[ATeam]

>Hi A team
>#1 WHAT TYPE OF UNIT ARE YOU RUNNING. ("B, C, D, E")

We (married team) will run a D unit.

>#2 ARE YOU A SOLE PROPREITOR,PARTNERSHIP, OR CORPORATION

Sole Proprietor, wondering if it's wise to incorporate.

>#3 DO YOU KNOW EXACTLY WHERE TO LIST ALL ITEMS THAT ARE
>DEDUCTIABLE TO YOU IN THE TRANSPORTATION INDUSTRY, OR WOULD
>YOU BE GUESSING. SINCE YOU WANTED TO KNOW WHAT FORMS YOU
>NEEDED

I want to know the forms so I can download the instructions from the IRS site and read the rules. We've already selected a tax preparer that specializes in truckers. The purpose behind my question is not to become a better tax preparer. It's to become a better tax preparer's client.

>#4 AND FINALLY WHAT TAX SOFTWARE ARE YOU USING.

None. I've always done my taxes with a pencil, calculator and paper forms (1040, Schedule C, Schedule SE). Trucking is new to us. We'll have a tax pro do our taxes for the first year or two to learn how it's done.

IF IT IS
>INTUIT TURBO TAX, KIPLINGERS TAX CUT, OR TAX ACT THEY ALL
>HAVE TO BE UPGRADED REMEMBER YOU MUST GO TO THERE WEB SITE
>AND DO AN UPGRADE PRIOR TO DOING YOUR RETURN. THE SOFTWARE
>WAS MADE BEFORE 12/1/2001 AND DOES NOT REFLECT ANY TAX
>CHANGES, I HAVE HAD 4 UPGRADES SINCE JAN 20, 2003, STATES
>ARE UPGRADE QUITE A NUMBER OF TIMES, THE LATEST IS MARCH 25,
>2003 FOR ALL THE STATES. THAT IS MY SOFTWARE WHICH IS MADE
>FOR TAX PROFESSIONALS ONLY.

That's why I do my taxes "by hand." No need to purchase software and then keep up with "improvements." I've found it easier and cheaper to track everything, add it all up, and write the totals on paper forms. Electronic filing is cool, but overrated.

>
>the forms you would need would be the regular 1040,sSCH "A"
>FOR ITEMIZED Sch "C" for business if you are a sole
>propreitor only, Sch "SE" if you make a profit, 4562
>depreciation form, 8829 if you have a home office(bUT IT
>cannot be a table, or desk in a room that is useD for other
>purposes for instance, a desk in a bedroom, IT MUST BE A
>SEPARATE ROOM PERIOD.
>
>IF YOU ARE A INCORPORATED, WEATHER A "S" CORP, LLC, OR
>PARTNERSHIP THEN A DIFFERENT TAX FORM MUST BE FILLED OUT
>ALTOGETHER, 1120 CORP, AND 1065 PARTNERSHIPS. PLUS YOUR
>REGULAR 1040 YOU COULD BE DOUBLE TAXED THIS WAY. PAYING
>CORPORATE TAXES AND PERSONAL TAXES.

Thank you. That's the answer I sought with the question I asked.

>
>IF THIS IS YOUR FIRST YEAR IN BUSINESS, IF DONE RIGHT, YOU
>SHOULD HAVE NO REGULAR INCOME TAX TO PAY, AND SHOW A LOSS,
>BUT, THERE IS THE POSSIBILITY THAT IF YOU MAKE A PROFIT,
>YOU WOULD HAVE TO PAY SOCIAL SECURITY TAX.

I would not regard a tax-free year as a sign of success. For me, after-tax profits are the name of the game.

>
>IF YOU USE THE HOME OFFICE YOU MUST ENTER THE HOME ITEMS ON
>THAT
>MORTGAGE INTEREST, UTILITIES, HOMEOWNERS INSURANCE, AND ETC,
>INSTEAD OF THE SCH A, ITEMIZED DEDUCTIONS, PLUS
>DEPRECIATION(FORM 4562) OF YOUR HOME. WHICH HAS TO BE
>RECAPTURED WHEN IT IS SOLD. AS THE SAME WITH YOUR TRUCK,
>REMEMBER YOUR TRUCK, HOUSE, MAJOR PURCHASES, TV,VCR, CB,
>REFRIG, MATTRESSES IF NOT INCLUDED WHEN PURCHASED.

I'm well-acquainted with home office tax issues.

>
>IF YOU FEEL THAT IT IS MUCH TO MUCH FOR YOU TO UNDERSTAND
>AND WHAT TO PUT WHERE, I WILL DO THEM FOR YOU, IT WOULD
>AVERAGE BETWEEN $175 TO $300 DEPENDING ON THE FORMS AND
>INFORMATION THAT YOU SUPPLY.

Thank you for the offer. It's not too much for me to understand. As I've said, we've already selected a tax advisor that specializes in trucking. Being new to expidited trucking, we'll have plenty of other things to think about. Hiring a tax advisor will free our minds from taxes for the first year or two. We'll probably do our own taxes after we've seen a pro do it once or twice.

>PLUS IF YOU DO NOT HAVE THE TIME TO COMPLETE THE RETURN
>PRIOR TO 4/15 YOU MAY ASK FOR AN EXTENSION ON FORM 4868. IF
>YOU THINK YOU WOULD OWE TAX AN AMOUNT MUST BE SENT WITH IT.
>$500, $1000. JUST DEPENDS WHAT YOU FEEL IT WOULD BE.

Good of you to point this out, but it's not an issue here.


>REMEMBER IF YOU TAKE THE STANDARD MILEAGE DEDUCTION FOR A B,
>OR C UNIT YOU CANNOT TAKE ACTUAL EXPENSES WHICH WOULD BE
>FUEL, OIL, REPAIRS, MAINTAINCE, TIRES, INSURANCE,ETC
>
>BUT YOU CAN TAKE THE PERMITS, PLATES, DOT PHYSICAL, CDL
>LICENSE FEES, TOLLS, THE OCCUPATIONAL INSURANCE, ADVANCE
>FEES ONLY, COMCHECK FEES, YOUR BANK FEES, PLUS MANY MORE.


You did not mention per diem. What tax form deals with per diem? (Form number is a sufficient answer. No need to put a lot of time into me.)


>FRANK
>FRANKS TAX AND BUSINESS SERVICE
>308 E KING ST
>KINGS MOUNTAIN, NC 28086
>704-739-4039
>FAX: 704-739-3934