If you do not already know

[Fkatz]

Hi all,

#1. if you are driving for an owner, and you are paying for fue you can take the standard Mileage Deduction, but you cannot take any othe deduction as far as the vehicle is concerned.

#2 Escrow is not Deductible, THIS IS NOT INCLUDED IN YOUR TOTAL 1099 INCOME AT ALL it is an expense that is held for you. and any expenses that is paid from the escow when you decide to leave Panther then those items are deductible.
Each escrow paymet that they receive in put into an escrow account, and Panther collects interest on your money period.

#3 the legal business code is 484120 for OTR, but you can use 492000. do not claim more than 100,000. You also have to deduct personal use miles. average 15-20 for Personal Use.

#4 Michael, How do you Claim depeciation on items that you purchase for the truck doing your taxes Old School

#5 Michael, You do not have to send any additionalpaperwork with the return if they have nquestiion, you just hav to prove it. ALSO do not let a IRS auditer any nearyour home or office
make s7ure you have electrnic fils forproof. GO TOTHEM. IF YO HAVE SOMETHINGTOHIDE.

eXAMPLE!
bUILT gARAGE FOR SHOP, BUT OVER 50% IS FOR PERSONAL USE/GAME ROOM, LANDSCAPING STORAG, IT WILL BE DISALLOWED AS A DEDUCTON.
Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

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[Voynik]

Hi all,

#1. if you are driving for an owner, and you are paying for fuel you can take the standard Mileage Deduction, but you cannot take any othe deduction as far as the vehicle is concerned.

Standard Mileage Rate includes vehicle depreciation, maintenance, fuel, insurance, etc. Where are you getting that a driver can take Standard Mileage Rate while only paying for fuel? IRS publication 463 chapter 4 states "If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year. You cannot deduct depreciation, lease payments, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees." which means that the owner could NOT deduct depreciation, maintenance and repairs, insurance and vehicle registration fees all of which were not paid for by the driver which invalidates the driver's ability to claim to the Standard Mileage Rate deduction. If a driver has done this and has been audited with the audit coming out clear, I'd like to hear from them.

#2 Escrow is not Deductible, THIS IS NOT INCLUDED IN YOUR TOTAL 1099 INCOME AT ALL it is an expense that is held for you. and any expenses that is paid from the escow when you decide to leave Panther then those items are deductible.
Each escrow paymet that they receive in put into an escrow account, and Panther collects interest on your money period.

It most definitely was included in my first year 1099 AND the release of the escrow was also included in my final year 1099.
{EDIT: I went back, using a spreadsheet, and recalculated my gross, from scratch using Panther's check details, and my gross revenue was exactly the escrow amount less than the gross reported on the 1099 for that year.}

As for the interest, it states in the contract that interest will acrue, "at a reasonable rate", during the duration the escrow is held by Panther. This is a prime case for a class action lawsuit against Panther as I haven't met one O/O who was ever paid any interest on the escrow when they left.

#3 the legal business code is 484120 for OTR, but you can use 492000. do not claim more than 100,000. You also have to deduct personal use miles. average 15-20 for Personal Use.

Thanks. Upon further digging I found 484200 series consists more of actual specialized requiring specialized equipment,such as flatbeds, tankers, or refrigerated trailers. (ie. household/office moving, car carrier, refrigerated units, hazardous waste, etc) So the proper code would be 484121 : General Freight Trucking, Long-Distance, Truckload defined as "establishments primarily engaged in providing long-distance general freight truckload (TL) trucking. These long-distance general freight truckload carrier establishments provide full truck movement of freight from origin to destination. The shipment of freight on a truck is characterized as a full single load not combined with other shipments." This would seem to describe expediting most accurately.

As for miles claimed, I've heard that 80,000 or more is the magic number for it to be flagged.

#4 Michael, How do you Claim depeciation on items that you purchase for the truck doing your taxes Old School

What are you refering to as far as items? For parts and maintenance, per publication 463 chapter 4 depreciation and such is included in the Standard Mileage Rate deduction. My actual expenses including the purchase of the van, registration/licensing fees, vehicle/cargo insurance and all maintenance over the course of the 15 months the van was on with Panther worked out to 18 cents per deductible mile plus fuel cost which averaged about 21 cents per mile. So I was allowed to write off 13 cents per mile <{EDIT} more than I spent.

However, I do almost all my own maintenance myself (diagnostics, fluid changes, spark plugs, suspension, brakes, engine accessories etc, usually on the road as I carry a compliment of tools). The only thing I farmed out/had done in a shop was a replacement rebuild rear-end but that was to satisfy Jasper's warranty requirement that the install be performed by a certified installer for the 1 yr,/100,000 mile warranty to be valid. I can do an awful lot of wrenching for $75+ dollars an hour.

#5 Michael, You do not have to send any additional paperwork with the return. if they have a question, you just have to prove it. ALSO do not let a IRS auditor any where near your home or office make sure you have electronic files for proof. GO TO THEM. IF YO HAVE SOMETHING TO HIDE

I have nothing to hide and, as I relied solely on van expediting for income, I don't have much of anything. ;O

 

[xmudman]

Another per diem question:

If I am near Pittsburgh, I stay at my daughter's apartment. That is NOT my home of record. Am I allowed to claim per diem for those days, or only the ones I spend huddled up in the van?

 

[Sfsafds]

Is there a special Schedule C form with this check box?

 

[Fkatz]

Hi All, This thread was actually posted last year in regards to the Per Deim. This has been updated late last month, around September 20,2015
Stating the new Per Diem effective January 1, 2016 $63.00 per day sub ot 80%, and $68.00 for Canada.

check out the other thread stating this post

Frank





A. Effective January 1, 2015, PER DEIM REMAINS AT $59.00 SUBJECT TO 80% for days logged, or for van drivers, either bill of ladings, trip pads or individual sheets showing each load

B. Cargo Van Owners and Drivers who are contracted to Owners
May use the Standard Mileage Rate of $0.57.5 cents per mile

You cannot use the miles based on beginning and ending for the year

You must keep each load separately showing the following:

Deadhead to either staging area, or load pick-up, Delivery, and to a staging area (truckstop) were you are going to stay overnight. or go home. the load is considered complete here.

If you leave the staging area, or overnight place for any reason, except a repair shop, you cannot use the mileage at all.

C. If you have a major repair, Engine, or Transmission. these items must be amortized or depreciated over 5 years at Straight line and it also depends on the date that the major repair is completed.



IF you have an other questions please do not hesitate to ask.

Thank You,

Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Welcome | Frank's Tax $ Business Service

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.
*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov