# How much should I be putting away for taxes and what are my write offs



## livinlife (Dec 18, 2012)

I will just be getting my second paycheck and was wondering how much I should be putting away for when taxes come around?

Also what kind of tax write off can I use being a sub contractor? 

I drive a ridiculous amount of miles on some jobs around 450+ round trip 

I started out with nothing and had to buy all my own tools,zip ties,cleaning products, genie,compressor etc 

Ive been keeping every receipt just in-case

Thanks ahead of time,


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## Stateline (Jan 3, 2013)

Keep every receipt and get yourself a GOOD CPA/Tax person, its worth the price.


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## HollandPPC (Sep 22, 2012)

If you can't figure it out by a basic internet search you ..................................... and should not be in this business. 



livinlife said:


> I will just be getting my second paycheck and was wondering how much I should be putting away for when taxes come around?
> 
> Also what kind of tax write off can I use being a sub contractor?
> 
> ...


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## Diallo185 (Dec 15, 2012)

Anything business related write off. Meals can been a write off too at 50%. I would put 15-20% into a saving and forget about it till april 15th. IRS doesnt expect a new business to turn a profit in the 1st 3 years, however it is doable.


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## PropPresPro (Apr 12, 2012)

livinlife said:


> . . . I started out with nothing and had to buy all my own tools,zip ties,cleaning products, genie,compressor etc . . .


What's a genie? and I want one!


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## livinlife (Dec 18, 2012)

Diallo185 said:


> Anything business related write off. Meals can been a write off too at 50%. I would put 15-20% into a saving and forget about it till april 15th. IRS doesnt expect a new business to turn a profit in the 1st 3 years, however it is doable.


Perfect thats all I was looking for thank you! :thumbsup:


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## livinlife (Dec 18, 2012)

HollandPPC said:


> If you can't figure it out by a basic internet search you ............................... and should not be in this business.


You mad bro? :furious:

...................................................................................................................................................................................................................................................................

Im just asking on this forum rather then searching the web because this is a specific forum with people who have been in my exact spot and can give me a realistic and specific answer.

......................................................


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## livinlife (Dec 18, 2012)

PropPresPro said:


> What's a genie? and I want one!


It's my magic generator that runs on hopes and dreams. 
Also cell phone text haha


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## Mills (Dec 6, 2012)

If you do not know what to write off on taxes and how much percent you pay in, you should not have a business.


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## JFMURFY (Sep 16, 2012)

livinlife said:


> Perfect thats all I was looking for thank you! :thumbsup:


Just get Turbo Tax


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## GTX63 (Apr 12, 2012)

A former hops and barley buddy used to claim a dozen dependents and virtually 100% of his income as write offs every year (when he filed). Said he didn't recognize the current government and that taxes were not a part of the constitution.Where he resides at now is considered tax free.


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## HollandPPC (Sep 22, 2012)

You should have researched and planned how to deal with taxes before you started working and receiving paychecks. Does not seem very bright to get a couple paychecks and then start trying to figure out taxes. 



livinlife said:


> You mad bro? :furious:
> 
> 
> 
> Im just asking on this forum rather then searching the web because this is a specific forum with people who have been in my exact spot and can give me a realistic and specific answer.


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## REO2Rentals (Sep 18, 2012)

The problem with these low ball price is...........

#1. PEOPLE DON'T KNOW/UNDERSTAND HOW TO DO BREAK-EVEN COST ANALYSIS 

THE LIST COULD GO ON AND ON ON.............


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## Wannabe (Oct 1, 2012)

Taxes are the #3 reason why small self-employed persons fail....

Get good advice...ie...tax professional to set you up a set of books and rules to follow. With all the changes that has happened with the "fiscal cliff" Bullsheet its figureing out how best to deal with it. 

Theres the obvious: mileage vs depreciation on vehicles, equipment write offs, reimbursements to hired contractors, Insurance costs, etc etc..... there is no rightoff for meals unless you stay overnight on a jobsite..then you get to deduct meals and motel (per deim rate).

We hold back 27% from each check. Now we are told 30% after the new tax structure. Each is different depending on your business. 

File quarterlies so you don't get hit with the 10% penalty. Get a tax ID number. Just to name a couple easy ones. 

Good luck AND please pay a lot in taxes.... US OLDER folks and my Grandkids need it


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## 68W30 (Sep 8, 2012)

HollandPPC said:


> If you can't figure it out by a basic internet search you are absolutely retarded and should not be in this business.



BE NICE HESA YOUNGSTER 
we the old dogs have this down pat , impart some wisdom


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## 68W30 (Sep 8, 2012)

Basically you can write off every thing , then you can depreciate it , if at end of year you made to much go buy something business related ( before 12 31 xx) document document document ,, home office space , heating home office space virtually everything is deductible 

im lucky " mom " is a CPA 

i did ask if i could write off dog chow as a security expense , she said " not with that dog "


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## BPWY (Apr 12, 2012)

HollandPPC said:


> If you can't figure it out by a basic internet search you .................................. and should not be in this business.





livinlife said:


> You mad bro? :furious:
> 
> ..............................................................................................................................
> ........................................................................................................................................
> ...





HollandPPC said:


> You should have researched and planned how to deal with taxes before you started working and receiving paychecks. Does not seem very bright to get a couple paychecks and then start trying to figure out taxes.






There is absolutely no need to be calling people retarded on the forum. The staff is not going to allow this forum to degenerate into some thing like that. There is also no need to respond in kind if some one does stoop to that level.
If you wish to brawl bare knuckles on a forum they are out there, but you will not find that on this forum.
Myself and the rest of the staff work way too damn hard at keeping spammers and other nefarious creatures away from this site to allow that to happen.


So grow up, act like ADULTS not teenage bullies on the school play ground and play nice. If folks are unable to play nice............. they'll be playing some place besides this forum.

Thank you.


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## BPWY (Apr 12, 2012)

Wannabe said:


> Taxes are the #3 reason why small self-employed persons fail....
> 
> Get good advice...ie...tax professional to set you up a set of books and rules to follow. With all the changes that has happened with the "fiscal cliff" Bullsheet its figureing out how best to deal with it.
> 
> ...






Turbo tax aint gonna cut it.


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## livinlife (Dec 18, 2012)

Mills said:


> If you do not know what to write off on taxes and how much percent you pay in, you should not have a business.



Well guess what i have to start off somewhere so if you wanna troll and be negative do it in someone else s thread!


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## BPWY (Apr 12, 2012)

Mills is right. 

Further research into operating procedures probably should have been done prior to starting a business.

But hey, you're learning now. So soak up the free advice. 
And if you can't handle the harsh truth of what Mills said ................ you'll never handle the fecal matter that the nationals/regionals dish out.


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## livinlife (Dec 18, 2012)

michael.biasi said:


> BE NICE HESA YOUNGSTER
> we the old dogs have this down pat , impart some wisdom



Thank you,


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## livinlife (Dec 18, 2012)

BPWY said:


> Mills is right.
> 
> Further research into operating procedures probably should have been done prior to starting a business.
> 
> ...



Ok so I am supposed to just agree with someone ive never met or that just randomly posts online that I shouldn't have started my own business? 

No offense but if you cant answer my posts and be helpful why post anything at all ? Im not being rude to people or calling them retards for starting in this line of work and asking for advice from people who i thought where polite and professional since you all "OWN" your business.


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## livinlife (Dec 18, 2012)

JUST SO EVERYONE IS CLEAR! 

I started this job because i replied to a craigslist ad when i was looking for work ( I had just moved to idaho) I found this listing literally at 8pm by 11pm the guy offered me work the next day knowing i didn't have all the stuff ready to go. 

I didn't have a guide telling me the ins and outs of PP Work but he has worked with me and guided me through the work and now im loving it! 

I simply want to insure i stay in this line of work so i was asking for advice there is no need to bash me because i jumped into this to secure the position

I needed a job and this was offered up so I took it. I didn't realize being a sub contractor was like owning a business but now i do 

I dont have a dad or family i can run to an have them help me im all alone on this and was simply asking for some advice from people i thought would be helpful 

JEESH...


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## livinlife (Dec 18, 2012)

Wannabe said:


> Taxes are the #3 reason why small self-employed persons fail....
> 
> Get good advice...ie...tax professional to set you up a set of books and rules to follow. With all the changes that has happened with the "fiscal cliff" Bullsheet its figureing out how best to deal with it.
> 
> ...


:thumbsup:


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## BPWY (Apr 12, 2012)

livinlife said:


> Ok so I am supposed to just agree with someone ive never met or that just randomly posts online that I shouldn't have started my own business?
> 
> No offense but if you cant answer my posts and be helpful why post anything at all ? Im not being rude to people or calling them retards for starting in this line of work and asking for advice from people who i thought where polite and professional since you all "OWN" your business.





livinlife said:


> JUST SO EVERYONE IS CLEAR!
> 
> I started this job because i replied to a craigslist ad when i was looking for work ( I had just moved to idaho) I found this listing literally at 8pm by 11pm the guy offered me work the next day knowing i didn't have all the stuff ready to go.
> 
> ...





Easy now. I stood up for you one page back. So don't go all rambo on me.


I'm just saying if you can't handle the harsh truth of what the one guy said then you'll never be able to handle the BS that the P&P industry dishes out. 

I still stand by my comments that further research should have been done prior to starting your business. That all rides on your shoulders not the guy that started you in the business knowing you didn't have all your ducks in a row.
You are extremely lucky to have found some one that did not take advantage of you not knowing any thing. And willing to help guide you to this point.
The stories are many of folks that this industry has taken huge advantage of. Folks that are a lot more seasoned than you are at this point. 





> Ok so I am supposed to just agree with someone ive never met or that just randomly posts online that I shouldn't have started my own business?
> 
> No offense but if you cant answer my posts and be helpful why post anything at all ? Im not being rude to people or calling them retards for starting in this line of work and asking for advice from people who i thought where polite and professional since you all "OWN" your business.




Keep in mind that you came looking for advice. Not every thing we get as free advice is easy to hear. But some times it is what *WE NEED* to hear.

Most likely every one on this forum has been in those shoes at some point or another.


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## livinlife (Dec 18, 2012)

BPWY said:


> Easy now. I stood up for you one page back. So don't go all rambo on me.
> 
> 
> I'm just saying if you can't handle the harsh truth of what the one guy said then you'll never be able to handle the BS that the P&P industry dishes out.
> ...




Fully understandable. I get my second check in a couple days. Its not like the irs is knocking down my door, I think i have plenty of time to put money away for taxes i was simply asking how much and what are write offs and then get bombarded with guys acting like I just ruined my life and there's by starting to do this work lol

Sure i could have just googled it and hoped all the millons of gb's of BS is true or I could ask people who are specifically in this line of business 

Its just annoying being attacked because of a question 

The only stupid question in my book is one that was not asked. 

I really do appreciate any info givin here and so far you guys seem great (minus a couple) So im sorry if i lashed out. Just frustrating getting called a retard repeatedly can p*ss someone off a lil bit


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## P3+ (Aug 16, 2012)

#1. Stop referring to your livelihood as a job. You are now a business owner/entrepreneur.
#2. If you started performing services for a company "without everything in order", you need to seperate yourself from this company sooner rather than later. (Simply put, i guarantee you are being taken advantage of).
#3. Do NOT use an out of the box tax prep program. Just trust the advice so far, w/o using a taxpro you are asking for troubles.
#4. CYA


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## HollandPPC (Sep 22, 2012)

I still stand with my original statement about the OP. The more he posts the further it justifies my statement. 

BPWY. Sorry for offending you but the insanity and lack of better judgment by some of these people is nuts. Sometimes people need a good slap of reality even if it resorts to calling them particular names.


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## BPWY (Apr 12, 2012)

I do have a kid brother that is bonafide mentally handicapped. Some might even legitimately use the R word.

How ever on a public forum one will always attract more insects with honey than vinegar. 

I'm pretty sure the english language has enough words that can be used with out using certain derogatory comments.



The OP certainly is green, hes not denying that. And maybe he is at fault. 
But recognize that he is now trying to learn and improve himself and try to give advice thats asked for and keep the judgements out of it.
At some point all of us had to learn how it all works.


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## HollandPPC (Sep 22, 2012)

Well to better educate us all on what words you deem offensive why don't you post a list of words you are banning from use. God for bid someone else gets offended. Let me guess can't use god either might offend someone right?



BPWY said:


> I do have a kid brother that is bonafide mentally handicapped. Some might even legitimately use the R word.
> 
> How ever on a public forum one will always attract more insects with honey than vinegar.
> 
> ...


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## BPWY (Apr 12, 2012)

Civil discussion on the internet is no harder than civil discussion face to face. 


Would you call your grandma "retarded" to her face? Probably not.


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## HollandPPC (Sep 22, 2012)

Depends on what granny did. 




HollandPPC said:


> Well to better educate us all on what words you deem offensive why don't you post a list of words you are banning from use. God for bid someone else gets offended. Let me guess can't use god either might offend someone right?





BPWY said:


> Civil discussion on the internet is no harder than civil discussion face to face.
> 
> 
> Would you call your grandma "retarded" to her face? Probably not.


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## BRADSConst (Oct 2, 2012)

livinlife said:


> Fully understandable. I get my second check in a couple days. Its not like the irs is knocking down my door, I think i have plenty of time to put money away for taxes i was simply asking how much and what are write offs and then get bombarded with guys acting like I just ruined my life and there's by starting to do this work lol
> 
> Sure i could have just googled it and hoped all the millons of gb's of BS is true or I could ask people who are specifically in this line of business
> 
> ...


I'm not defending Holland, but you gotta get some thick skin. You WILL get taken advantage of, chewed up and spit out. You have admitted to being the FNG in the business (getting 2nd check). You are also the FNG on this forum as well. Before you get too bent out of shape, you need to realize that you aren't really in a position to go all guns blazing. Get your emotions in check and use a level head. People won't help you unless you do.

I can see it now, your next thread will be what should I do about insurance. 

Thruth be told, you aren't ready for business. If your personal situation puts you in it, you have no time for a learning curve.


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## thanohano44 (Aug 5, 2012)

BPWY said:


> I do have a kid brother that is bonafide mentally handicapped. Some might even legitimately use the R word.
> 
> How ever on a public forum one will always attract more insects with honey than vinegar.
> 
> ...


Are you Obama's body guard too? Ooooo lala


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## SwiftRes (Apr 12, 2012)

When I was 18, I got my real estate license mid-year. I made $14k in commissions, so taxes weren't much of a problem. The second year, when I got a 1099a for $57k in commissions plus 1099s from some preservation/BPO work I did, it screwed me up for awhile. I still hate taxes and procrastinate more than I should, but how you handle them can make or break you. Find a good CPA. I have an okay one, but would prefer one i can do more one-on-one time with, so I'm searching again.

Point being, I think very few really spend the time they should on tax preparations when starting out in your own venture. Usually, being profitable is your only focus starting out. I think its good that you are looking at this as early as you are.


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## livinlife (Dec 18, 2012)

Wow! Look guys i apologize for being such a 'RETARD' 

Ive never gotten the point of calling people names who where not doing anything to you.

Anyway! Thanks for all the useful info.

And I am sorry if offended anyone else on here but I needed money and work and jumped on a opportunity can you really blame someone for trying to make a living?? 

Im itching to get back to work now being on this forum lol


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## livinlife (Dec 18, 2012)

SwiftRes said:


> When I was 18, I got my real estate license mid-year. I made $14k in commissions, so taxes weren't much of a problem. The second year, when I got a 1099a for $57k in commissions plus 1099s from some preservation/BPO work I did, it screwed me up for awhile. I still hate taxes and procrastinate more than I should, but how you handle them can make or break you. Find a good CPA. I have an okay one, but would prefer one i can do more one-on-one time with, so I'm searching again.
> 
> Point being, I think very few really spend the time they should on tax preparations when starting out in your own venture. Usually, being profitable is your only focus starting out. I think its good that you are looking at this as early as you are.



Yes taxes are a big concern to me I live very inexpensively, Everything i own is paid off. So as of right now Im just putting back money for summer tools and starting another bank account for to put money away for taxes


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## livinlife (Dec 18, 2012)

BRADSConst said:


> I'm not defending Holland, but you gotta get some thick skin. You WILL get taken advantage of, chewed up and spit out. You have admitted to being the FNG in the business (getting 2nd check). You are also the FNG on this forum as well. Before you get too bent out of shape, you need to realize that you aren't really in a position to go all guns blazing. Get your emotions in check and use a level head. People won't help you unless you do.
> 
> I can see it now, your next thread will be what should I do about insurance.
> 
> Thruth be told, you aren't ready for business. If your personal situation puts you in it, you have no time for a learning curve.



I think my emotions are in check, Maybe take a piece of your own advice i see you are getting a bit riled up over these post aswell. I have thick skin I but i am not going to let someone blatantly disrespect me when I am not attacking him in anyway.

I think people need to get off there high horse and stop thinking they can judge someones life and potential over a single post. I should not be having to defend myself if i fail I will happily comeback here and admit to you all! I have no shame in if i do. I would be more ashamed of myself if I passed up a opportunity rather then try at it 

Hope you understand what im saying..Not trying to start another argument just saying stop judging people so quickly


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## GTX63 (Apr 12, 2012)

Short answer is to prepare now so you don't have to react later.Read here, search google with a few quick keyword searches. Read again...and take notes.I have had guys work for me that didn't save a penny all year and then stood next to their truck in January staring at their 1099 like it was a draft notice.Get a program like Quickbooks to track everything that goes in and goes out.Get an EIN and a bank account for your biz.


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## livinlife (Dec 18, 2012)

GTX63 said:


> Short answer is to prepare now so you don't have to react later.Read here, search google with a few quick keyword searches. Read again...and take notes.I have had guys work for me that didn't save a penny all year and then stood next to their truck in January staring at their 1099 like it was a draft notice.Get a program like Quickbooks to track everything that goes in and goes out.Get an EIN and a bank account for your biz.


Got my EIN. Bank account ill be opening monday. I have a friend that did ebay last year and made 50k+ in sales and then got hit with a 1099 It was ebay's first year ever doing taxes...He wasn't bragging very much after that


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## SwiftRes (Apr 12, 2012)

GTX63 said:


> Short answer is to prepare now so you don't have to react later.Read here, search google with a few quick keyword searches. Read again...and take notes.I have had guys work for me that didn't save a penny all year and then stood next to their truck in January staring at their 1099 like it was a draft notice.Get a program like Quickbooks to track everything that goes in and goes out.Get an EIN and a bank account for your biz.


I would be lost without Quickbooks. You NEED some very effective way to track invoices as well and receive payments against these invoices when you get paid. Don't assume these guys are going to pay you, or the correct amount. On a regular basis, we have to audit our open invoices for ones not being paid correctly, or not at all. Sometimes it might be on purpose, sometimes it's just a paperwork screwup. Put your system in place ahead of time as this work usually comes in waves. You will bring on a new customer that gives you a significant volume of work, at which point you will be too busy to start thinking then on how to manage your invoices.

Quickbooks also allows you to input bills. It'll also link up with your checking account to pull in transactions automatically to help keep track of expenses. It can do payroll very easily as well.


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## 68W30 (Sep 8, 2012)

GTX63 said:


> Short answer is to prepare now so you don't have to react later.Read here, search google with a few quick keyword searches. Read again...and take notes.I have had guys work for me that didn't save a penny all year and then stood next to their truck in January staring at their 1099 like it was a draft notice.Get a program like Quickbooks to track everything that goes in and goes out.Get an EIN and a bank account for your biz.




was his name josh ??? lmbo 

i had that guy!! actually he was next to a company sponsored truck ( mine )when i handed it to him .. then i paid the accountant for him ,,, then paid the taxes for him ,, and then got him a job with my brother ... i couldnt afford him any more


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## GTX63 (Apr 12, 2012)

Worked with guys like that, and had plenty work for me. Knew some that thought they would only accept cash payments and thereby skip the paperwork. Most still got 1099d. ine always have. I had a female trashout/rehab contractor several years ago that paid the taxes for most of the four subs in her crew...every quarter, every year. Some would just work for awhile and then not show up anymore. I knew she had a heart of gold but couldn't figure if she was either dumb or a brute for punishment, then one day her husband killed a guy with a fire extinguisher and I figured it out.


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## JW34 (Dec 13, 2012)

There isn't a magic number because what you spent in tools, supplies etc is going to be different from the next guy but considering you probably aren't looking at making millions and as a startup your initial investment in tools etc will be more than usual (or should be) I would think the amount you need to set aside would be a little less than some of the folks have suggested here. Next year when you're making your millions you can set aside 30% but for now you're not going to need that much. The sooner you get in touch with a tax professional the better. It will cost you even more money but will save you money in the end..


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## livinlife (Dec 18, 2012)

Thanks for all the helpful input guy. Really appreciate it


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