of the reasons for the Attorney?mdshunk said:
Generally speaking, large expenditures on physical assets are capital expenses and are depreciated over the useful life. That is to say, your expense deduction is divided over the tax years of its expected useful life. However, there is a "loop-hole" deduction which permits you to deduct the full expense of many capital expense items, up to a calculated limit. You have to file a certain form, which I can't remember the number right now... it's been years since I filed a business return. Your accountant should be able to provide more detail.Mule said:Ok, I guess I have to pay for an answer?I recently signed on with an accountant, and I have a attorney that I use in rare occassions, but I just thought I would ask the question.....
Smart $ said:
Thanks alot, I knew someone had the answer.....I avoided using a small business loan, and have been using cash, but it sounds like making payments on these items will stretch out the outlay with the depreciated life and be a better deal for the long run....I will be talking to the accountant for sure....
brian john
Senior Member
- Location
- Kilmarnock, Va
- Occupation
- Retired after 52 years in the trade.
jmsbrush said:
Employees, customers, strangers on the street are 3 good reasons.
My wife recently opened up a business and her and her partner had an attorney, my wife hired an attorney to check the attorney and to cover he self. PAID OFF, the first attorney left a few thing on the table in favor of the seller and her partner.
You are going to tie up your life savings, all your family's worth the minimal expense for an attorney and an accountant will be rewarded.
I have 3 different attorneys we use at work real estate, libel and employee issues. Everything is soooo specialized these days.
Thats something that you will have to decide. I think that $50.00/ month sounds a little low. My payroll service costs more than that. Find out exactly what the accountant is going to do for his money. 941's, sales tax, year end tax, estimated taxes, payroll, business taxes the list can go on . If you get an accountant make sure that you are comfortable with him or her. A good honest accountant can save you a lot of money and give you a good piece of mind. Tax penaltys have put people out of business. Make money doing what your good at.
DanZ
Senior Member
Would you want some fresh out of high school kid with blue hair to rewire your house?peter d said:
Would you want the slob with a truck full of empty beer cans to build a deck?
Would you want a guy on the street to perform open heart surgery on you?
Would you want the mechanic who has a lot full of junked cars that never move to work on yours?
Why wouldn't you want a lawyer to look over your legally binding contracts and business deals?
Why wouldn't you want an accountant to handle your money?
Why wouldn't you want a financial planner handling your retirement income?
Why wouldn't you want someone with experience and education in their respected fields working with you?!?
:grin:
On a side note, isn't it sad that a bunch of people had to get screwed over to make all these laws, rules and regulations we have?
- Status