question for scrapping "hobbyists": how to pay less taxes? - Page 2

Originally Posted by ilyaz

I am curious whether a business that deals with scrapping can qualify for any type of "green" tax benefits, since it recycles what can be considered "trash". I once was told a story of some business involved in PM recovery that supposedly got filthy rich not only from all the gold and other PMs it was extracting but also from various government "green" subsidies aimed at businesses that help keep hazardous stuff like computers out of landfills. This was probably more of an urban legend but I am still wondering if it was at least partially true...

You ever looked at the paperwork behind even applying for a subsidy?

Originally Posted by ilyaz

I am curious whether a business that deals with scrapping can qualify for any type of "green" tax benefits, since it recycles what can be considered "trash". I once was told a story of some business involved in PM recovery that supposedly got filthy rich not only from all the gold and other PMs it was extracting but also from various government "green" subsidies aimed at businesses that help keep hazardous stuff like computers out of landfills. This was probably more of an urban legend but I am still wondering if it was at least partially true...

Could be a program out there, who knows, but the feds handing out money like it's candy is one of the reasons why this country is broke. How bout we just go for the honest days pay for and honest days work program...you will be amazed how far that gets you.

Originally Posted by newattitude

I have a more specific question - I'm in the process of adding everything up, income and outgoing - are you allowed to deduct both mileage AND expenses or just one or the other? If someone has already done a previous years taxes doing this I'd much appreciate the info.

One or the other. Deducting mileage assumes average expenses per mile.

I just noticed the thread heading refers to scrap metal as a HOBBY. I mentioned it before but to emphasize - If this is a hobby (see the IRS rules for hobby vs business), you are not allowed to deduct any LOSS from your taxes.

my old scrap yard had an atm machine, but my new one hands out checks. does this mean ill have to report the money?

HOW you get it doesn't matter. It's income and reportable if more than $600.