I look around her office and I can see she's been doing this forever and a day, no rookie, that's for sure.

Really, the way she puts it, if I'm paying any income tax at all, and I certainly am, I can actually 'make money' getting a motel for $50 so that she can write off $90! She says this is different from the meals per diem we all get.

Have any of you heard anything like that!?

 

She is wrong.

You can only write off the cost of the hotel. I would look for a new accountant ASAP. When the IRS comes to audit you, it's going to be on your shoulders to justify the fake writeoffs she is claiming.

 

I thought that was weird. I only had seven nights in a motel. She didn't give me any indication that she's pulling things out of her ass (except for that). Like I said, she's obviously been doing if forever, seems to have a lot of experience, knows IRS personnel...but she's also working out of her cluttered home, not the most professional looking office.

I think I'm getting slammed. Only $3000 to write off my truck; no mortgage interest deduction, no home office deduction, no car usage deduction. I paid in $7k estimated taxes and I suspect it's going to be another $7k more.

 

I know I could have sat down with a notepad and just generated $400 in tax write offs for vehicle expenses. Maybe someone more bold would write off more. But, I really want to do this straight.

I can't get mortgage interest without buying another house as an investment...we've seen how well that has worked for a lot of people!

Home office? Man, I've got a little place. It would be a complete and utter fabrication for me to say my bedroom is actually an office. Additionally, not being a better record keeper than I am, that would be a whole nother set of receipts I'd have to track down.

What else is there? Sometimes I hear guys saying they don't pay income tax. This tax preparer commented how 'straight' everything looked that I gave her. It sounds to me like cheating on the taxes is pretty commonplace.

Why does one guy get a write off because he's paying interest on a big home while another guy doesn't get a write off because he has paid his off? That's the way it is, that's all. Point being, I want to write off everything I can without flat out lying about it...maybe I'll just need to give them $14k in taxes for 2007? Maybe that's just the way it is.

One thing about leasing for a company, there is NO revenue that stays off the books like the handyman business or many others. If we don't get ALL of our expenses, we end up paying taxes on more than we made.

Maybe what I'm paying is normal. I worked through all the moral issues :? of doing a logbook (log it like you do it...when you can :wink: ), I'm trying to understand taxes now. I won't flat out lie about anything, but I also want to make sure I get all the write offs I can possibly interpret in my favor.

And the motel write off? Like I said, it's just seven days. I questioned her about it but she was convinced. Her name will be on the return!

 

I pay in $4,000 every quarter in estimated taxes,I also asked my accountant about some of these guys that claim they never pay or pay very little and he said "all I do is input the numbers you give me".meaning if I didn't want to pay any taxes I could submit enough write offs to do it,although he said he doesn't believe they are truthful about it,me either.

Me,they can scoff all they wan't,but when the tax man comes,I will not have any trouble explaining all my deductions.

 

let me guess, spend $50, write off $90, to save $25 in taxes.

Sounds worth it to me.

LOL

 

dont let yourself get confused with the current real estate forclosures & a second home for investment & tax purposes. I got into trucking 10 years ago & own 10 properties. without going into boring detail... every year a choice pay the tax man or pay yourself, such as 401-k or any other tax write off that is available under law. so every year I would buy a inexpensive house. put 5-6 grand down, finance 5-7 years, & deduct, mortgage % , propert tax, ins, repairs. e.t.c. next year same thing.


my gig is buying homes that cost very little & have occupants already in them paying $400- $500 a month. so instant income too. I do land contracts only, & save thousands right up front. total cost to me to purchase $150.00 includes all attourney fees & court recording & backround tax & lien check.

 

Well now, we've found the real hobby trucker, haven't we!? 8) Seriously, I appreciate you sharing, giving some of the rest of us an idea how it's done. But, with all that's involved in your real estate, trucking can only be a side for you- unless next you are going to tell us you have a bunch of trucks! Don't get me wrong, I'm all for you, but I personally couldn't deal with the complexity of all that. Right now, I just want to be an owner operator- that's obviously just one of the irons you have in the fire.

 

Mike, you don't know how helpful it is to have you say that!