2,121 plain-English guides on cross-border moves, US and Canadian returns, and small-business money. Each one ends in what to do next, and says when a written Diagnostic is the smarter first step.
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Tow trucks qualify for full bonus depreciation ($40,000-$800,000 per truck, all over 6,000 lbs). Fuel is the largest ongoing expense (10-20% of revenue).
US TaxTowing is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxTowing is one of the least seasonal businesses (24/7 demand for roadside assistance, accidents, and impounds). Revenue is nearly flat year-round.
US TaxTowing businesses can deduct tow trucks ($40,000-$150,000, Section 179), fuel (the largest ongoing expense), insurance (garagekeepers, on-hook).
US TaxTowing businesses are NOT SSTBs and qualify for the full QBI deduction. The S-Corp election saves $5,000-$10,000/year at $120,000+ net profit.
US TaxTowing businesses generate relatively steady revenue (accidents and breakdowns happen year-round) but face lumpy cash flow from equipment purchases.
US TaxTow truck drivers are almost always employees under IRS and DOL tests when using the company's truck, working company dispatch.
US TaxTree service businesses can deduct chippers ($20,000-$80,000, Section 179), stump grinders, bucket trucks, chainsaws, crew wages.
US TaxTree service businesses have heavy equipment costs: bucket trucks ($50,000-$150,000), chippers ($15,000-$50,000), stump grinders ($5,000-$30,000).
US TaxTree service businesses are NOT SSTBs and qualify for the full QBI deduction. Entity structure comparison for tree service: Sole proprietorship /.
US TaxTree service businesses earn 70-80% of revenue March through October, making quarterly estimated tax payments uneven. How to avoid penalties.
US TaxTree service revenue peaks March through November with near-zero work in northern winters. Tree service seasonal tax planning: Northern market seasonality.
US TaxTree service crew members are almost always employees under IRS and DOL tests. Why tree service crew members are employees: Behavioral control (IRS.
US TaxTree service businesses are not SSTBs, so the full 20% QBI deduction applies at any income. How S-corp election cuts self-employment tax.
US TaxTutors can deduct platform fees, a home office, curriculum materials, software, technology, and mileage, even when a 1099-K reports gross revenue.
US TaxTutoring businesses face an SSTB classification question under IRC 199A. The answer matters only above the QBI threshold, and S-Corp election saves FICA.
US TaxTutors who earn income from platforms (Wyzant, Varsity Tutors) and private clients must make quarterly estimated payments.
US TaxIndependent tutors can use the Solo 401(k) to shelter income. Test prep company owners with employee tutors need SIMPLE IRA or Safe Harbor 401(k) plans.
US TaxTutoring companies that hire tutors face a classification question. Factors that point to EMPLOYEE status for tutors: - The company sets the tutor's.
US TaxVending machines are 5-year MACRS property eligible for bonus depreciation or Section 179. COGS can run roughly 40-55% of revenue, and route costs are deductible.
US TaxVending machine businesses are NOT an SSTB. Machines depreciate over 7 years (or 100% bonus in Year 1). Entity structure comparison for vending machine.
US TaxEstimated tax planning for vending operators: - Year 1 with equipment purchases: bonus depreciation likely creates an NOL.
US TaxWeb developers and software engineers deduct computers, monitors, software subscriptions, home office costs, internet, and professional development.
US TaxWeb development, software development, and IT consulting may or may not be SSTBs depending on the nature of the work. NOT an SSTB (full QBI available.