You may have answered this before, but I don't recall. The wife and I run as a team, can we each claim the per diem or do we just get one for both of us. If we can claim one for each of us, what needs to be done so as to avoid an audit?

TIA,

Joe

[Fkatz]

1/30/02

Good Evening JOE,

In Reference to your question the Per Deim Pay would be for both the parties involve. Only one problem arrises from this. You will receive a 1099 Misc in only one persons name, but there a possibility it will be made out to both of you, but I doubt it. Yes you can both use the deim pay, BUT, 2 SCH C'S PROFIT OR LOSS FROM BUSINESS OR PROFESSION. HAVE TO BE MADE OUT AND EXPENSE EQUAL TO BOTH PARTIES. SO IF YOU CLAIM 150 SHOWERS FOR 300 DAYS LOGGED, THEN YOUR WIFE HAS TO DO THE SAME. AND CONTINUE DOWN ON ALL TRUCK EXPENSES INCLUDING FUEL, TOLLS, MAINTENANCE, REPAIRES, AND ETC.

FRANK

Thanks for the quick comeback, Frank.. I think the 1099 is just in my name, because the lease is. I had once considered incorporating and probably should have gone that way, instead.

[Fkatz]

JOBON,

I dont think that incorporating is the answer, the only protection that incorporting is (that you have a IF??) and that is a large question
IF>>>>> if you use your home or other personal property that you own for collateral and go bust it is not protected from the creditors.
AND
With a Corporation you must draw some kind of salary, make out w-2 for both of you at the end of year, Pay Quarterly taxes on the salary you draw, then you might be double taxed, I do not recomend it right at the present time, even a "S" or Limited Liability Corp "LLC" corp. Keep with the Sole propreitorship unles you need the protection of a corportation. or if you start making mucho bucks,or expand to a small fleet. 2-5 trucks. But within a sole propreitorship you only have to work on your regular 1040 return, and not worry about 1120S forms, which are complicated, and is very time comsumming to understand in its preparation. it would be like double your standard return in pricing. the Protection a corporation gives you is that it cannot take the personal possessions that you own if you do file for corporation insolvancy as long as you invest Cash and not personal property.
I am not a lawyer and know very little about going bankrupt. that you would have to talk to a professional in that field to find out the exact laws.

Frank