Andrew Camarata

[buckeyefarmer]

Was afraid he would slide it off the mountain on that ice.

 

[Yander]

I'm not nearly as talented as he is but I do see a lot of my own work habits in how he approaches things. Got that from my dad. When he welded that nipple in I'm thinking, my dad would do that. LOL.

It is a plow truck not a show truck, have to keep telling myself that as I watch that video. First one I've ever watched of him. Was kind of cool. Made me feel like I'm not the only one who improvises with what I have.

I may watch more of his videos.

 

[Yander]

For some reason, I can't see Andrew going to an accountant often. I know he should and probably does with the amount of equipment he buys.

I wouldn't be shocked if he takes the standard deduction, and pays full tax on all his income. I am constantly shocked how bad some people are about doing the business end of their business. They are good at what they do, but feel overwhelmed in the paperwork and tax department.

I only say this because he never has any workers employed under him. It's a clue he just dosen't like to deal with all extra time and burden that brings.

Great points. I found out my late FIL was as good on the business end as he was on the farming end after he passed away. Though it wasn't him that had the mind for taxes and business, it was his accountant. He was smart enough to know what he didn't know and found a good one who was well versed in farming and business.

He followed the advice of his accountant and did pretty well for what he started out with. Wish he would have been more open with what he learned while he was alive and I would have learned more from him.

 

[hayden]

...write stuff off mark-to-market against income

Mark-to-market? I haven't heard that expression before. Can you expand?

 

[hayden]

I have no idea what New York State and his local tax obligations are, but where I live, the write-offs would be one time, and then you'd be paying tax to the county on the equipment as assets. You would pay the county tax every year, and the depreciation would never reach zero, so there is a local tax burden until the equipment is sold or transferred out of the business. This is why so many local businesses (like machine shops) lease their equipment. The lease is a cost and deductible and the equipment is never an asset of the business. As an example, I had a computer listed as a piece of business equipment. Five years later, I was still paying the county $40 a year for an out-of-date computer that was a "business asset."

This must be some sort of property or business asset tax that's specific to your state? What state are you in?

 

[caver]

I tend to skim a big chunk of his videos but that part where his buddy is trying to help him get his rock truck up that slick patch...he was lucky. Starts at around 1 hour mark.

 

[aczlan]

I have no idea what New York State and his local tax obligations are, but where I live, the write-offs would be one time, and then you'd be paying tax to the county on the equipment as assets. You would pay the county tax every year, and the depreciation would never reach zero, so there is a local tax burden until the equipment is sold or transferred out of the business. This is why so many local businesses (like machine shops) lease their equipment. The lease is a cost and deductible and the equipment is never an asset of the business. As an example, I had a computer listed as a piece of business equipment. Five years later, I was still paying the county $40 a year for an out-of-date computer that was a "business asset."

In New York you'd have property tax on permanent buildings (buildings with a foundation), but nothing on rolling stock such as his equipment unless it has a license plate to be on the road (like his army truck), those go by curb weight and registered weight.

Aaron Z

 

[buckeyefarmer]

He delivers firewood logs to the firewood guy with his rock truck, which means driving on the highway.

 

[4570Man]

He delivers firewood logs to the firewood guy with his rock truck, which means driving on the highway.

I don’t think those articulated trucks are road legal.

 

[MinnesotaEric]

Mark-to-market? I haven't heard that expression before. Can you expand?

By mark-to-market I mean that the write-offs more accurately measure your tax liability as you go through the year. The reason being is at Andrew's estimated income level, the IRS requires that he send in estimated taxes every quarter throughout the year.

Mark to Market (MTM): What It Means in Accounting, Finance, and Investing

Mark to market (MTM) is a method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities.

www.investopedia.com

Self-Employed Individuals Tax Center | Internal Revenue Service

Find information on self-employment, including when and how to file your federal tax return and make estimated payments.

www.irs.gov