# Write offs and such



## Gallden (Nov 28, 2013)

Looking for some write offs or loop holes, nothing illegal or anything just maybe some less obvious ones?


----------



## brickhook (May 8, 2012)

Get yourself a good CPA. Pretty much everything seems cut and dry, but a good CPA is worth their weight in gold.


----------



## Lugnut1968 (Dec 11, 2014)

brickhook said:


> but a good CPA is worth their weight in gold.


Reckon I need to go find a 600 pound CPA then :thumbup:


----------



## Dave in Pa (Oct 10, 2009)

Gallden said:


> Looking for some write offs or loop holes, nothing illegal or anything just maybe some less obvious ones?


My question is "why are you asking?" As stated a good accountant, CPA, (sorta same there!) tax preparer, finance advisor, should have the CURRENT, updated info in the computer for this, to get the correct returns filed, with the correct info, they have from you!

And they should be able to give the info from day #1 as per what you need to give them as for the info, receipts, pay-roll, rent, insurance, etc.!


----------



## rselectric1 (Sep 20, 2009)

Get a CPA. *Just the depreciation expense* they know how to do correctly will help offset the expense of having one, and peace of mind in knowing it was done right.....and if not it's on them.


----------



## JBM (Mar 31, 2011)

have you maxed your retirement contribution?


----------



## pcplumber (Oct 12, 2008)

Make getting tax write-offs fun and have lots of children!


----------



## Spencer (Jul 6, 2005)

pcplumber said:


> Make getting tax write-offs fun and have lots of children!


I think that was my father in laws theory....he had twelve.


----------



## Spencer (Jul 6, 2005)

Section 179 is the biggest one for the past year. Not sure if they will keep it for 2015. Probably won't know until december again.

Get a good CPA. Its worth it.


----------



## Inner10 (Mar 12, 2009)

Spencer said:


> I think that was my father in laws theory....he had twelve.


I'm betting that wasn't the first thing on his mind while he was making them. :laughing:


----------



## The Coastal Craftsman (Jun 29, 2009)

What exactly are you guys paying your CPA to do your books. Our Familey pays about $7k a qtr on theirs but they do vastly more money than me. My other mate pays $600 a qtr on his and does about 5x my volume and my other mate does about $1200 a qtr and he owns a fast food outlet. 

Them figures seem high but if I'm gonna be paying 1/5th what my friend does then if I'm paying $500 a year then he might be able to save me that much a year.


----------



## rselectric1 (Sep 20, 2009)

I just looked on QB and I paid $1217 last year between my book keeper who does all payroll and quarterly returns, etc. , and my CPA who does my annual filing.


----------



## Calidecks (Nov 19, 2011)

Yep, I pay 1800 per year


----------



## BamBamm5144 (Jul 12, 2008)

$500 a year but I do all my payroll, federal taxes, state taxes, quarterlies, etc...


----------



## overanalyze (Dec 28, 2010)

Looking for write offs usually happens in the 4th quarter after a year end planning meeting with your CPA, not the first quarter...just saying.

We average about $3,000 a year to our CPA. That is for all payroll, quarterlies, year end planning, and personal returns. That is for two companies.


----------



## Gallden (Nov 28, 2013)

We do have a CPA that we use, I'm just looking for less obvious stuff? Like writing off materials that aren't used things of that nature...


----------



## kiteman (Apr 18, 2012)

Look up Domestic production activities deduction. I bet a lot of people miss this one.


----------



## Gallden (Nov 28, 2013)

Kiteman stuff like that is what I'm talking about!


----------



## Spencer (Jul 6, 2005)

kiteman said:


> Look up Domestic production activities deduction. I bet a lot of people miss this one.



I've got a tax meeting tomorrow. I'm going to ask my cpa if it applies to me.


----------



## kiteman (Apr 18, 2012)

......


----------



## The Coastal Craftsman (Jun 29, 2009)

Spencer said:


> I've got a tax meeting tomorrow. I'm going to ask my cpa if it applies to me.



Spence let us know how it goes. I'm curious if I'm able to use this too and I don't currently have a CPA.


----------



## Spencer (Jul 6, 2005)

BCConstruction said:


> Spence let us know how it goes. I'm curious if I'm able to use this too and I don't currently have a CPA.


Will do. :thumbup:


----------



## kiteman (Apr 18, 2012)

Spencer said:


> I've got a tax meeting tomorrow. I'm going to ask my cpa if it applies to me.


 You must have some W-2 wages for it to apply, even if they're your own. The deduction is basically a 9% reduction of profit. My state does not recapture this so it's federal and state both. 

Domestic Production Gross
Receipts (DPGR)
Generally, your gross receipts
(defined below) derived from the
following activities are DPGR.
1.
Construction of real property
you perform in the United States in
your construction trade or business.
2.
Engineering or architectural
services you perform in the United
States in your engineering or
architectural services trade or
business for the construction of real
property in the United States.
3.
Any lease, rental, license, sale,
exchange, or other disposition of the
following.
a.
Qualifying production property
you manufacture, produce, grow or
extract in whole or in significant part in
the United States.


----------



## Spencer (Jul 6, 2005)

kiteman said:


> You must have some W-2 wages for it to apply, even if they're your own. The deduction is basically a 9% reduction of profit. My state does not recapture this so it's federal and state both.
> 
> Domestic Production Gross
> Receipts (DPGR)
> ...


Thats a bummer. I went through this year as a sole proprietor so no W2. This year I will being that I formed an LLC and will be filing as S-corp. 

I'll still ask but it sounds like it probably won't apply to me.


----------



## kiteman (Apr 18, 2012)

I should clarify the language a little after rereading it. You must have _paid _ W-2 wages to qualify.


----------



## Spencer (Jul 6, 2005)

kiteman said:


> I should clarify the language a little after rereading it. You must have _paid _ W-2 wages to qualify.





BCConstruction said:


> Spence let us know how it goes. I'm curious if I'm able to use this too and I don't currently have a CPA.


Just got back from my tax meeting. Kiteman is correct. My tax man said it did not apply to me this year but would next year being that this year i was a sole proprietor vs llc for 2015.

BCC if you're an llc it might apply to you. Definitely worth checking out for 9%. Dang...


----------



## The Coastal Craftsman (Jun 29, 2009)

Spencer said:


> Just got back from my tax meeting. Kiteman is correct. My tax man said it did not apply to me this year but would next year being that this year i was a sole proprietor vs llc for 2015.
> 
> BCC if you're an llc it might apply to you. Definitely worth checking out for 9%. Dang...



Thanks spence I will look into it some more.


----------



## kiteman (Apr 18, 2012)

When I first found out about it I filed amended returns for the 3 previous years. I got about a $1500 refund.


----------



## overanalyze (Dec 28, 2010)

I just called our accountant about this. Because we are an s-corp we have been using this deduction. Didn't even know about it and we have been taking advantage of it. Just goes to show that a good cpa will save you money.


----------



## TNTRenovate (Aug 19, 2010)

One thing that you can do is sell your tools and equipment to the company. The company then pays you back over time (weekly, biweekly) until the debt is paid. Since the tools were purchased with taxed income, the loan is not taxable income.

Draw back is the company now owns all of your personal tools and equipment and debts could be collected using those as payment.

That's how I paid myself for the first year and a half.


----------



## Spencer (Jul 6, 2005)

TNTSERVICES said:


> One thing that you can do is sell your tools and equipment to the company. The company then pays you back over time (weekly, biweekly) until the debt is paid. Since the tools were purchased with taxed income, the loan is not taxable income.
> 
> Draw back is the company now owns all of your personal tools and equipment and debts could be collected using those as payment.
> 
> That's how I paid myself for the first year and a half.


Good idea. I might do that. Anything to avoid the tax man.

I'm also setting up a rent payment to myself from my LLC for use of my garage/shop.


----------



## The Coastal Craftsman (Jun 29, 2009)

Spencer said:


> Good idea. I might do that. Anything to avoid the tax man.
> 
> 
> 
> I'm also setting up a rent payment to myself from my LLC for use of my garage/shop.



I asked about this a little while back and they said as long as your area has the correct zoning you can do that. Mine don't and that means I'm not allowed to run a business from home. I'm not even meant to keep my trailer in my drive or on the street. I was gonna build a workshop in back yard but didn't after I found this out too. Couldn't write the thing off.


----------



## TNTRenovate (Aug 19, 2010)

BCConstruction said:


> I asked about this a little while back and they said as long as your area has the correct zoning you can do that. Mine don't and that means I'm not allowed to run a business from home. I'm not even meant to keep my trailer in my drive or on the street. I was gonna build a workshop in back yard but didn't after I found this out too. Couldn't write the thing off.


Not quite the same here but close. The formulas for calculating were ridiculous and I would have to claim the rent as personal income.


----------



## pcplumber (Oct 12, 2008)

Gallden said:


> We do have a CPA that we use, I'm just looking for less obvious stuff? Like writing off materials that aren't used things of that nature...


I would think that materials you don't use is a capital gain.

How do you find a good CPA?

You ask him how much 2 + 2 is and he answers with, "what do you want it to be."

I only use a CPA and would never use an accountant nor a book keeping service.

The other thing I do is tell every tax agency to speak directly with my CPA and every audit is at my CPA's office without my being present.

While it makes sense to plan for write-offs, I never did any planning nor do I look for things to write off. I think that is because if I have some sort of depreciation, or whatever, my CPA automatically takes care of my write-offs. I don't have a mortgage on my business property and I purchase very cheap vehicles at auctions. So, I don't spend a lot of money where I have to worry about depreciation.

I think the three things the IRS goes after people for is claiming more children that people have, claiming children two times when parents are divorced and B.S. write-offs even if they are allowable.

But, it does make sense to get whatever write-offs you are entitled to.


----------



## TNTRenovate (Aug 19, 2010)

pcplumber said:


> I would think that materials you don't use is a capital gain.
> 
> How do you find a good CPA?
> 
> ...


When will you learn what a capital gain is? There has to be a capital investment (property, stock, bond....), it's not materials purchased for a job.

Aren't CPA's accountants? Certified Public ACCOUNTANT. So how can you not use an accountant but use a CPA?

And the IRS go after businesses every day.

To the OP, it's terrible advice to tell you to not worry about write offs or if your accountant is treating your right by taking advantage of everything that they can.

Just like in our business I educate myself to the degree I feel comfortable with. Leaving your future to others with no knowledge is a bit dangerous, borderline reckless.


----------



## griz (Nov 26, 2009)

In 1975 my accountant told me that I could find any number of accountants to be more creative with write offs etc....

But, then she said if "WE", yes we, get audited, I can prove anything the IRS wants to see....

Audited once. Did not owe the IRS a dime....:thumbsup: 

She is retiring after this year.....dam.....


----------



## Calidecks (Nov 19, 2011)

Yep, I told my accountant if there's anything questionable at all I'll just pay it. I said always err on the side of not getting audited. I don't even write off my home office.


----------



## tedanderson (May 19, 2010)

Gallden said:


> Looking for some write offs or loop holes, nothing illegal or anything just maybe some less obvious ones?


1. Gambling losses including lottery tickets.

2. Using your personal vehicle for charity or volunteer purposes.. e.g. school events or church functions.

3. Business lunch meetings. Even if you take your crew out to eat or buy a stack of pizzas, chances are that you've discussed something work related which would qualify as such. 

4. Costs associated with washing your work clothes or getting a suit dry-cleaned if you use it for business meetings, interviews, or estimates. This also includes any repairs or alterations.

5. Broken tools that you had to replace.

6. Injuries on the job that required medical attention.


----------



## TNTRenovate (Aug 19, 2010)

tedanderson said:


> 1. Gambling losses including lottery tickets.
> 
> 2. Using your personal vehicle for charity or volunteer purposes.. e.g. school events or church functions.
> 
> ...


#3 only 50%. And mentioning work doesn't count. It had to be a work related lunch. 

#4 only if the clothes are required and if they are not suited for normal wear. This is mostly uniforms. If you wear jeans and a t-shirt you cannot deduct the cleaning expense. 

#5 usually only if the tool breaks within a year of the date of purchase.


----------



## jlsconstruction (Apr 26, 2011)

So I should just break my tools once a year?


----------

