[Twmaster]

OK, I am a tad confused here. I am running a van and while I can deduct the 36 cents per mile what deductions does offset? I understand I will not be able to deduct fuel if I use the per mile basis. What else can I not itemize? Repairs? Depreciation? Tolls?

Thanks in advance.

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Mike N

[Fkatz]

HI MIKE N,
YOUR QUESTION IS , I am a tad confused here. I am running a van and while I can deduct the 36 cents per mile what deductions does offset? I understand I will not be able to deduct fuel if I use the per mile basis. What else can I not itemize? Repairs? Depreciation? Tolls?
Thanks in advance.

--
ANSWER; IF YOU USE THE MILEAGE DEDUCTION YOU CANNOT TAKE THE ACTUAL EXPENSES THAT OTHERWISE PERTAIN TO THE VAN:
DEPRECIATION ON VEHICLE ONLY
FUEL
REPAIRS
TIRES
PLUS ANY OTHER PART OF THE VAN ITSELF
IT WOULD DEPEND ON THE WAY THE RETURN IS FIGURED, I FIGURE THE RETURN DOING IT BOTH WAYS, IF YOU TAKE MILEAGE YOU CAN ONLY GO TO ACTUAL ONCE, BUT YOU HAVE TO STAY WITH THE ACTUAL EXPENSES ONCE IT IS CHANGED YOU CANNOT GO BACK TO THE MILEAGE DEDUCTION.
IF YOU START WITH ACTUAL EXPENSES, YOU CANNOT GO TO MILEAGE AT ALL, IT MUST STAY ACTUAL EXPENSE THROUGHOUT THE LIFE OF THE VAN
NORMALLY IT WORKS OUT BETTER TAKING THE MILEAGE THEN ACTUAL, EXSPECIALLY WITH A NEW VAN DUE TO THE WARRANTEES
YOU DO GET YOUR PER DIEM, $40.00 US AND $42.00 CANADA PER DAY WITH PROOF, ANY MOTELS YOU TAKE, TOLLS, PLUS THE DEPRECIATION ON THE EQUIPMENT THAT IS PURCHASED- LAP TOP COMPUTER, PRINTER, MATTRESS, REFRIG/COOLER MIRCOWAVE,SATELLITE RADIO, CB, TV/VCR, OR BOTH,PLUS ANY OTHER ITEMS OVER $100.00
THERE ARE MANY OTHER DEDUCTION THAT CAN ALSO BE TAKEN, iF YOU WOULD LIKE A DEDUCTION ITEM INFORMATION SHEET I WILL BE GLAD TO SEND YOU ONE FREE OF CHARGE, JUST GIVE ME YOUR NAME & ADDRESS.

iF YOU WOULD ALSO LIKE FOR ME TO DO YOUR RETURN, PLEASE CONTACT ME,
OR FOR ANY ADDITIONAL INFORMATION THAT YOU WOULD NEED GIVE ME A CALL


FRANKS TAX SERVICE
226 CHEROKEE ST
KING MOUNTAIN, NC
704-739-4039
fAX: 704-739-3934
CELL 704-300-5143

Frank,
Can you give us a genera idea of what it cost for someone (OK, you) to do our taxes and what it includes. I realize every situation is different but I'm looking for just a general idea of a company like your's can do for us.

[Fkatz]

Hi Mike again,
I understand that your still confused.

I will give you an example

Your 1099MISC that you recieve from xxx company is $50,000. this is you gross income for the business part of your SCH C

Then your all of your expenses are deducted from the that gross income
Truckers have a bonus expense, a standard diem for everyday either logged or proved with B/L copies that they were on the road for that number of days. example 300 days @ $40.00 per day is $12,000 times 65% would equal a $7,800 deduction for you.

your deduction for mileage would give you the better deduction amount on the return, but if you own a "D", Or "E" Unit you are suppose to take the actual expenses to run your truck, the mileage deduction is $ .36 cent per mile period. so if you run 45,000 miles x .36 its a $17,280 deduction.

so you made $50,000 and just thoughs 2 deductions gives you a $25,080 deduction before you use the other deductions that are available to you.
These are a lot of other deductions that can be taken, Which I cannot mention all here.
Then you have your cell phone, showers, laundry,satellite charges,occ ins. bob tail ins, QC installation and permits, escrow, sign up fees, CDL fees, dot phy, and other items
Office supplies, pens, log books, postage, trip pak, fedex
owner operators assoc fees,
Supplies, paper towel, windex, soap,cleaning supplies, load locks, cargo straps sheets pillows mattress, and other etc.

so after all the deductions you either should make a small profit or a loss the first year,

you can show a loss for the first 5 years if you have to when you start a new business.

but the mileage and the diem are basically hidden deduction for you