# Misc. Questions



## jeffslawnservic (Apr 23, 2009)

Few quick questions and bare with me I am relatively new to some of this. This one is more for some PA people, I heard that snow plowing is non taxable but deicing is? Is this true or what should I be collecting sales tax on and what should I not. 

Second I am trying to figure out my oper head and hourly rate better, how to I go about figuring what my truck costs per hour. (depreciation, maintenance, wear and tear, ect.) Also if someone has a sample bid proposal form I could look at to help draw one up on my own I would really appreciate it. (In the past most of the people I would see face to face and the lots were small so I could give them a ball park price and they would either agree and ask for a contract and I would put he actual numbers on that or they would say no.)


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## jklawn&Plow (Jan 8, 2011)

If your going to start crunching numbers it might be helpful to learn some basic excel so you can save a lot of time and have the info updatable or change it and not have to spend as much time.

Depreciation is a legal term and a reality term.
Legally it is the amount you can deduct on your taxes as a business expense. This is an average amount and is the same for every similar vehicle. In reality your truck is depreciated by more because it is being worked hard and has a plow on it. But you can't really deduct for this unless something breaks and then you can deduct for the parts you buy and the labor you buy but not your own labor.
Every time I open my wallet for something related to my business I get a receipt and record it as a line in excel. Throughout the year and at the end of the year I know how much I spent of everything.
If you track your hours (I have a log sheet in my truck, everytime I start a job I record the time and mileage and when done the same) at the end of the season I total it all up. I have a spreadsheet with each payment associated with each type of Business. So then you have 1=All the money that comes in, 2- All the money that goes out and 3-The time you put in. These are the 3 major bits of info. There can be alot that goes into this depends on how detailed and accurate you want to get.


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## jeffslawnservic (Apr 23, 2009)

jklawn&Plow;1381263 said:


> If your going to start crunching numbers it might be helpful to learn some basic excel so you can save a lot of time and have the info updatable or change it and not have to spend as much time.
> 
> Depreciation is a legal term and a reality term.
> Legally it is the amount you can deduct on your taxes as a business expense. This is an average amount and is the same for every similar vehicle. In reality your truck is depreciated by more because it is being worked hard and has a plow on it. But you can't really deduct for this unless something breaks and then you can deduct for the parts you buy and the labor you buy but not your own labor.
> ...


The reason, I am asking is because I am trying to set up an excel sheet to better understand my numbers. I am also using quickbooks to record everything which helps big time. I understand the points of depreciation for reaity and tax term, however depreciation might not have been the best word to use, I am trying to figure if i buy the truck for $x, drive x miles each year, the truck should last x years and it will cost me x dollars per year. I am more stuck on the cost of maintenance per year. I should be able to get better at this as I go since I will have more info of what things actually cost me that year so I can plan for the next. ( This is my first year being legit in business so I really dont have much data to compare to from before.) Thanks for your imput.


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## jklawn&Plow (Jan 8, 2011)

I see, well start by keeping track of as much as you can. It will be useful down the road. I would try to budget $2500 - $5000 a year for repairs on an older truck unless you do the labor then maybe a 1/4 of that. Then see where you are in a year and update your budget accordingly.
Here's my current work budget and expenses. Note these are copies so they don't have the formulas in them. You can see I was on budget till I bought the new plow.
These two sheets show money going out- The budget is what I expect the expenses is the actual as it happens, and helps calculate my taxes.


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## jeffslawnservic (Apr 23, 2009)

jklawn&Plow;1381423 said:


> I see, well start by keeping track of as much as you can. It will be useful down the road. I would try to budget $2500 - $5000 a year for repairs on an older truck unless you do the labor then maybe a 1/4 of that. Then see where you are in a year and update your budget accordingly.
> Here's my current work budget and expenses. Note these are copies so they don't have the formulas in them. You can see I was on budget till I bought the new plow.
> These two sheets show money going out- The budget is what I expect the expenses is the actual as it happens, and helps calculate my taxes.


Thanks for the budget sample file, I am at least in the area to say so I know I did the math right. Also you are right about 2500-5000 in repairs and maintenance. Between what I already paid and what I still need to get done before the year is over (tires, brakes, a little odds and ends) comes out in between those two numbers. I really didnt realize what I paid in repairs and maintenance until I went back and looked at that file in quickbooks.


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## MatthewG (Jun 16, 2009)

If you sold just "salt" you could tax it assuming you have a Tax Id number, however when you combine the "salt" with a service, such as spreading it and plowing, you cannot separately charge tax on the salt.

You just right off the tax you paid on the salt at year end all while building it into your price.

At least this is how I do it.


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## jeffslawnservic (Apr 23, 2009)

MatthewG;1383012 said:


> If you sold just "salt" you could tax it assuming you have a Tax Id number, however when you combine the "salt" with a service, such as spreading it and plowing, you cannot separately charge tax on the salt.
> 
> You just right off the tax you paid on the salt at year end all while building it into your price.
> 
> At least this is how I do it.


So say I buy salt and it cost $100 and I spread it on a customers lot and it cost me $200 (salt+my costs+profit) would I just charge the customer $200 or would I charge him $216. (Are tax rate is 8%) Also I do have a tax id number.


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## lilweeds (Aug 3, 2007)

Jeff. You can not separate it like that. Pay the tax when you buy the salt then there is no issue.


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