Experienced Scrapper
I thought it be good to start this thread about peoples views on scrappings effects on the economy, ive heard it contributes alot which really got me hooked on it, nothing better then recycling our earth, while working for myself and keeping a positive impact on our economy,
Metal Recycling Entrepreneur
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there is absolutly no denying that anything we take out of the garbage and recycle it at scrap yard is good for environment and good for the economy.... we aren't filling up our dumps and it is easier to recycle steel, copper, etc, than it is to produce new steel from ore...and frankly, if people don't like what I do, I tell them (except for the past couple of weeks) I can easily make 2-300 bucks with only a couple hrs work a day.. plus it's tax free...
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Tehnically, it's not. Just because they don't deduct taxes, doesn't mean you don't declare it as income.Originally Posted by Destructo_d
People may laugh at me, but that's ok. I laugh all the way to the bank.
Metal Recycling Entrepreneur
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The economy is partially why I got into scrapping, had done it once before with some wire from a construction job. Once I saw that the dollar was dropping off a cliff, I figured the best way to counteract that is to make more dollars. So I started looking around at odd jobs I could do on the side to make a few more bucks and scrapping came up in the search.
Went out one night and ended up with a truck (Dakota) bed full of stuff , and thought there may be something to this scrap thing. Every time I've been out, I've come back with a full truck, hell this past Wednesday I didn't even make it down the 3rd road I hit, someone was spring cleaning I guess.
Now I just gotta get my schedule to match with the scrap yards and then I can turn all the steel in, got a pretty good size pile going now...
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One drawback though is the competition has increased dramatically. I have been scrapping for about 4 years now, and have seen it increase substantially in just the past year or so.
Metal Recycling Entrepreneur
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That's why I got into it as well. Our company closed about 2 years ago and it was nearly impossible to find anything that gave me the money I needed. This does what I need it to and as any self employment job, you get out of it what you put in.
BTW, I noticed that you and a couple of others mention that you "go out at night" to get your stuff. What's up with that?
I would get shot or arrested around here if you go out at night "scrapping", lol.
Experienced Scrapper
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Night scrpping is great Its the night before trash day so its fresh pickings also noone sees you so you can be fairly stealthy not dealing with everyone else.
Experienced Scrapper
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Oh it isnt at times you need to know the neighbor hood and if anyone starts to come outside or anything I leave. I scrap with my dad and between both of us (i'm 6 foot my dads 5'10, both built like football players) we dont attract too many trouble makers and are confident in us being able to kick @$$ also we have hamers in the truck and have many types of improvised weapons, Point is if you are uncomfortable I understand but we are confident and pull down about 100-200 per night.
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I too make rounds at night in neighborhoods, if anyone comes out, I don't jump in the truck and run. I already know it's not illegal. I've been pulled over a couple times cruising the neighborhood at 3am because I was reported having my truck bed full of stuff. Every time the cops just verify I'm not stealing.
Experienced Scrapper
The cops in my town already dont like me and im always afraid there gonna give me a hard time about it but what can they really do im trying make a living as are they and its all stuff people put in trash for a reason, to get rid of it, so night scrappin is great i say, thats how i get most my cans to.
Metal Recycling Entrepreneur
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I go at night mainly to give people a chance to put stuff out on the curb, it starts getting dark here by 6 or so. People get off at 5ish, drive home, get dinner, then get the trash out and it's night by then...
Once the time changes then it may be daytime when I go out... though I do like the peacefulness of being out at night. No one around...
Metal Recycling Entrepreneur
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Getting back to the "subject of the post", with the JUMP in gas prices, I would suggest that those of you having to make longer hauls to the scrap yard, to try and cut back on your trips. Take in bigger loads. You will save a lot in gas and time, BOTH of which is a valuable commodity right now.
Metal Recycling Entrepreneur
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That would be a good idea even if gas was 50 cents a gallon...
Experienced Scrapper
to the guy who stated its tax free...if your scrap yard gets audited by the irs you could be in big trouble..my gpa never paid taxes on his scrapping either..when he died the irs took everything he had..they dont mess around...being a scrapper myself i hired a local college teacher who is a certified accountant and teaches accounting at the university 100 dollars a month to keep my butt safe...and with clothes, tools, equipment, gas and or miles, food just to name a few good deductions...i always get a refund from the govt and my taxes are paid...it was a win win,,,last year i got 1900 back from state and federal and im a full time scrapper..so after i paid the accountant 1200..i came out 700 dollars for just putting my reciepts in a bag and taking them downtown once a month...the irs will get whats theres trust me on that lol...if i was a total d-bag i could report you to the irs...they would look into it...goto the scrapyard see total stuff you sold..scrapyard keeps maticulous records..and come back on you ..and since i reported you id get a % of it...im not like that but alot of people are so id be careful throwing that scrapping is tax free lingo around lol
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i make a small amt every year but i still claim all of it and also save my slips for gas etc
Old dogs care about you even when you make mistakes;
God bless little children while they're still too young to hate
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Good post jdawg, the one thing I will add though is if you are do a refund at the end of the year, it's because you overpaid the Feds throughout the coarse of the year so after the reconciliation or filing of taxes you get money back. Many people like to get that large sum of money back every year, but keep in mind the Feds are not paying you any interest to keep that money so it might be better to have control of it and place it where it will make you money instead of sitting there doing nothing. You can change your W-4 every pay cycle if you want to adjust withholding so that you don't overpay or if your self-employed a person would adjust their quarterly contribution. If self-employed you are only required to send in 90% of your tax liability but don't ever borrow money to pay that because that is the one of the few penalties the IRS is quite forgiving on and when converted to an interest rate it is lower then most banks.
Disregard if you already know this but it may help someone else here. The way I look at it is I don't want to have to ask for my money back from the feds as they are a fickle bunch and who knows what reason they will come up with for not wanting to send me my money. Disclaimer: I am not a tax attorney or an accountant so you may want to talk to one to compare notes. I use Turbo Tax but did my own before that and so far(knock on head) the men in suits have not come knocking.
Recyclable Material Merchant Wholesaler
Certified Zip-Tie Mechanic
"Give them enough so they can do something with it, but not too much that they won't do nothing."
Experienced Scrapper
i use the accountant because for 1200 dollars a year and the way she explained it to me..she will be the one whose in trouble and will have to prove what she did to them should i be audited..she straight up told me she would not cheat the irs for me..but she understands her job is to make me pay as little in taxes as possible..i dont overpay..the accountant does it monthly and at the end of the year she takes how much money i made scrapping(which was close to 156,000 usd last year) then she deducts all my deductions and the likes and if i owe money i cut her a check and if im due a refund i get a check...its all calculated jan-april so i dont pay a dime in until its all calculated at the end of the year..if i didnt have the deductions i do it could be very ugly lol..but i keep everything..and since my business is ran out of my home i can deduct up to half of alot of things including mortgage, utility bills, all my cell phone because its business related..and more stuff...if im on my way to a job and get hungry i stop at mcdonalds and since im on the way to a job thats also fully deductible...alot of self employed people dont realize what can be deducted..myself included..so i keep all reciepts and she sorts through them and if i can use them she does if i cant she just tosses them..
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I'm not saying you are overpaying when it's all said and done ie... taxes filed, what I'm saying is if a person gets a refund after filing their taxes they paid too much estimated taxes and that's why a person gets a refund. They could have been using the money for something else all along.
BTW...Glad to see your doing it as a legit biz.
Last edited by KzScrapper; 11-13-2011 at 08:10 PM.
Metal Recycling Entrepreneur
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What? profit?! "Hell I paid $1500 for that 25 inch TV, & sold it for $6.. Thats a $1494 LOSS!."
Most of our metal goes back overseas, that equals $ for $ export $.
Experienced Scrapper
lol i didnt pay for it..you might of lost 1494...but i gained 6 haha
yeah kzbell i know what you was saying but i was just explaining why it didnt apply to me lol..we on the same page on that aspect lol
but id rather personally have them take more out and get it back interest free then taking to little out and having to pay them in a lump sum haha
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