Solo Guys & Expenses


#21

i didn’t because that’s a personal expense since i’m using my personal vehicle so it’s not a business deduction, i’m probably going to get about $5,000 - $6,000 of deduction personally for my vehicle


#22

I believe the irs goes only by mileage , not gas, maintenance and repairs on work vehicle


#23

You can do one or the other if your vehicle is over 6400 lbs I believe. Even if you do mileage, you can guesstimate the cost based on mileage travelled and average mpg.


#24

the milage rate is .545 per mile so if you drive 10,000 miles you can deduct $5450 or if you think your itemized cost will be higher you can itemize


#25

You guys have me thinking now , I’m gonna ask my cpa


#26

I love you… lol. That’s all I could think when I finished reading your entire post!!

Thank you so very much.


#27

Lol. You using a personal vehicle for a business purpose doesn’t mean you expense it huh? Good luck with that.

ANYTHING that I can expense on my business, I DO. You know you can expense MANY things, right? IF you read books for your business, you can write those off too.

I use the cell phones I have for business and personal. Guess what? I write them off too.

It’s no wonder so many businesses fold up. Some guys don’t understand their write offs, probably because they are too cheap to pay a good CPA to tell them WHAT they can write off.

No, I didn’t write all that to be “mean” or “judgmental”. It just amazes me that there are people in business, and they don’t understand the basics of owning their own business. Like it or not, your books are the backbone of your financial health of your business.


#28

Agreed. ANYTHING you buy or use to help make the business more profitable- be it a book, cell phone, boost, socks, business uniform. Partial vehicle usage, or heck I use my entire garage for business… that square footage, WRITE OFF! printer ink and paper, computer or cell phone software apps!!

My sons birthday party, Christmas…

Okay yes I bought my kids window cleaning gear for Christmas, sue me, better yet, hire us!!! Lol


#29

you have a bad habit of not reading what people write.

my car expenses are not a deduction on the business k-1, but rather a deduction on my personal taxes


#30

see there’s one example of the wide range of business expenses one will find:

car expenses as a deduction on Sole Prop personal taxes vs a V-10 dually with a 100 mile service radius in an S-Corp

All write off means is what a business is expensing, it’s like saying “the more you buy the more you save!”, one needs the cash in the first place, no one just burns money at 100% to save the 15% tax on that amount

a write off of $X just means you don’t get taxed at the personal % rate for $X, sometimes folks think they are subtracting $X from the taxes they owe (a note to those unaware not to those who posted) and go buy the $80K Raptor lifted truck lol

As mentioned, compared to working a 9-5, yes there are “crossover expenses” mobile phone, truck, truck ins, gas etc that one would have anyway if an employee elsewhere

the point is if one is using these things in business, they are a business expense, reducing taxable revenue

business expenses reduce taxable revenue, that’s all, business 101, no magic or hocus pocus there

if a sole prop though watch out, there’s the Soc Sec “matching” tax of pretty much an additional 15%+ tiered by income, nasty stuff, S-Corp is recommended for full-timers, and a real good tax man


#31

I aim for $40+ gross an hour. Shocking? I live in a low populated rural area. Many tell me I am too expensive.
I am retired, 71, working solo, washing windows part-time, to supplement meager SS checks. I do not personally need a smart phone, but, I have a basic smart phone. Living in a low populated rural area, I can ask clients to send me pictures of their residence, and I can save on driving 50+ round trip miles to just give them an estimate. So I do write off my cell phone as an expense. Most advertising is on FaceBook, but I do not list internet as an expense. I do write off driving expenses, several clients are over 50 miles one way, most are 10-50 miles round trip.
My vehicle is a rusted out 20+ year old F-150.