Hi Ben,
And a Happy New year.
In reference to you question, you can do your own or have someone do it for you, but expect to pay around $40-60 per month depending on weather your incorporated, partnership, or sole proprietor.
But, before you call a CPA, or anyother person to do your bookkeeping better have them checked out as far as knowing the transportation industry. In the following paragraph you will find a number of questions to ask a CPA, or any other person who does taxes, you will see what I mean. but, if you want, just get your items together, either on a floppy,out the orginal receipts and Fed-ex/DHL, or thru the post office using Priority Mail, put your totals for each on a columar pad, and send them to me, I can do your bookkeeping weekly, monthly, quarterly, or whenever you want.
If you do not know already, I drove a Tractor/Trailer from 1991 thru 1996, and have been an expediter since 1998 signed on to CTX. Now since my Open Heart Surgery in August, I cannot drive, but do have a driver on my Cargo Van. and doing income taxes since 1975, so I am pretty well informed on the industry itself.
ok HERE IS THE ARTICLE I AM TALKING about
:
HOW CAN YOUR TELL IF YOUR TAX PREPARER KNOWS ABOUT TRUCKS, AND THE TRUCKING INDUSTRY????.
The first thing you should do is ask him a few question like, Have you ever driven a Truck or know what’s involved in the trucking industry?. Do you know what a lumper is?, How bout a Load Locks?, Can I depreciate my truck over a three- or five- year period? If he answers anything but what you know as a driver for the first 3 items. The Standard Mileage Deduction, and 5 years for depreciation of your tractor,or stragiht truck. “RUN”. ( You better know the answer to the first three. If not, you are in deep trouble!, You are probably going to be audited, owe additional tax, plus penalty and interest, and If you call him, to find out why. HE MIGHT!, THAT IS MIGHT return your call
Tractors and Straight Trucks over 26,000 lbs GVW. are listed in the Class Life Table of the depreciation instructions as 00.26, and have a class life of 4 years but, depreciated over 3 years. (NO STANDARD MILEAGE DEDUCTION IS ALLOWED. BUT HAS BEEN USED??????
Trailers, trailer mounted containers, flat beds, refrigerated trailers are listed as 00.27 and are listed as 6 year life and 5 yeas depreciated.
Straight Trucks listed between 13,000 lbs & 26,000 lbs GVW, are listed as Class 00.242, with a life of 6 years and depreciated over 5 years. This includes bucket trucks, & straight trucks (BASICALLY THIS IS A GRAY AREA, SOME OWNERS/DRIVERS ARE CLAIMING THE STANDARD MILEAGE DEDUCTION, BUT THE LAW STATES THAT THE ACTUAL EXPENSES ARE SUPPOSED TO BE USED.
Cut Away Cargo Vans & light trucks with a 10-16 ft box, who weight BETWWEEN 10,000 and 13,000 lbs loaded GVW are listed as 00.241, with a 4 year class and over 5 years that they can be depreciated. STANDARD MILEAGE DEDUCTION BASICALLY IS NOT ALLOWED, BUT IS VERY OFTEN USED.
Cargo Vans, Automobiles, and Pick-up Trucks, can take the Standard mileage deduction. But, If you decide to take actual expenses and not the standard mileage deduction you are only allowed to depreciate the vehicle for 5 years, with a 3 year life and listed as 00.22.
The lax of tax knowledge, not taking all the deductions you are entitled to, and money management, are the three biggest reasons that Drivers fail in the first two years of business. Winding up going bankrupt, or in other financial situations. Even though every driver knows how to be creative and wheel and deal for a load. But tax computation is something that you should leave to the professional that knows the trucking industry.
DO YOU DISAGREE?, WOULD YOU LIKE TO BET YOUR TRUCK ON IT????
By: Franklin Katz
Frank’s Tax & Business Service,
www.1040.com/Frankstax
www.Tax-directory.com/NC/Frankstax.html
704-739-4039,
Fax: 704-739-3934
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