Initial Start-up Writeoffs

[Phoenix4774]

Hi,

I am going to try to get signed on with a fleet owner and expedite otr. Will I file the 1099 still? I am wondering if I could buy a GPS and other supplies now for my future work and write them off as expenses? Can one do this; should wait to get signed on first? Thanks.

 

[nightcreacher]

you better wait til you find someone to work for.they might already have gps,or cb radio.
as far as a right off,all you spend having to do with your work can be a right off

 

[Fkatz]

Nightcreacher explained the correct senario.

Do not purchase anything until you are ready to go on the road with a contractor.

the main reason is that the item might already be installed in the vehicle.

Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934


Providing Professional Accounting Services and Income Tax Preparation

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.

 

[dok407]

Slowly but surely building a fleet... Every penny of my startup came out of my pocket. (usual small business scenarion) Which of the following would be the most simple and legal avenue with buying used trucks to reimburse myself:

A. - Have the company buy the truck. Keep all the receipts and itemize. Risk paying income tax on compensation.

B. - Put the truck in my name first while I fix it up, then sell it back to the company for a price that is more accurate to the time, parts, etc invested.

C. - Say the @#$%^#$%^#$% with it all and buy new? (Sillyness aside... Answer C is just a repeat of A since the money is still coming out of my wallet until we get some capital set aside)

D. - ?!?!?!?!?!?

Thanks for your time!

 

[greg334]

Talk directly to a professional, accountant or an EA may be the best ones or even Frank and get advice about what structure you need to form, if you even need to have a company and how you will run it based on your goals and what your situation is.

DO NOT ASSUME the line that incorporating (corp, s-corp, llc) will save you money or protect you, the latter is not always possible because you are also the operator or direct control of the operators.

THIS is important because you want to lessen your tax liability while still limiting your legal liabilities. You will pay taxes, but how much and why matters.