Subcontracting?

[autoez22]

I have been installing on a percentage per total ticket for a while and Ive been considering becoming a sub-contractor. From what I know on the subject(which isnt much) You basiclly get no taxes removed you just pay them at the end of the year. My question Is would it make it easier to write of expenses? Tools, gas, that sort of thing. Is there somthing im missing. Just curios of the installers who sub-contracts and who is a normaly taxed employee....any thoughts?

[Guest losdawg]

Yes you can write off more on taxes, tools, supplies and mileage but not gas. Get a good accountant and also set up where you pay quarterly so you dont get killed at the end of the year.

[TintWizard]

mileage but not gas.

You should be able to do a percentage of gas as well..it's part of the expense of getting to the job. Depending on just HOW much driving you do for work related, it might not be worth keeping track of the odometer

[autoez22]

thats a good plan,quarterly that is...The shop im working for doesnt have the amount of work im used to. This would help. I know I have to pay the taxes but it would make it easier now. Im not sure this guy is gonna be able to provide me with enough work.

[Guest Key West]

You should be able to do a percentage of gas as well..it's part of the expense of getting to the job. Depending on just HOW much driving you do for work related, it might not be worth keeping track of the odometer

thats a good plan,quarterly that is...The shop im working for doesnt have the amount of work im used to. This would help. I know I have to pay the taxes but it would make it easier now. Im not sure this guy is gonna be able to provide me with enough work.

As long as you are a business, they will give you a 1099 (much like a w-2) for your earnings. Its up to you to do your quarterly taxes.

If your vehicle is dedicated to the business, ALL the gas is a write off. You can figure out the percentage of useage your vehicle is devoted to work, and deduct that percentage.

[Guest Crackz]

yes its better sub contractor save some cash

[autoez22]

thanks for the thoughts people

[Guest SSC]

it is my understanding, if you sub, you're supposed to sub for more than one company. if you're a sub and a major portion of your income comes from one company, (or all of it) the IRS gets pissy. you also have to have your own insurance.

[autoez22]

it is my understanding, if you sub, you're supposed to sub for more than one company. if you're a sub and a major portion of your income comes from one company, (or all of it) the IRS gets pissy. you also have to have your own insurance.

I do have a great policly which was just recently offered thorugh state farm about $400 bucks a year. Thats some of the things I was wondering.

[Guest Key West]

it is my understanding, if you sub, you're supposed to sub for more than one company. if you're a sub and a major portion of your income comes from one company, (or all of it) the IRS gets pissy. you also have to have your own insurance.

The IRS does tend to get a bit picky (OK, downright rude!) about the sub thing. One of the biggest things they look at is who sets the hours. If you set your own hours, it helps establish sub status. You have to have your own ins. and workmans comp. It's best to be an "S" type corp, or at least an LLC. (Limit your personal liability). And it's best if you sub for more than one company, but not a requirement.

I sub for a couple of Blind shops. My accountant was/is concerned that since they supply everything and I provide labor only, it might be a sticking point. But since I have more than one company I sub for, and only show up to get film (I get the work orders by e-mail or FAX) it shouldn't be a prob. I provide all expenables (Blades, paper towels, tools, etc), all ladders/scaffold, and gas. If they pay you a gas allowance, you cannot deduct that amount of gas. So have that figured in as something else. Out of town work that requires a motel, the lodging is deductable as well.

The company leases the office at the house, the Bravada is leased to the company as well. All office supplies are deductable, as is my laptop, GPS, and other large expenses.

A good CPA is indispensable!