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  1. #21
    Join Date
    Sep 2012
    Location
    AZ
    Posts
    46

    Default

    Quote Originally Posted by JTMcC View Post
    No, Uncle Sam allows you to pay for your equipment with pre tax dollars. Big difference there.

    J
    Yes, of course.

  2. #22
    Join Date
    Feb 2010
    Location
    YOUNGSTOWN, OHIO
    Posts
    172

    Default

    Quote Originally Posted by Hardrock40 View Post
    Here is what happens when you try to start up a legit business.

    You buy equipment, more equipment, advertise and more etc.

    You file your taxes, assets / cost are deprecated but over a few or more years while also buying more equipment. You show a lose because you didn't make more money than you spent, so the deprecation amount is more than you made.

    Three years of this shows your not a legit business but more of a hobbyist. Tax man says close the business, but keep trying and if you make money you have to reopen the business and pay tax.

    What the he##, what if I make less than the deprecation of the assets plus the stuff I'm still buying? I can't keep showing a lose but I must pay tax because I made money???

    The way I look at it, is keep everything,, receipts. Make money but until you can make enough to pay tax on which is over what your cost deprecation are, you can't call it a business. TAX man don't call it a legit business until you can pay tax on it.
    Have you ever run a business??
    Have you ever filed your own taxes on a business if you ran one??
    By your comments I don't think you have on either question therefore how can you give advice???
    Not trying to be an a@$, but what you said made no sense.
    JIM

    Owner Operator of JNT Mobile Welding & Repair LLC
    Millermatic 350P Aluma Pro
    Dynasty 200DX
    Maxstar 150 STL
    Trailblazer 302
    Suitecase 12RC
    Extreme 12VS
    Extreme 8VS
    Spoolmatic 30A
    Miller HF251D-1
    Passport Plus
    Spoolmate 100
    Hypertherm Powermax 45 and 85
    Ingersoll Rand Engine Driven Compressor
    Dake 75 ton H-Frame Press
    JD Squared Model 32 Bender
    Miller Digital Elite

  3. #23

    Default

    Quote Originally Posted by Arizona Joe View Post
    Yes, of course.


    Well it's a shame, because if the govt bought my equipment I'd have a monster truck, a helicopter and a main battle tank parked in the front yard, all with a welding machine tucked in somewhere of course : )

    J
    Some days you eat the bear. And some days the bear eats you.

  4. #24
    Join Date
    Sep 2005
    Location
    northern NJ
    Posts
    1,825

    Default

    Quote Originally Posted by JTMcC View Post
    Well it's a shame, because if the govt bought my equipment I'd have a monster truck, a helicopter and a main battle tank parked in the front yard, all with a welding machine tucked in somewhere of course : )

    J
    The government will not buy your equipment if you are a hard working business owner. However it is free if you are one of the following.

    Don't like to work or work hard at doing nothing, are not here legally, can have a baby every 9-10 months, have a really stupid idea to qualify for the study of something, etc.
    MM250
    Trailblazer 250g
    22a feeder
    Lincoln ac/dc 225
    Victor O/A
    MM200 black face
    Whitney 30 ton hydraulic punch
    Lown 1/8x 36" power roller
    Arco roto-phase model M
    Vectrax 7x12 band saw
    Miller spectrum 875
    30a spoolgun w/wc-24
    Syncrowave 250
    RCCS-14

  5. #25
    Join Date
    Feb 2010
    Location
    YOUNGSTOWN, OHIO
    Posts
    172

    Default

    Quote Originally Posted by MMW View Post
    The government will not buy your equipment if you are a hard working business owner. However it is free if you are one of the following.

    Don't like to work or work hard at doing nothing, are not here legally, can have a baby every 9-10 months, have a really stupid idea to qualify for the study of something, etc.
    I will have to second that.
    JIM

    Owner Operator of JNT Mobile Welding & Repair LLC
    Millermatic 350P Aluma Pro
    Dynasty 200DX
    Maxstar 150 STL
    Trailblazer 302
    Suitecase 12RC
    Extreme 12VS
    Extreme 8VS
    Spoolmatic 30A
    Miller HF251D-1
    Passport Plus
    Spoolmate 100
    Hypertherm Powermax 45 and 85
    Ingersoll Rand Engine Driven Compressor
    Dake 75 ton H-Frame Press
    JD Squared Model 32 Bender
    Miller Digital Elite

  6. #26
    Join Date
    May 2013
    Location
    East Tenn
    Posts
    148

    Default What Should I charge people?

    ^^ they will give you a free cell phone too. :-)

  7. #27
    Join Date
    Dec 2007
    Location
    Los Angeles
    Posts
    2,835

    Default

    Quote Originally Posted by Hardrock40 View Post
    Here is what happens when you try to start up a legit business.

    You buy equipment, more equipment, advertise and more etc.

    You file your taxes, assets / cost are deprecated but over a few or more years while also buying more equipment. You show a lose because you didn't make more money than you spent, so the deprecation amount is more than you made.

    Three years of this shows your not a legit business but more of a hobbyist. Tax man says close the business, but keep trying and if you make money you have to reopen the business and pay tax.

    What the he##, what if I make less than the deprecation of the assets plus the stuff I'm still buying? I can't keep showing a lose but I must pay tax because I made money???

    The way I look at it, is keep everything,, receipts. Make money but until you can make enough to pay tax on which is over what your cost deprecation are, you can't call it a business. TAX man don't call it a legit business until you can pay tax on it.
    Technically you can't do that because the " legit" part pertains to the tax credits they give you. So... If you make money, actually Charge , they don't really care if you make money- you are taxed on that transaction. Not immediately like a sales tax you see at a store but it is there floating in the ether of accounting to come due at tax time.
    In very basic lingo ... At the end of the year you add up all yer money and then figger out what you owe on that income. You get to deduct all of your business expenses towards that dollar amount which reduces your total income which reduces what you then owe the gubment .
    They give you a 5 year window for start up because there are more expenses during start up which can affect your income in to the red. This gives you a zero tax payment.
    Hobby Loss Rule of Thumb. If a business reports a net profit in at least 3 out of 5 years, it is presumed to be a for-profit business. If a business reports a net loss in more than 2 out of 5 years, it is presumed to be a not-for-profit hobby.
    They give you options on how you wish to offset big ticket items but after 5 years if you keep showing a loss then they'll climb up your arse and ask WTF? You can't keep buying equipment and supplies forever and not make any money.
    Ed Conley
    http://www.screamingbroccoli.net/
    MM252
    MM211
    Passport Plus w/Spool Gun
    TA185
    Miller 125c Plasma 120v
    O/A set
    SO 2020 Bender
    You can call me Bacchus

  8. #28
    Join Date
    Dec 2007
    Location
    Los Angeles
    Posts
    2,835

    Default

    Another thing about the Hobby thing is that if the IRS decides that it is in fact a hobby you the owe them all of the tax money you didn't pay for those 3 years because you were calling it a business.

    😁
    Ed Conley
    http://www.screamingbroccoli.net/
    MM252
    MM211
    Passport Plus w/Spool Gun
    TA185
    Miller 125c Plasma 120v
    O/A set
    SO 2020 Bender
    You can call me Bacchus

  9. #29
    Join Date
    Sep 2012
    Location
    AZ
    Posts
    46

    Default

    Quote Originally Posted by JTMcC View Post
    Well it's a shame, because if the govt bought my equipment I'd have a monster truck, a helicopter and a main battle tank parked in the front yard, all with a welding machine tucked in somewhere of course : )

    J

    What I wrote was,

    "This depreciation comes off the top line along with a whole bunch of other expenses thereby reducing your taxable bottom line. In essence Uncle Sam will pay for your equipment. "

    I thought it was clear that the money came from savings in taxes... unless you take the sentence out of context.

  10. #30
    Join Date
    Dec 2007
    Location
    Los Angeles
    Posts
    2,835

    Default

    Quote Originally Posted by Arizona Joe View Post
    What I wrote was,

    "This depreciation comes off the top line along with a whole bunch of other expenses thereby reducing your taxable bottom line. In essence Uncle Sam will pay for your equipment. "

    I thought it was clear that the money came from savings in taxes... unless you take the sentence out of context.
    It was clear- jt was funnin' with the tank stuff
    Ed Conley
    http://www.screamingbroccoli.net/
    MM252
    MM211
    Passport Plus w/Spool Gun
    TA185
    Miller 125c Plasma 120v
    O/A set
    SO 2020 Bender
    You can call me Bacchus

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