tax question-tires

Dave from MN · Feb 8, 2014

I know truck tires go under vehicle repairs/expenses, but would tractor tires and implement tires purchased just go under repairs and maintenance as well?

M Nut · Feb 8, 2014

According to our accountant, yes.

Dave from MN · Feb 8, 2014

Thank you, I hate tax time, I am about ready to just do the 'bring it all in and let him sort it out' route, but that has to be pricey

skip33652 · Feb 8, 2014

could go under repairs and maintenance.or could go under capitol outlay or 179. one tire to replace one ruined one would be repairs . eight new ones putting new life in a tractor would be capitol outlay.paul

Bob Bancroft · Feb 8, 2014

Where else would you put them?
However, I do recall years ago putting four new tires on an old Steiger. Tax man was concerned about depreciating them because they may have exceeded some percentage of the value of the machine they went on.

JMS/.MN · Feb 8, 2014

I would typically expense small tires in the year of purchase, under machinery expense, but large rears can be depreciated over multiple years due to the high dollar value. This year I took section 179 on a set of 20.8x38, along with other purchases that have the depreciation option. Next year section 179 is being drastically reduced. That"s why I do a tax planning session with the CPA in early December. It tells me what needs to be done by Dec 31.

rrlund · Feb 8, 2014

I don't know how it's going to go for me this year. I had to find somebody new. My old preparer had been doing it for 20 years or more for me,but she said she was finally going to retire for good. Said she was only doing it for 5 of us anymore and she didn't want to try to keep up with new tax law anymore.

Dave from MN · Feb 8, 2014

Having to ask so many for the social security numbers for 1099's really is a sucky thing as well.

M Nut · Feb 8, 2014

$500 total for our farm, and three separate couples. (me and wife, brother and wife, dad and mom) To us it is worth it......

Dave from MN · Feb 8, 2014

really, I pay $440, and I bring every thing all itemized and layed out and totaled in each expense category, do it with all income too, in excel spreadsheets. I think I need to find another one

rrlund · Feb 8, 2014

You guys are scaring me. I didn't ask what the new one charges,but the old one has been charging me $175.

Anonymous-0 · Feb 8, 2014

Just remember cheap isn't always better. Several years back I had a guy doing mine that was real reasonable. I had kind of a complicated return one year and my lawyer suggested a different accountant. Was probably about triple on price, but was well worth it. Cheaper guy had been costing me a lot of money over the year's, and he dealt in a lot of farm returns. Still am using the more expensive one.

Frank 41 · Feb 8, 2014

When we started farming, we went to the same accountant as my dad. We had all of our figures totaled and ready. My dad took in a SHOEBOX ever so often. They charged us more than him. Plus the guy was telling us about the previous guy's business. Then he said we should be buying a new car instead of used since we were making this kind of money. ADIOS!

Anonymous-0 · Feb 8, 2014

Agree that seems high. Mine charges $150. She provides a summary sheet that takes 45 minutes to an hour to complete. But the farm book is sent along with that summary and she back checks everything, so it does require some effort on her part. I could do it but the $150 gets her name on the return, pays for her representation at any tax audit and I believe it includes paying any late penalty which results from her mistake.

JD Seller · Feb 8, 2014

Large tire expenses go on your depreciation schedule. They can cause a red flag under annual repairs.

As for the tax preparer cost. The guy we use is a true tax attorney. My return usually costs right around $750. This is my personal, personal trust and the trucking business. Plus all my 1099s too.

I was audited once. When the IRS fellow found out my tax guy was a full attorney he pretty well quit digging for anything.

Paul from MI · Feb 8, 2014

You guys are all getting by on the cheap. My tax preparer is a CPA, and does mine for free. Of course, he's my son and when you factor in the cost of putting him thru college????

GordoSD · Feb 8, 2014

I assume you keep daily records in many categories for the year Like, seed, pesticides, fuel and lubricants, parts,repairs, and so forth. All in one file on the computer.
At the end of the year add up the costs column, and print it out.
This will speed up your preparer's work and be your permanent record for annual expense. You DON't send this to the IRS, just the category expense total. They will never have a chance to go through each category looking for "errors"
In event of an audit you would of course produce this itemized list.

Pops1532 · Feb 8, 2014

I don't know why any business person would do their own taxes unless they were an accountant or tax lawyer.
We have two businesses and our accountant only charges $250. As far as I'm concerned it's money well spent.

JMS/.MN · Feb 8, 2014

Dave- I"ve recommended this to you for a year or two- call Conway, Deuth, & Schmiesing in Sartell- just north of the Coborn"s Cancer Center in Sartell, on Connecticut Ave. I"ve dealt with their Willmar office for 26 years, I do the Dec planning each year. You"re obviously on a computer with spreadsheet, I"ve used the MN Farm Acct Book for 41 years- hand entry....we both submit totals for various categories.

I know they save me way more than what they cost. They tell me they like to be "aggressive" in their tax policies. I have never been audited since going with them. Couple years ago we sold some land to our son. A question came up at closing. I said- call up Mark O at CDS.....got an instant answer, right on the mark. I told the closing agent, "that"s why we pay them the big bucks". It"s worth it. Doesn"t cost anything to find out.....My renter switched to them a couple of years ago.

JMS/.MN · Feb 8, 2014

Dave- google them!

Mike in Mn. · Feb 8, 2014

Thats where I put them.

tax question-tires

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Well-known Member

Member

Similar threads