Detailing Prices

[Egleone6]

What do you guys charge for detailing. I am interested in continuing my detail on the side, but would like to setup a more organized list and prices.

Also, do I need to be bonded to do this on the side? Are there any worries I should have to be concerned about?

Matt

[BlueZero]

I would call your local places and see what they get. No need to charge much less, you don't want to under cut them. That just causes lower prices all around and hurts everyone.

I would check on insurance. It's really not that bad. Think when I checked it was like $300 for a year and $500,000 coverage.

Good luck to you!

[Egleone6]

But if you get insurance, will that mean I have to pay taxes and report my earnings?

Right now, I am charging around 100 for Wash, Clay, Sealant, Tires, Windows, Vacuum and Wax.

[BlueZero]

Well, since I work for the IRS I'm going to have to say, "Yes, no matter what".

Just kidding I don't work for them. lol

You have to make over a certain amount to be reportable. I can't think of what it is off the top of my head. Depending how you are working things it's up to you. I was looking at doing work out of my home garage. If something freak would happen like my garage door break and fall on a priceless car, I would be screwed if I had to pay.

Don't forget if you do end up reporting your income make sure to keep track of deductions as well. Pretty much anything you buy for detailing will be deductible. I go to an accountant, saves me the headache and doesn't cost too much.

[bert31]

But if you get insurance, will that mean I have to pay taxes and report my earnings?

Well, legally, you have to report and pay taxes on your earnings regardless to whether you have insurance. Now you may be stating that if you get insurance, the IRS will find out you are not paying taxes, possibly.

[Egleone6]

Well wouldn't this be the same as cutting grass? No one said anything about paying taxes on that when I was 12-18 years old?

[Eliot Ness]

Well wouldn't this be the same as cutting grass? No one said anything about paying taxes on that when I was 12-18 years old?Were you getting paid $100 to $300 per lawn ;) ?

Seriously, under a certain amount of income (like what my kids make part time while in school), they don't really pay any taxes because it's all refunded back to them. But they still have to file, mainly because they are getting W-2's. The IRS wants you to report everything that you earn, whether you do that or not is up to you.

[bert31]

Were you getting paid $100 to $300 per lawn ;) ?

Seriously, under a certain amount of income (like what my kids make part time while in school), they don't really pay any taxes because it's all refunded back to them. But they still have to file, mainly because they are getting W-2's. The IRS wants you to report everything that you earn, whether you do that or not is up to you.

You are partially correct. There is a thresh hold whereas if you make less than this amount, you do not have to file. I believe the thresh hold is the amount of the dependent standard deduction which is approx $1,000 or maybe a little less for 2007. Since passing the CPA exam in 1999, I really haven't kept up with the tax laws since I only did a minimum amount of tax while in public practice.

[Eliot Ness]

You are partially correct. There is a thresh hold whereas if you make less than this amount, you do not have to file............. Yeah, I think you're right, but they wouldn't get a refund if they didn't file. I sure wouldn't hold my breath waiting for the Feds or the state to automatically send them a refund ;) .

Now my MIL who retired 2 or 3 years ago doesn't have to file at all, but nothing is withheld that she would get back anyway.

[Fly bye]

But if you get insurance, will that mean I have to pay taxes and report my earnings?

Right now, I am charging around 100 for Wash, Clay, Sealant, Tires, Windows, Vacuum and Wax.



Yes, you have to pay tax on every penny you make.

[Egleone6]

Yes, you have to pay tax on every penny you make.

I just found out that you can LEGALLY make upto 600 bucks a year without filing for taxes or have to havea W-2.

[bert31]

I just found out that you can LEGALLY make upto 600 bucks a year without filing for taxes or have to havea W-2.

Not exactly correct. If you do work for a company as a contractor and in that year the total amount of pay is less than $600, that company does not have to issue you a 1099. However, you STILL legally have to report the income. Granted your risk of getting caught is minimal since the IRS would probably never know about it since a 1099 was not prepared. In that case, you just have to let your conscious guide you.

The most common guideline in determining taxable income is:

"All gross receipts with the exception of borrowings are taxable unless specifically exempted in the tax code."

When I took the CPA exam that was on the exam and every exam I have ever heard of included that question. The reason being is because it is a very good guideline for determining if something is taxable.

[bert31]

Yeah, I think you're right, but they wouldn't get a refund if they didn't file.

I am assuming Egleone is not making estimated payments to the US Treasury therefore he would not get a refund. The exception would be if along with detailing income, he has another job which with holds taxes from his wages. Then he would want to file to get a refund.

[Egleone6]

I am assuming Egleone is not making estimated payments to the US Treasury therefore he would not get a refund. The exception would be if along with detailing income, he has another job which with holds taxes from his wages. Then he would want to file to get a refund.

Now I am confused.

[bert31]

You are partially correct. There is a thresh hold whereas if you make less than this amount, you do not have to file. I believe the thresh hold is the amount of the dependent standard deduction which is approx $1,000 or maybe a little less for 2007. Since passing the CPA exam in 1999, I really haven't kept up with the tax laws since I only did a minimum amount of tax while in public practice.

I double checked this, if your taxable income is less than your applicable standard deduction and exemptions. For a minor who is claimed on his parent's return as a dependent exemption, the amount is $850.

For a single taxpayer who claims themself as an exemption, the standard deduction is $5,350 and one exemption is $3,400 for a total of $8,750 which would be the thresh hold as to whether you have to file or not.

As said above, if you have paid any taxes to the fed, you want to file just to get a refund.

[BlueZero]

I always report what I make. Figure it's piece of mind knowing that I don't have to worry about going away to prison. :rolleyes:

Hey, that's what they got Al Capone for. :p

[Egleone6]

So how do I go about setting it up to where I get legal and pay the taxes? Will this end up costing me? For the few cars I do, is it really worth the time and effort? I have only done 3 cars so far, I don't look forward to doing many, I would hope to, but not in the forseeable future.

This is interesting.

Thanks for the info.

[bert31]

So how do I go about setting it up to where I get legal and pay the taxes? Will this end up costing me? For the few cars I do, is it really worth the time and effort? I have only done 3 cars so far, I don't look forward to doing many, I would hope to, but not in the forseeable future.

This is interesting.

Thanks for the info.

Technically you should report you revenues and expenses on Schedule C (Profit and Loss from Business). When dealing with small amounts of revenue (less than $1,000), I have seen people net their business expenses against revenue and report that on the "Other Income" line. Not supposed to but I guess the IRS doesn't object if the amounts are small. Last year that "Other Income" line was line 21 on the 1040. Probably will be in the same area on the return this year.

When you go into business for yourself, taxes start getting tricky. I would bet 99% of the pro detailers on here use a CPA. I know Bob mentioned he does for Danase.com and his own detailing. I would recommend a tax preperation software for yourself. As long as you follow its directions step by step you should be OK.

[bert31]

I am assuming Egleone is not making estimated payments to the US Treasury therefore he would not get a refund. The exception would be if along with detailing income, he has another job which with holds taxes from his wages. Then he would want to file to get a refund.

Now I am confused.

Most people are wager/salary earners. Their taxes are with held by their employer and the employer submits that money to the federal treasury, state treasury, local etc. etc. etc.. At the end of the tax year, if the amount they calculated their tax to be is less than the amount with held, they get a refund of the difference.

For people who are self employed and do not pay themselves a wage, rather they just keep the profits of their company, and therefore don't have any type of tax with holding, each quarter they must make an estimated payment to the federal government, state, etc.. At the end of the tax year, if the amount they calculated their tax to be is less than the amount they paid in as quarterly estimated payments, they get a refund of the difference.

Because your detailing business is so small for this year, you almost certainly did not need to make quarterly estimated payments.

[Bob]

I always report what I make. Figure it's piece of mind knowing that I don't have to worry about going away to prison. :rolleyes:

Hey, that's what they got Al Capone for. :p

You would go to white collar resort prinson not pound me in the @ss prison.

[Egleone6]

Technically you should report you revenues and expenses on Schedule C (Profit and Loss from Business). When dealing with small amounts of revenue (less than $1,000), I have seen people net their business expenses against revenue and report that on the "Other Income" line. Not supposed to but I guess the IRS doesn't object if the amounts are small. Last year that "Other Income" line was line 21 on the 1040. Probably will be in the same area on the return this year.

This might be a better option to feel out how I do and so forth. Especially if I am only doing maybe 10 cars a year.

[bert31]

So how do I go about setting it up to where I get legal and pay the taxes? Will this end up costing me? For the few cars I do, is it really worth the time and effort? I have only done 3 cars so far, I don't look forward to doing many, I would hope to, but not in the forseeable future.

This is interesting.

Thanks for the info.


I would have to know your situation before I can answer your question.

Because you orginally asked about insurance, I am assuming you are not a high school/college kid who this is your only income and your parents claim you as a dependent on your return. If that is the case, as long as your total income is less than $850 (the standard deduction in your case) don't even bother filling out a tax return.

The rest of this is based upon the assumption that you have other income from other job(s) etc..

If you want to do your taxes yourself, when you get your tax forms, put all your revenue and expenses on Schedule C (Profit and Loss from Business). When you get to the bottom of the form, you will have your profit figure. The instructions will take you to take that amount to the first page of your 1040 and input it on line 12 (or which ever one says Business income or (loss)).

If you want to do you taxes on software such as Turbo Tax or www.taxslayer.com (http://www.taxslayer.com), just follow the directions on the software and the software will do the work for you.

If you are willing to spend $100 or so (I am assuming other than your detailing, the rest of you tax situation is pretty simple), a tax preparer will do it for you.

[bert31]

This might be a better option to feel out how I do and so forth. Especially if I am only doing maybe 10 cars a year.


If you do so and the IRS doesn't like it, they won't fine you (because you did report all your income, just not in the right way). They will however make you redo your tax return and resubmit it. Not a big deal, just have to take an hour of your time to redo it, and resend it. The only cost would be the cost of an envelope and a stamp.