Im a pipeline welder and this is my 1st year. What all do yall use for write offs now that it is tax time. ie fuel, truck, tools. I was just wondering what all was eligible. Also I got a 1099 from a company that was supposed to be giving us split checks and its all split on the stub. But they still sent a 1099 for my truck and we were only making $14/hr what should i do about this.
Hire a good tax accountant to do it for you. They will know all of the ins and outs. It is worth every penny you spend for them and their fee is a deduction
Hey cactus im sending my stuff to a cpa but i am confused on what i can write off the cpa said i can writeoff just about everything and then someone else said since im a helper i can't who do i listen to? What do you think about it
Well a CPA or Tax preparer is certified by the IRS. Once they finish your taxes they have to sign it and put their # on it. If it turns out to be wrong they are in trouble with the IRS. So, I tend to listen to my accountant. It doesnt matter what position you have , be it Welder or Helper, or Shoe Shiner. If you have to spend money to earn money then it is deductible. Many welders seem to think thet know tax laws.( I used to think I did as well) I believe if they knew them as well as some think they do then they would be in the Tax buisiness. I have a full time accountant who works for me and I have never had a problem since I started with her. Alot of the guys who work for me use her as well. She charges them $500.00. It is well worth it. She understands the Industry we are in very well. She worked for me in Brady and knows first hand what we do. I am not in any way trying to get her biussiness But,if anyone wants her Let me know
(hey Joey)I wish the water mills where i get my drinkin water gave out receipts i'd put that in too , you should use everything from clothing ,to your fuel, rent, food ,etc...my acct.'s husband is a contracter ,he builds all types of fences ,but right now more of the deer proof fences ,& she knows what it's like to be contracted out & what expenses to use so she's really fair & tries to get everything she can for us, got $25.00 from uncle sam last year /pd. her 500.00 I was happy considering what i had made..moral of the story is like cactus said if you spend to earn then you should be able to deduct..
When I was a helper, I was not able to right off my expenses. I was told that you have to spend over $10,000 in expenses first. Because per diem is tax free and paid to cover hotels, etc, you cant use any hotel bills, rv park bills, etc as an expense. As a helper you wont be abe to show that it cost you over $10,000 to actually go to work. I am not an accountant so dont take my advice as the gospel, but im sure thats the case.
Well that was proly way back in the day. . . Lol! Well if thats the case i bought two fifth wheels totaling over $50,000 and can write my truck off, and bunch of other stuff plus i worked 3 jobs this past year with no per diem and had to drive from shop to the jobsite in my truck...
Pipelinetrash, once again, Im no accountant by any means, but at best I think you will only be able to write off the sales tax on your campers.
Ford, Like anything else ask the old timers you work with who they use,a GOOD CPA that knows the industrie will get you every penny you deserve in write offs worth every dime you pay them. IMO PS GO STEELERS AND PENS.
I've always been told if you need it for work you can write it off. I.e. phone bills, gas, tools, truck, insurance, ect. works for me.
And remember what ever you pay a CPA to prepare your taxes is also deductable!
I know as far as fuel goes you can either write off fuel or mileage but not both. It's an either or thing. I think mileage was up to .52-.58 cents per mile so with the 15-20k I put on my truck last year probably a sure bet for mileage. Your cpa should be able to let you know the best route, the other thing is you can't switch back and forth each year, at least that's what I have been told.
As far as tools, they are an expense needed to do your job and make money. I've also heard your allowed $600 a year for cloths since employed by yourself you have to supply your own destructive clothing. Vehicle/business insurance, truck payment, cell phone, at home office if you have one, a good cpa will take care of everything.
If you choose to go the mileage route which i have done in the past you CANNOT write off oil changes,truck payment,truck insurane or any kind of maintence you do to the truck just the mileage that is it. 1 year i wrote of 24,000 in mileage alone and another 34,000 in supplies it was a good year i only ended up paying in like 4,000.00
Hey Shad, Would you like to take a guess at my write offs this year ? HINT: it's a bunch
ummmmmmmm hmmmmmmmmmmmmm 3-400,000
sorry i forgot about the car you bought lol
Thats is my wifes. I didnt even get to count it
yeah i know jus pickin on ya
rods gases and wires are consumables 100% write off just make sure you have a reciept for everything you write off and hold onto them for the next 5 years
While any paid tax preparer could do Your taxes, a CPA familiar with Your line of work knows better what to ask You for, and knows what might be a "red flag" to the IRS. I had a few small businesses years back & did My own accounting. IT WAS NOT WORTH THE HASSLE.
Good point Dave, I asked a friend who did his accounting once and he said he could give me his name but he mainly took care of the farmers in the area, may not be the best choice for a welding business.
I agree with Dvae it is a real pain in the neck but looks like this year i'll have to do my own again it's a money issue hell i only made 24,000 last year anyway wodering how i made it with all the bills i had but i did this year god willing i'm hoping to spank em for a good 150,000 we'll see it aint looking to good i got zero for january hope something breaks soon
It isn't so bad if You can follow what was done in previous years.
When I did Mine I was using IRS "Tax Guide for Small Business" and trying to figure out where I fit in with the examples in the book. The laws were different, More things had to be depreciated over time.
dont really think it would be worth it for me to hire a cpa this year my grand total for the year was 24,000 not alot i know but remember i was out of the game from mid march to around mid november. But, i will check into it
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