[ATeam]

If expediters do their own bookeeping and taxes, what tax forms do they use?

[Fkatz]

Hi A team
#1 WHAT TYPE OF UNIT ARE YOU RUNNING. ("B, C, D, E")
#2 ARE YOU A SOLE PROPREITOR,PARTNERSHIP, OR CORPORATION
#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
#4 AND FINALLY WHAT TAX SOFTWARE ARE YOU USING. 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.

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.

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.

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.

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.
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.

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.

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

[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

[Fkatz]

hi A-Team again,
I am also a Tax Pro who specializes in trucking, because
I am a owner operator signed on with CTX since 1998, now I am just the owner with a driver. Since I had my open heart surgery in August. I also drove over the road with KLLM transport Services, and Carretta Trucking since 1990 plus I have been preparing income tax returns since 1973

in answer to the diem pay question,

the per diem pay does not go on a separate form, it still is entered on the SCH C under meals & entertainment, if you write on the line subject to DOT regs and x the days logged out or lets say your out on the road 250 days, this is x $38.00 per day= approx $9500 times 65% which is your deduction

there is another problem that you would encounter, and that is the 1099MISC which the company will issue to you, it willbe issued in only your name, the primary/or lead driver, she also can take the diem pay for herself.


You are a married team they are only going to give you 1- 1099misc, then you have to make out a 1099 and pay your wife her share, and she inturn must also make out a SCH C

The publications do not give you all the deductions or any information on trucking except that the diem pay, you have to go through all item and see if they are deductiable, remember all items that you purchase for the truck are deductiable, its just a matter of putting the correct itme in the right column that you are allowed by being a trucker,

Frank Katz
Franks Tax & Business Service