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Aggieland | You’re right from your perspective. I never said I wasn’t trying to not pay taxes, I was just trying not to lose any chance of not paying taxes next year! ;-)
But yes, for my age group (30’s) we (wife and I) are relatively debt free. I don’t believe in buying new trucks every year just so that you can write off a payment. If you read my other comment on this thread I want a new truck because the new truck I bought is having problems and is scaring me for the long term. Our current vehicles are a 2010 Ford Explorer that is paid off, a 06 duramax that I owe about $5,000 on and a 2017 f150 that I owe about $25,000 on. No credit card debt.
I opened an hvac company two years ago and have done it without any loans. I have 30 day terms at my supply house and I’ve got a $10,000 credit card for the places I don’t have terms. This year was my second year in business and I did very well. I am an S Corp so the business income passes through to me. According to my cpa based on what I paid in w2 taxes, available deductions and how I ran my business I should get a $500 return.
I can’t wait for the day I have to pay taxes! That’ll mean I’m actually successful!
Back to vehicles, I try to run my trucks at least 5 years and 200,000 miles. The explorer has 125,000 on it and if we have one more kid it has to be upgraded but it currently works and doesn’t give many problems. The dmax is my service truck with service body on it and it is a repair monthly truck. It’s pushing 240,000 miles though. I’ll eventually have fixed everything and have a good truck, but when?
But seriously though, I understand your sentiment about spending a bunch on depreciable things just to avoid taxes. Why not work less and not get to that point and actually know your family? Or not be the guy everyone hates in the coffee shop because you ran all the rents up just to make enough to trade equipment every year? I prefer to pass the blessing of extra money on to my helpers and employees. They feel that I appreciate them and in return I get a better product from them. Prime example is my back is hurt real bad right now and my subcontractor and his helper came over to the house to pick up a check and saw that I had started raking the leaves a week ago or so and couldn’t finish. Without asking they raked my entire leaf pile up and bagged it and put it on the curb. I laugh when I hear other business owners complaining they can’t find good help while when on the job site all they do is yell and scream at them and make them feel insignificant. This was a rambling post for sure but pain pills may or may not be making me loopy. God bless and happy new year!
Caleb | |
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Buying a new truck tomorrow, write off next year?
