I want to buy some capital equipment (truck, trailor, tools...). How much i can write off ?

[mwconst]

I plan to start my own business, general contracting, home remodeling, landscaping and it is going to require an investment.  I need details on how much i can write off.

[Mike9241]

probably all of it.  either the item will meet the de minimus exception and thus can be expensed directly or for other items, you can take section 179 depreciation (limited to business income before this deduction) or section 168(k) special depreciation (not limited to business income). however, the question is it prudent to take all the write-offs allowed in the first year. you may end up paying very little tax. because all these deductions wouldn't likely recur the next year you could end up paying a lot of tax in year 2.  spreading out the deduction over several years may cost less from in total taxes.  it would be prudent to discuss this with a tax pro who could advise you based on actual numbers and your ideas of how the business would do in the future.

[Critter-3]

No deduction will be allowed until the equipment is actually placed into service when the business actually starts working ... if you buy it this year but nothing is actually used until next year you will take the expenses in the year the items are actually placed into service ... warehousing them now for future use doesn't count. 

You should get educated on this situation by either talking to a local tax pro and/or do some reading ...

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-NEC for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

          

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

          
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

[Carl]

I plan to start my own business, general contracting, home remodeling, landscaping and it is going to require an investment. I need details on how much i can write off.

That, I'm sure you're well aware, is not something that gets a simple answer. There's a lot involved here when starting such an endeavor as this from scratch. I would suggest you get with a local tax pro as well as some other type of person well versed in what lies before you.

On the tax front only, your first year dealing with it will be far from simple. You've got more than just equipment to deal with here. There's employee's, which means quarterly payroll reporting and issuing W-2's. Then there's sub-contractors which means issuing 1099-MISCs and/or 1099-NECs, vehicle licensing, registration, as well as hiring those with the necessary qualifications to operate some of that heavy equipment. There's possibly retirement plan contributions, unemployment tax (different from income tax) and a whole slew of other things to deal with.

The best first investment you will make, is getting professional help getting things off the ground - not just on the tax front either.