tax question with small personal buisness

[sixt5]

im in the process of opening a small buisness (sand blasting and powder coating) out of my garage but wanted to know at what point (income wise) is it to show the income on your taxes? I could write my oven, blast cabinent, power,stripper,ect off but if its just going to cause me to get less back then theres no use.

$5k?
$10k?

 

[UFGatorGuy20]

I'm not quite sure what your question is?

Are you asking at what point you need to report the income on your taxes? Legally... the moment you make one cent. I'm assuming this is going to be a "side-job" and not a formal corporation or something...

 

[jliddle]

IIRC, the % off write offs you get back depends on the gross income for the year.

For example if I owned my own business and it made 50k last year. If I bought a 60k dollar truck for business use, I couldn't write the whole truck off in one year but rather a certain percentage of the truck over a few years


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[sixt5]

if i only made about 5k in on year, then would it be worth it to file?

 

[FL-Orange]

You have to file over $600 IIRC.
Equipment writeoffs are usually a 1 time amount or a percentage for a set number of years.
There are specific rules regarding vehicles and specific things that can be written off. If you go one way you may not be able to claim the other way. (gas vs. maintenance).
You may be able to write a portion of your house off as well as services (internet, phone). This is usually based on the percentage of your house that you do the work in.
You should really consult an accountant.

 

[sixt5]

yup i think i need to. thanks guys. hopefully this thing takes off. there is no one locally to do this work that doesnt charge an arm and a leg. dad and i built an oven (4'tall x 8'long x 3' wide).

 

[CobraBob]

Definitely discuss this with a good accountant versed in business finance.

 

[Stanley]

How did you build the oven and how big of an area do you have for sand blasting? Pics would be cool too. If you don't mind.

Good luck!

 

[FordSVTFan]

im in the process of opening a small buisness (sand blasting and powder coating) out of my garage but wanted to know at what point (income wise) is it to show the income on your taxes? I could write my oven, blast cabinent, power,stripper,ect off but if its just going to cause me to get less back then theres no use.

$5k?
$10k?

You are required to report all your income. If it is a small "buisness" (sic) it is wise to set up an LLC for protect yourself. The benefit far outweighs the cost and it will provide a legitimate vehicle for you to deduct a lot of things you would never think of.

 

[sixt5]

How did you build the oven and how big of an area do you have for sand blasting? Pics would be cool too. If you don't mind.

Good luck!

oven is built out of metal studs (like in a home/building), r13 insulation and 22ga sheetmetal. it basically looks like this:

i bought a cabinet from harbor freight (its the only good thing they make lol), it will fit a 16-17 inch wheel. it will do for now as it will accommodate valve covers,intakes,heads,ect. anything bigger will acquire hand work