- Location
- Wisconsin
- Occupation
- PE (Retired) - Power Systems
Until you have been doing it for enough years that they can collect a good amount of back taxes and penalties.Most times the amount is small enough they don't care.
Until you have been doing it for enough years that they can collect a good amount of back taxes and penalties.Most times the amount is small enough they don't care.
A lot of people slide though. Especially regarding the rules on personal use of company owned property that is supposed to be accounted for as income. Now and then though, the IRS nails someone pretty seriously for the violations.Until you have been doing it for enough years that they can collect a good amount of back taxes and penalties.
I thought meals changed to 50%‽ If so have to leave huge tip to come out on the dealyou can also take vacations and deduct many expenses (travel, lodging, meals...) if you happen to conduct any business activity while on that trip.
My one-man Gross is half that, but consistent during pandemic, and 2018 Great Recession. My bank qualified me for a very small 6k PPP.$135k base plus sidejobs that are Arc Flash Studies at $15-50k per year. I'm a Master Electrician and a registered PE, and much of my work is opening panels for Studies. Stay in school I'm 63 and I don't think I'll ever stop doing this work because it's good work and I have fun doing it.
50% is still more deduction than nothing though.I thought meals changed to 50%‽ If so have to leave huge tip to come out on the deal
I don't remember what the amount was but think you need to generally be into at least six figures of net income or something looks pretty obviously out or ordinary for someone in your business/trade before it will normally trigger auditing.A lot of people slide though. Especially regarding the rules on personal use of company owned property that is supposed to be accounted for as income. Now and then though, the IRS nails someone pretty seriously for the violations.
Most people can get by cheating on their taxes a little bit because the IRS just does not care but if your income and taxes are outside of the norms enough, you will get audited and have to prove every nickel.
I thought meals changed to 50%‽ If so have to leave huge tip to come out on the dea
yep. Like I mentioned before, normally the IRS does not much care about someone who cheats the government out of a few hundred bucks in taxes. If they happen to notice they will request you pay but they really don't care much one way or the other. They want to get the serious cheaters more.I don't remember what the amount was but think you need to generally be into at least six figures of net income or something looks pretty obviously out or ordinary for someone in your business/trade before it will normally trigger auditing.
It can possibly cost them more to try to go after just a few hundred dollars than it is worth.yep. Like I mentioned before, normally the IRS does not much care about someone who cheats the government out of a few hundred bucks in taxes. If they happen to notice they will request you pay but they really don't care much one way or the other. They want to get the serious cheaters more.
I did that years ago and it made a big difference. It separated me from other electricians who could not offer that type of work. A bonus is that I would get a call to estimate electrical work and the owner would learn that I do security or networks and I would get that work too. Being diversified has its advantages.Can I chime in here? Think outside the box. Add low voltage to your electrical job. security camera runs, cat 5 /6 runs. Good money at an average of $100 per drop. It's easy to learn to terminate a cat 5.
I had three trucks on the road, one for me, the other with two employees each. Had tons of income but I was a banker, chasing money and worrying about getting work to keep everyone busy and making payroll. After that all ended due to recession, I was back on my own and have been ever since. I never want to go back to that nightmare. I'm earning just as much if not more by myself.I am doing WELL better as a one man show.....
When working for "the other guy" the best I could make in this area (at the time)would be $20-25/hr, or, $800 to $1000 a week before taxes.. After taxes and working on Saturday $700
In a good week working solo service calls, I could earn that in 2days and go fishing the rest of the week.
A LLc tax deductions are.... GAS.. TRUCK... TOOLS.... and lots more.
Having an accountant as a wife is VERY fortunate .
Another contractor once told me never go to more than one crew.. He is upto 4 crews and has trouble making payroll every-now-and-then. His life was also less stressful and more profitable when operating a one-man-show.
I had three trucks on the road, one for me, the other with two employees each. Had tons of income but I was a banker, chasing money and worrying about getting work to keep everyone busy and making payroll. After that all ended due to recession, I was back on my own and have been ever since. I never want to go back to that nightmare. I'm earning just as much if not more by myself.
I believe you will be disappointed as to how much a phone number might not be worth.I'm considering the direction or possibility if capable to sell my book of business when that time comes. I'd like to think my phone number is worth a decent buyout. Anyone out there do this. I'm just a 1 man company these days although fortunately I have a good size list of happy clientele.