Vetting Your Accountant

we do we do tax planning to legally figure out ways to lower your tax tax evading is you know you don't report your income or take that trip to Colorado that wasn't really business that's tax evasion tax planning is coming in and you know my profit is this do I need any equipment or you know yeah if you buy this excavator you need for 60 grand that's gonna take 60 grand off that hundred thousand before and now we've got forty thousand that we're working with before we get to your other personal stuff so let's well let's play through a scenario of different deductions and how it can actually impact your income sure so you are a small business owner your business brought in a hundred thousand dollars in the year yeah you bought the truck for 25 grand that you leased it you didn't buy it you lease okay the truck so you can deduct 100% of that lease right correct all and that's your work truck yes we're again we're assuming this is 100 percent of work vehicle a hundred percent of the fuel that goes into that work truck is tax deductable correct a hundred percent that's 100 percent business vehicle a hundred percent fuel insurance repairs and maintenance tabs so the only thing you can't take is mileage that's the difference its mileage or actual expenses which actual would be your lease payments or if you buy it depreciation how you recapture at the principle involved so your small business owner let's say you put 10 grand into fuel insurance etc you can deduct it because this is your dedicated work truck so now you've got 35,000 in expense correct okay but you are a contractor and unique tools to complete a job so you go out and you buy yourself shelves you buy yourself rakes you buy yourself all of these tools that you need for your business right you spend another 15 grand on investing into equipment okay all right so where are we at right now 50 grand I believe well it's just saying we've total with the truck fuel insurance extra tools you've invested 50 grand into your business okay so now you've taken your hundred thousand dollars which the average person would pay taxes on a hundred thousand if it was just they were and if it's only you two job you pay on the top amount I mean there are some things you know for ones and different things people can do to lower the taxable portion but generally yes hundred hundred thousand a contractor income then you take expenses if you were if you're working as a w-2 employee hundred thousand before expect you're paying…