Originally Posted by
hills
Uggh .. yuck .. taxes !
*** Disclaimer *** I'm no tax specialist. YMMV
The scrapping money would be considered self employment income. You want to make sure to keep careful track of all of your business expenses. (You may actually find that your business lost money during your first year.)
The vehicle expense thing can play one of two ways.
If you have a newer vehicle it's generally better to take out mileage.
If you have an older vehicle it's often better to take out actual expenses like gas,oil,tires,repairs, excise tax, insurance, registration, inspection, and so on.
The easiest way i found to file is with Turbo Tax for business. It will walk you through the whole process one step at a time and tell you which method is best to use in your own particular situation.
It will double check your work at the end of it all and let you know if there are any problems.
My wife has ran a business for many years, and we always us "turbotax for business" to file our joint taxes. It'll just have 2 businesses this year I guess! I have kept track of everything, recipts, scrap yard tickets, milage, etc, etc. According to my
spreadsheet, I was profitable this year (even after milage expense deduction), but not by much lol.
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