New guy

[TRAC]

Hello all,

Just recently started a WSR business, waiting on a few things before I actually get started. I've been reading through quite a bit of this forum, and must say there is some good information here.

Couple questions for the experienced ones here. I know these are probably more for an accountant, but I assume some people here do this stuff on their own, which is what I'm looking to do.

First, what are some of the initial tax write offs when starting a business? i.e. WSR kit, software, office supplies, etc

Next, as far as a vehicle. For what I've read here it sounds like writing off mileage seems the way to go. If your leasing a vehicle, are you allowed to write off the payment with the mileage, or is it one or the other?

Last question for now is about insurance companies. I've read a bit about the insurance services on the Delta site. Are those services the easiest way to go? If so, what is the preferred one?

Thanks for your time,

Ryan

[Bois]

First, what are some of the initial tax write offs when starting a business? i.e. WSR kit, software, office supplies, etc

Next, as far as a vehicle. For what I've read here it sounds like writing off mileage seems the way to go. If your leasing a vehicle, are you allowed to write off the payment with the mileage, or is it one or the other?

It is always best to consult a tax professional. While Federal/IRS rules are common in all states (assuming you're in the US), states may have different tax rulings if you're in a state that has income tax.

When I started my business 3 yrs ago all of my startup costs were lumped together in one figure. The IRS allows this. Or you can break it down into separate categories. My startup costs included repair kit, training & travel costs, all equipment (fax machines, computer, etc), supplies, legal & license costs, inital advertising, etc. Basically, all costs leading up to my first day of business.

Car expense: You can either take the IRS allowed mileage or actual expenses (which is a hastle to keep up with - especially if your vehicle is used for both business and personal use). If you have a loan, the interest is deductable - pro-rata.

[mrchip]

trac..could you fill out your profile?..also a lot of other new guys should too..be nice to know where you are..

[jayjacque]

Welcome New Guy. Wait, that sounds like the name of a sitcom! Just kidding. I do have a comment or two for ya. I was in business for something like 25 years in the states, and the one thing I could tell you is to save every kind of receipt that even remotely has to do with your business. You'll need every write-off you can get. That's for every year, not just the first. Besides automobile and expenses, tools, resins, etc, you can write off a percentage of your house or rent payment and utility bills for an office in your home, and of course telephone and/or cell phone bill. There are other vital things like that too. Maybe consult a tax person to get the straight scoop. One big thing is you'll have to pay self-employment social security tax, sorry to say that's not cheap. Supposedly you're supposed to pay taxes quarterly too, unless that's changed.

[TRAC]

trac..could you fill out your profile?..also a lot of other new guys should too..be nice to know where you are..

Profile updated. :eusa_danc

[TRAC]

Thanks for all the info. Guess I'll be making an appointment with a tax person. :eusa_shif

[SGT]

Depending on your business structure} SP, LLC, CORP. ect... Things will vary. If you have not formally established your business, when you talk to an accountant they will help you with that as well.

As for insurance billing services(EDI), I use edirect 19.95 a month 39.95 a year maint. fee. Very simple to use. Most networks, I believe now allow invoice submissions in an EDI format through there websites for free though.

[TRAC]

Depending on your business structure} SP, LLC, CORP. ect... Things will vary. If you have not formally established your business, when you talk to an accountant they will help you with that as well.

As for insurance billing services(EDI), I use edirect 19.95 a month 39.95 a year maint. fee. Very simple to use. Most networks, I believe now allow invoice submissions in an EDI format through there websites for free though.

Yeah, I've already selected a business structure (SP), so I know things are a bit different.

I called my insurance (Farmers) claims department just to see what it took to get set up for billing. The lady was nice and gave me the phone # to billing. It sounded fairly straight forward with getting set up with them on my own. Obviously there is a ton of insurance companies out there. That's kinda what I was curious about with edirect, do they set it up with the different insurance companies as you go?

So what is the rule of thumb on billing insurance on your personal vehicles? Is that a no-no? Both of my cars have rock chips so I thought that would also be a good way to get set up for billing.:eusa_ange