Quote:
Originally Posted by 67ZL1
Accountant says we need some write offs for next year.
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I wouldn't advise just running right out and adding significant expenses like a fleet vehicle, vehicle related expenses so you can spend the $ 100,000 to claim back and POCKET the $20,000 in "write offs?" You still spent $80,000 of your potential net profit and you just signed yourself up for a long term finacial expense like lease/finacing payments, insurance, vehicle related expenses ect - and your bank guy will expect his payment on time, every month, and doesn't care if you are profitable and times are good or if you are struggling as a business.
My accountant would tell me not to take on any expenses that you don't need to take on, under any circumstances, unless you need that item/truck/equipment.
He would say Just don't spend the $ 100,000 on the vehicle and maybe PAY ALL THE TAXES and enjoy the $70,000 in profits your left with.
Keep in mind write offs only reduce the net income used to calculate your income/business tax - it's not free money. It's like spending 10 bucks to get back 2 dollars.
If you need the truck(s) to do the work then get them if they will make you some money - but be very clear about what a "write off" is or does for you.
My advice anyways ...