*MISTAKES* Business Owners Make When It Comes to TAX Write Offs (End of Year)

[@f5tornadeau]

“If you’re in this bracket, taxes will be going up in the next few years.” Yes, you will be punished for working hard and being successful. Let’s go, Brandon!

[@chrism2042]

I have been in business since 1997 with a commercial/industrial electrical contracting business and then started a engineering business. One of the best business decisions I made was finding a "good" CPA. I can email my CPA with tax questions about a large purchase or investing, she will guide me in the right direction.

[@Area559Duh]

This is what I try to explain to people but they think I’m dumb lol. Nothing is free. You’re a great teacher

[@richardvillanueva559]

Fresno 559 👌🤙

[@Niniandava]

Good stuff. This is really good info for us small business owners. I spoke for all of us. We appreciate your hard work sir.

[@victorramirez7343]

Right Israel I agree hey listen I noticed you are a landscaping business , Im interested in know what city you are based out of ?

[@jonathanallen6681]

Needed this, thank you

[@jeffschweitzer1986]

I hate taxes but thanks for helping this 35 year old understand better. Enjoyed

[@WhiteOakNW]

Best explanation in the industry. Listen to what he says, guys. Don't make the mistakes he's describing.

[@roadtofinancialfreedom2011]

Very helpful!! Thank you for the information. Your book is also amazing! Last year I hired for the first time and tried paying a percentage of the job to my employees as a way to incentivize them. I had no idea what I was doing but knew $/hr was not the way to go. I found your videos this winter and I’m super excited to have a way better plan going into this summer!

[@stevesmith775]

This makes me want to find a new accountant lol I appreciate all the info you give us Mike! Hope you have a happy holiday and get to enjoy some time off

[@shyguy2481]

Just bought a 02 duramax for 30k. Under 40k miles, like new. This video is great. Spreading the depreciation out over time due to this reason. It'll help out more in the future when my income has increased more. Taxes will go up. Tax brackets won't change as fast as inflation as well

[@thelawnsquad]

This is by far the BEST video about business Taxes, Profits and Deductions. Thank you MIKE!

[@kungfury6410]

This is the best explanation of the tax system for business owners I’ve seen. Great job

[@MikeAndes]

Wow, thanks!

[@docterwilliams5532]

You are the man. You made that make plenty of sense

[@barrettskillman3047]

This video was absolutely amazing. Thank you for taking the time to create this content and share the knowledge.

[@jeffbromley73]

Talk about breakin it down, that was an extremely informative 14 minutes, Thank you

[@eriktiner2076]

Great video. Excellent explanation of tax brackets and "write-offs"

[@kylecrisman9230]

Finally someone who knows what they are talking about. Iv told multiple people this and they just look at me like I have 4 eye balls. Yes if I need something for my business I buy it cause I need it yes I write it off But I never buy just to buy. I can’t stand it when someone who has no business says hey you can write it off like it’s free. It ain’t

[@abclawnworks9127]

Awesome Hoodie! Less than one month away!!!! This video is GOLD especially for those that do not really know how taxes work.

[@victorramirez7343]

Do you have a company Instagram??? Bro

[@Charliepoveromo.]

thanks

[@tonyslawncare]

Great advice

[@SCuttingEdgeLawnService]

Great information. I did it for the las two years but this year I’m not gonna do it.

[@RavensHardCore]

Very helpful! Thank you, Mike. 👍

[@ericstinnett9182]

Great video Thanks for the advice I'm going to send this video to my son He doesn't run a landscaping business but he do have a business self-employed Thanks

[@landmarkcreations1183]

Great video Mike!

[@JaymieHall]

You cannot take the standard deduction, and itemize the truck. One or the other.

[@MikeAndes]

The truck would be on section 179 on a Schedule C for an LLC. The standard deduction is on form 1040 and can still be taken in addition to business expenses such as truck

[@JaymieHall]

Thanks for the information. I’ve been told for years that it’s one or the other for single owner LLC because the income is pass through, so using both would be double dipping. I’ll be running this by my Accountant. Thank you for the video and discussion.

[@slowrider30]

Great video

[@80hdcrypto]

Great video Mike! Anybody else catch the “STD” moment? 😂 min 4:32

[@MikeAndes]

As I was writing I was like… why did i capitalize T and D ?!🤦‍♂️🤦‍♂️

[@80hdcrypto]

@@MikeAndes I’m sorry, I’ve rewatched it at least 20 times 😂

[@Frompushmowertoprofits]

Good Stuff Mike!

[@upscalelawncaremonroe408]

Really good stuff!

[@jimmyliu1294]

Wow… the US tax bracket is so low compared to here in NZ..

[@LifeWithChase]

you also save 14.7% self employment tax, plus your state tax rate. If your state has one. say your tax rate is 4% plus 14.7 % =18.7% plus your federal tax rate that you showed... so if you bought the 30k truck in your example, not only do you save 12% federal you save 14.7% self employment plus 4% state tax = total of 30.7% on your 30k truck. That's $9,210 tax savings on a 30k truck so approximately 1/3. the savings increase the higher your income bracket and the higher your state tax rate...

[@LifeWithChase]

self employment tax is now 15.3% not 14.7%

[@tdukes7091]

You're right, self employment tax is the biggest burden at lower income levels. Glaring ommission of this video.

[@Freshstartlawn]

Great info man!

[@AaronsLawnCare08]

Hey Mike Andes. I am a young entrepreneur and mow about 15 lawns. Both of my Honda residential mowers broke down near the end of the season. I was wondering what you think the best brand to buy a commercial 21” or 30” mower from is.

[@MikeAndes]

Any brand that you have a good local dealer for

[@victorramirez7343]

Hey Aaron if your ever looking to expand your landscaping business through additional capitol feel free to contact me I can assist you in obtaining funding up too 500k no credit check and I can help you finance commercial equipment too just imagine what some extra capitol can do for your business it can take you to the next level

[@austindouglas13]

When you were in rapid growth mode did you section 179 purchases?

[@MikeAndes]

Mostly yes. I wish I would have done a little less so that when I hit higher tax brackets a few years later I would have been getting 20-30% savings instead of 10-20%

[@austindouglas13]

@@MikeAndes interesting. I recently reached out to my CPA in regards to making a truck purchase for adding a technician next year. He gave me the green light on doing it and recommended a section 179. My net profit was 44k. Which is very similar to what you just discussed. I have yet to take the deduction obviously, but now I might think of spreading it out.

[@daylightintheswamp9315]

Where’s your self employment tax portion?

[@jkholley1118]

Holy crap! Someone who gets it! I have argued that point with so many fellow business friends. None have listened. What I have seen is people writing off equipment in one year then selling it within a year or 2, but selling it personally and not claiming it as income when they do. Then buying new equipment to write off again! I know because I have bought a lot of it. Boggles the mind really, spend 100% to save 22% then sell it for 50%. Rinse and repeat.

[@richardvillanueva559]

👌💯

[@miguelboisvert7375]

In Ontario if you make over 200k it’s 48%

[@johnedson1708]

Yikes

[@McShibby10]

Lol

[@newlawnottawa7354]

You should buy a single axle Kenworth dump truck like Tigran did 😄

[@victorramirez7343]

Great suggestion man do you have any of your own landscaping videos up I’d like to see ya work ?

[@CarlosGarcia-fy8xx]

I know this is vague but what percentage should you be writing off as a sole proprietor from your yearly income?

[@joemeyer2726]

Follow the law, it’s that simple, use CPA

[@lawnrush3098]

I will say, you kind of got to be proactive. Buying some of the things as soon as you can nowadays. Supply chains... Hard to get stuff last minute!

[@johnhill9910]

How does duel income work when a married couple has one person as a w2 employee and the other is a sole proprietor?

[@MikeAndes]

Your spouse income + the profit from your business (sole prop) will be considered your gross income on your tax return.

[@rodriguezlandscapingservic4346]

We gettin that sweatshirt?

[@MikeAndes]

Yes 👍🏻

[@mrmerhtin3625]

David: Yeah, I'm thinking of bringing home-ware into the store, so that's a write off. Johnny: That's a write off? David: Yeah. Johnny: Do you even know what a write off is?! David: Uh, yeah. It's when you buy something for your business and the government pays you back for it. Johnny: Oh, and who pays for it? David: Nobody, you write it off. Johnny: Who writes it off?! David: I don't know, the govern- The "write off" people! Why are we having this conversation?

[@Montes1997]

It’s not “the hype” for me it’s investing in my business and when I have all the equipment I need then I have no problem writing nothing off and paying taxes but for now 3 years in my new business I’m not paying 10k+ in taxes for them to mismanage my hard earned money. You can literally finance a piece of equipment 0 down low interest and write the whole cost down that’s wiser to me and gives me the rest of the year to pay off the equipment and buy something newer and better and keep doing it till I can write that big check no problem your making it seem bad when it’s really not and so simple.

[@gabrielgarcia-et7cv]

Hey Mike, my name is Gabriel and I've been in the business since I was 9 years old and I'm 21 today. I'm wondering if you went to college for business or something like that. I know I want to run my own landscaping business but I feel like I need to go to business school but I'm not sure. At this moment my dads going to retire in a couple of months and going to leave the business to me which ls about 80 residential properties. I know how to cut yards but I never ran a business and I want to run the business as professional as it can be. I don't know much about the economy or taxes.

[@MikeAndes]

Could you do classes at night AND run the business? Honestly, I made the online course called “MBA for Entrepreneurs” just for people like you. 95% of what you learn in college level business classes is for corporate ladder folks… and not small business. Running the business will give you a lot of education!

[@gabrielgarcia-et7cv]

@@MikeAndes thanks for the feedback and yea I wasn't sure if business school was necessary. Lately I've been educating myself by reading "The professional landscapers handbook" by Greg Micheals and I'm planning to buy"how to price landscape and irrigation projects" by James R. Huston. I recently punched down the business and wrote down all of our properties and services Ect. I'm also working on a website and should have it running by late January but there's times when i feel like I'm not sure what the next step is. Perhaps im just dumb lol but you're like 5x more educated than me when it comes to this tax and revenue stuff that's why I was asking. I'm going to take The course and see wasup, I'm looking forward to completing it.thanks for the opportunity.

[@mikeh1564]

Great explanation. Another argument for having a CPA. A good CPA will tell when to spend money and when to NOT spend money.

[@joemeyer2726]

Don’t let tax tail wag the dog, buy equipment with cash used, rent unless use equipment enough to buy

[@lawnstar1441]

If I give a customer a bill for 2500 for a new sprinkler system install, can i write off materials used in the install?

[@MikeAndes]

Yes. Supplies and materials are write offs.

[@naperville_landscaping]

Excellent video, full of important info that most of the taxpaying public doesn't seem to know! Also, the last presidential administration's Tax Cuts and Jobs Act was partially paid for by raising taxes for those at the bottom end of the tax brackets.

[@shyguy2481]

Another reason to write off is to keep ypur income low for assistance from government. Pay it forward down the road when you are making over 6 figures profit.

[@EtherGaming604]

I'm canadian, would I benefit from a consultation from you as well or are you more geared towards American business? Also, do you do consultations? Lol

[@EtherGaming604]

Im partnering up with my dad. He's been in business for 2.5 years now. He's doing around 300k in revenue but it's almost the end of December and he has zero idea on his profit (I'm not even sure if hes correct on his revenue). I want to have things properly structured bit He's very difficult to convince that proper business practices are correct.... :/

[@MikeAndes]

Hi Taylor, Yes, I do consults if you have very specific something to go over. Most everything is covered for free on youTube or on the course (LandscapeBusinessCourse.com)... The link to book a coaching call is in the description. Also, he MIGHT benefit from LawnCareBookkeeper.com to get his books cleaned up and organized.

[@byronn.2885]

The shame of it is that I’m being forced to buy early this year because I can’t just go buy when I’m ready. All these dang shortages on supplies and equipment have been messing up all my tax strategies.

[@jordanstellinga1188]

As long as you have a bill of sale you should be okay (check with CPA). I wrote off a brand new skid steer ditchwitch this year and I don’t get it/start paying for it until April 2022

[@byronn.2885]

@@jordanstellinga1188 I was looking to do the opposite. I had a new mower on order that I didn’t expect to have to purchase until next year but my dealer called and told me it was available a few days ago. However the manufacturer would only send them a mower if the sale was finalized first. The manufacturer is not even able to produce enough units for my dealer to have stock for their show room. I needed another mower for next season and couldn’t risk it not being available. I have been waiting 6 months for this one so I pulled the trigger even thought there is going to be snow on the ground for the next 3 months.

[@colestaples2010]

This doesn’t make sense. I’ve never been taxed that low.

[@MikeAndes]

You probably live in a state with additional state income taxes?

[@joemeyer2726]

Don’t buy crap until $180k in retirement account for tax credit and tax deferred growth for 50 years

[@MishaDaBear]

Thank god for Capital cost allowance (CCA) of 3 or more years instead of deducting that purchase in one year!

[@willjones105]

Great video Mike !