Paying taxes on scrapping

You need to consult with a tax type person. My opinion is just that just an opinion. The folks who do taxes for a living should have not problem answering your question. Also the amount is the same no matter what the activity(scraping, fishing, etc). Best of luck. Mike

Originally Posted by Abuilder

You know you have to start paying taxes on scrap when the IRS freezes your bank accounts.

who would keep scrap money in a bank???

Originally Posted by mikeinreco

who would keep scrap money in a bank???

Not me. LOL
The little bit of money I get from the yard won't even fill my tank for the most part.

i have been shopping around for a bookkeeper/accountant and haven't had much luck. is there anything to look for in particular? Also, I have an appointment in two weeks with a small accountant firm that wants to come over to my house to see my operation and wants to charge me $50 a week for its services. I think this very expensive and I feel very uncomfortable with them snooping around my place.

Should I be feeling this way or is this the norm?

All income is to be reported and you will pay Self Employment Tax (also know as FICA or Social Security) on that after business expenses are figured in. Being Self Employed you will pay much more SS since you don't have an Employer matching the Tax. Federal and State Income Tax is a different animal and will depend on what your Taxable Income is after Personal Exemptions and Deductions are figured.

Turbo Tax is a great product and usually at some point they let you try it for free so you can get an idea how it works. Currently you can only review the product.
https://turbotax.intuit.com/personal...d-business.jsp

Originally Posted by Rollyrogers33

i have been shopping around for a bookkeeper/accountant and haven't had much luck. is there anything to look for in particular? Also, I have an appointment in two weeks with a small accountant firm that wants to come over to my house to see my operation and wants to charge me $50 a week for its services. I think this very expensive and I feel very uncomfortable with them snooping around my place.

Should I be feeling this way or is this the norm?

Like most things in life if you are not comfortable then don't do it. For $50/week you expect weekly services. What services do they offer that is worth $50/week to you? I have used CPA's in the past and have never had one want to come to my house. Mike

Just keep your receipts where you take your scrap in and then expense receipts. Make sure you have at least an LLC if in the US and at the end of the year get your business taxes done at H&R Block. I end up paying ab out $300-400 for the business taxes and then my personal...easy cheesy. If you are doing significant business then I would suggest doing them quarterly or monthly if large where you can submit the taxes owed along the way. In my case, my "tax bill" once I whip out ALL those expenses I can write off just goes against the taxes my wife has already sent in from her W2 job...ie we get a much smaller refund etc. It works out right not at my level.

Originally Posted by Rollyrogers33

i have been shopping around for a bookkeeper/accountant and haven't had much luck. is there anything to look for in particular? Also, I have an appointment in two weeks with a small accountant firm that wants to come over to my house to see my operation and wants to charge me $50 a week for its services. I think this very expensive and I feel very uncomfortable with them snooping around my place.

Should I be feeling this way or is this the norm?

I'd avoid that one. No benefit in the world can come from having a tax specialist that is trying to set a rate on you, come to your place. Not saying that they will screw you over. But I am also not saying they won't. If you were trying to insure everything, an insurance inspection yes. A pre-audit from an accountant? lol... not a f^$king chance.

Originally Posted by msmoorad

here we get a separate page at the scrapyard
this is submitted to the Receiver of Revenue- our version of IRS

if they see that your annual income exceeds a certain amount from the scrap yard- then its likely they will contact u regarding the tax u now owe them.


therefore, many guys who go to the scrapyard with BIG loads on a regular basis have other friends/family carry their ID & declare the load as theirs.
this way, the tax man cant ask them for tax.

also why people use multiple yards. 99% of the time your name/DBA is on file and they keep a running total on you for the entire year. They have to document where they are paying out too. And if that yard gets audited, guess who's name will pop up? Then they can go back YEARS. Keep that in mind.

Originally Posted by ScrapperTrecycling

My scrapyard just told me they don't report anything under a 10k load. If they ever come knocking at your door, just slap in a pair of Billy Bob teeth, sign everything with a crayon, scratch a lot and pay them with a bucket of heat sinks. Ask for change.

That may be true for everyday business but if they get audited they will surely throw everyone they have paid under the bus in order to balance their books.

Originally Posted by logansryche

I know in Liverpool/Syracuse area they don't consider scrapping a significant source of income so they don't count it as taxible(had a JobsPlus exec tell me that one).

Hate to break it to you but it's not up to him, it's up to you, your integrity and the IRS.