Weathering the Economic Downturn

[solv3nt]

If you have a business you can take moving expenses off your taxes.

That's only partially true. There are some very strict requirements for this. My side hustle that brought in $40k wasn't enough to qualify.

 

[aasbra]

Related to the trailer idea, I think if it is single axle, and under 1,800 pounds (loaded), it doesn't need to be titled and licensed in Oregon. I have a couple small utility trailers that aren't licensed, and a larger one that is. Registration fees have gone up over the years; grateful the smaller two don't require it.

But check the DMV rules if/ before you decide to go that route.

 

[CamoDeafie]

I'd also think about why you would want it to be mobile. If it doesn't help you make sales or do your work, it's just another thing to maintain, insure and register. Especially with small businesses, keep your expenditures as low as you can.

Biggest consideration; it doesn't tie me to a specific location such as renting a retail/commercial shop space that requires an investment commitment and getting certain things like LLC paperwork and other things. Secondary; and it depends, if the next place we move to, is on the small side for a family of four, or has no garage/shop space...

 

[Longwalkhome]

That's only partially true. There are some very strict requirements for this. My side hustle that brought in $40k wasn't enough to qualify.

It's why I think the first step is get a good accountant that does taxes, mine I take his fee off every year for doing my taxes. I could never have made any money in construction without my tax accountant, he saved me many thousands of dollars.

 

[Longwalkhome]

Biggest consideration; it doesn't tie me to a specific location such as renting a retail/commercial shop space that requires an investment commitment and getting certain things like LLC paperwork and other things. Secondary; and it depends, if the next place we move to, is on the small side for a family of four, or has no garage/shop space...

A rig to pull it with isn't cheap and you might choose something to sleep in if you can't afford motels. At some point insurance may end up as a cost but like I said a tax accountant will really help you.

I know a great one in Albany you could call.

 

[solv3nt]

Biggest consideration; it doesn't tie me to a specific location such as renting a retail/commercial shop space that requires an investment commitment and getting certain things like LLC paperwork and other things. Secondary; and it depends, if the next place we move to, is on the small side for a family of four, or has no garage/shop space...

First and foremost, get your LLC; it's only like $99 for two years and protects your other assets in the event of a lawsuit. The LLC limits your personal liability. The IRS does not recognize the corporation for tax purposes, as it's typically a pass through entity, ie goes on your personal income taxes for profit and loss.

 

[CamoDeafie]

A rig to pull it with isn't cheap and you might choose something to sleep in if you can't afford motels. At some point insurance may end up as a cost but like I said a tax accountant will really help you.

I know a great one in Albany you could call.

My van is rated to tow 3600 pounds. This type of trailer is rated to 2,990 GVWR (nominally 3k). Might be pushing it, hence the idea of the box van instead.

Edit forgot the link LOL

6x10 Enclosed, STD, Ramp, 3K GVWR

This v-nose 6x10 enclosed cargo trailer has a single non-braking axle with a rating of 2,990 lb GVWR. This type of trailer is ideal for light-duty or residential tasks. These trailers are built to offer you the best balance of hauling capacity and value. This model has a side door, a rear ramp...

nctrailers.com

 

[solv3nt]

Biggest consideration; it doesn't tie me to a specific location such as renting a retail/commercial shop space

I don't think that's enough to justify purchasing a van. Keep it at the house until you have to move. A van will still need a place to park, which will also cost.

 

[CamoDeafie]

I don't think that's enough to justify purchasing a van. Keep it at the house until you have to move. A van will still need a place to park, which will also cost.

I'm currently living in an apartment. Street parking is allowed but have to move it every so often, lest we get sticker saying it's abandoned could park at my parents driveway several blocks away; but... there is talk about the city setting up a new homeless "village" a block from them; so I'm quite leery of doing that.

 

[solv3nt]

I'm currently living in an apartment. Street parking is allowed but have to move it every so often, lest we get sticker saying it's abandoned could park at my parents driveway several blocks away; but... there is talk about the city setting up a new homeless "village" a block from them; so I'm quite leery of doing that.

Which brings up a great point, if all of your equipment is in a vehicle, could you afford (whether insured or not) the time and expense associated with the loss of your primary equipment/raw material in the event of theft?

 

[CamoDeafie]

Which brings up a great point, if all of your equipment is in a vehicle, could you afford (whether insured or not) the time and expense associated with the loss of your primary equipment/raw material in the event of theft?

Great question. That is another consideration. Probably on the same level for those handyman businesses and mechanical/plumbing and similar mobile trades businesses. Something to think on. By the same token.. house/apartment breakins. But... there's plenty of other things that would get stolen out of the place besides a 75+ pound industrial sewing machine with table and motor lol

 

[solv3nt]

Great question. That is another consideration. Probably on the same level for those handyman businesses and mechanical/plumbing and similar mobile trades businesses. Something to think on. By the same token.. house/apartment breakins. But... there's plenty of other things that would get stolen out of the place besides a 75+ pound industrial sewing machine with table and motor lol

I would think the guns that survived the boating accident would be on a higher priority list, but then again, I'm not a meth-head.

 

[CamoDeafie]

I would think the guns that survived the boating accident would be on a higher priority list, but then again, I'm not a meth-head.

Like I said, plenty of other things to steal besides the heavy sewing machine and materials.

 

[solv3nt]

Like I said, plenty of other things to steal besides the heavy sewing machine and materials.

With the way things are going with sales, I'd avoid brick and mortar.

 

[CamoDeafie]

With the way things are going with sales, I'd avoid brick and mortar.

Yeah. Again, why I'm figuring things out. By the way; you know there's that Federal Rural Housing Assistance program for low income mortgage loans? Basically they work with lenders to finance plans where the mortgage rate is tailored to either 15 year or 30 year fixed rate with the monthly amount equalling 30% of the combined monthly income of the family; not counting Food Stamps or any other welfare program... anyways; the programs either have 0% down or 1% down and so on, only for "qualified" loan applicants and only through specific lenders and in rural communities (that eliminates large towns like Albany, Corvallis, etc).... but one of the restrictions that would result in a disqualification is this.. "must not be used to generate income". My assumption right now is that it cannot be a commercial property, or a farm/ranch property. It also probably rules out timber valued property. Not sure if it rules out a home based small business/Artisan type of gigs, or remote work nowadays

 

[solv3nt]

Yeah. Again, why I'm figuring things out. By the way; you know there's that Federal Rural Housing Assistance program for low income mortgage loans?

I definitely do not qualify for any of those. I would think they would be referring to rentals, but if you qualify, you should read the fine print.

 

[CamoDeafie]

I definitely do not qualify for any of those. I would think they would be referring to rentals, but if you qualify, you should read the fine print.

Yeah, there's income restrictions and there's also some other restrictions and that fine print has been what gives me pause. It's also likely referring to rental properties too. Considering the first requirement is that it be the primary residence.

 

[CamoDeafie]

Even with that program/loan system, we are very well likely priced out of Oregon simply due to the high cost of homes and properties around Oregon, generally.

 

[CamoDeafie]

15 year 0% APR (right.... LOL) at 30% monthly, $127,600. 30 year, same rate, $255,300. Not counting interest and down and everything else

 

[solv3nt]

15 year 0% APR (right.... LOL) at 30% monthly, $127,600. 30 year, same rate, $255,300. Not counting interest and down and everything else

I believe you may have confused a few points. Based on my knowledge of those programs, the 30% refers to monthly income. For example, let's say your household makes $1,000 per month, your monthly mortgage payment would be limited to $300.