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Taxes
- Thread starter jayjohn
- Start date
Overachiever
Active member
The way it works for me is any expense is tax deductible.. so giving away free washes will end up being a tax deduction based on the cost of my chemicals, utilities, maintenance costs. So in other words the more money you spend on car wash related things like upgrading, repairing, inventory, building out your tool collection, etc the less you'd pay in taxes.
Oh forgot to mention home office, cell phone, storage units, travel to and from the car wash, traveling to car wash expos, stuff like that you can deduct as well.
Oh forgot to mention home office, cell phone, storage units, travel to and from the car wash, traveling to car wash expos, stuff like that you can deduct as well.
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As I understand it free washes are not deductible because you didn't receive any money for them, so it just reduces your net. Rainy days just also reduce your gross and net revenue so no deductions there.
You can depreciate the building and land over 15 years instead of the usual longer terms for general purpose property. That is probably the big one in this business that many CPAs may not know about.
You can depreciate the building and land over 15 years instead of the usual longer terms for general purpose property. That is probably the big one in this business that many CPAs may not know about.
Overachiever
Active member
Yeah that is what I meant to say, was trying to say something a long the lines of if you give away 1000.00 worth of soap and utilities costs you can deduct that, but you can't be like I gave away 1000 $20 car washes, so give me a $20k tax deduction.
Rfreeman
Well-known member
Sounds like you need a new accountant
traveler17
Well-known member
Your accountant said “there’s not much tax deductions???? “ That’s when I would have got up, shook his hand and said thanks anyway
I would be interested to know how many people actually deduct the mileage from their home to their carwash? The IRS says your not suppose to deduct this mileage. I have had accountants tell me if you have a home office its easier to justify this mileage.
MEP001
Well-known member
I do because I cross county lines. I deduct all vehicle expenses.
Overachiever
Active member
My accountant originally told me I could only deduct mileage from my full time job to the car wash, but once I became a remote employee due to covid he said I could deduct from my house to the wash.
OurTown
Well-known member
We deduct mileage from home to the wash but we also have a home office. Even without it I don't understand why you couldn't. It is a needed drive there to run your business so it should be a legit expense.
traveler17
Well-known member
We deduct mileage
According to the IRS, you can only deduct mileage after arriving at work or first business destination. So, with a home office, it's possibly legitimate (you arrive at home office, making it your first business destination, then go to a site). But otherwise, you only get to deduct mileage once you arrive at a site when you leave to go pick up parts, go to another site, etc. (but not back home, unless, again, you have a home office.)
As always, check with your accountant. I'm not an accountant or lawyer so this is just my personal understanding, not professional advice.
