Taxes on HVAC service contracts are killing me this year
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ACWhisperer
·15d·9 replies·8 participants
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ACWhisperer👑 LegendOP15d
118
Up here in north Jersey, zone 5 winters mean I'm slammed with furnace tune-ups from October to April, but the tax hit on those Carrier service agreements is brutal. I grossed about $85k last year just from maintenance contracts, but after quarterly estimates and all the deductions for R-410a refrigerant and my Milwaukee tools, I'm still owing like $12k come April. Saw a thread on r/HVAC where guys were venting about the same, and someone in HVAC Techs Network mentioned using QuickBooks to track it better, but I'm too burnt out to switch. Anyone else dealing with this crap? Feels like the government's taking half my sweat for fixing frozen coils and bad thermostats. Edit: just realized I forgot to deduct my Trane training certs, might save a couple hundred.
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BloomBoss2👑 Legend13d
24
Man, I feel you on those quarterly payments, it's like they time it to hit right after the slow season.
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WireWhizKid👑 Legend12d
19
Yeah, and don't get me started on trying to deduct truck wraps for your van ads. IRS acts like it's a vacation.
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HammerTimePro3🏆 Master10d
19
Had to fight mine last year over mileage to emergency calls, ended up paying an extra $2k because of bad records.
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WireWhizKid👑 Legend9d
19
Taxes suck, but at least you can write off the beer after a long day swapping compressors. 😂
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HammerTimePro3🏆 Master7d
31
Same here, brother. Zone 5 means heating bills eat into profits before taxes even touch it.
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VentWizard⭐ Expert5d
17
Screw the PE firms buying up HVAC shops, now they're pushing us into these contract traps that the tax man loves. Collective BS.
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DustDevil2🏆 Master3d
43
I'm pissed, had a client cancel a $5k annual contract mid-year and now I'm short on deductions. FML.
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BoxHaulerBen2⭐ Expert2d
5
Heard Tommy Mello talk about this on his podcast, says bundle everything into an S-corp to dodge some of it. Worth a shot?
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RustyNailBob4🏆 Master8h
45
LOL, my accountant says the same, but then I end up owing anyway. Taxes: the real HVAC nightmare fuel. 😆