Hi, its me again, I know all of you know about the regular income tax filing season deadline, and the extension that is available for you if you feel that you will not have enough time to get your information together for your tax preparer. First of all, here is a little advice as to what is happening! If you are a Cargo Van Driver and do your own taxes with over the counter software such as Turbo Tax, Tax Act, Tax Cut, your chances of being audited are increased by 27%. The reason for these audits is due two major items. the standard mileage rate, and the Per Diem. In reference to the Per Diem, this must be as accurate as using a log book in you van. which is not required by the DOT. AS YET! So you would have to prove it by using some sort of daily log, I have used a log book myself for the tax per diem only, since it is again not required to be used in vehicles under 10,000 GWV. If you have a Hazmat load it is required for that load only even in a van. so it doesn't hurt to use one. You have to remember your Per Diem starts the first day you are dispatched, and at what time. which means that you must base your day for the dispatch to the day you actually return to you residential place of abode. and it is based by quarter days, midnight to 6 am, 6 am to Noon, noon to 6 PM and 6 PM to Midnight. so if you lease a 3pm you get 1/2 day for the dispatched day, and depending on the actual time you pull into your home driveway. lets say 5 Pm. that 3/4 of a day . plus the days in between. This is what the IRS looks for. The Standard Mileage Rate! You cannot use the yearly figure based on the beginning and ending mileage. The IRS requires that you detail each load separately . WHOLE LOTS OF FUN, HA! HA! Your Mileage log must be detailed according to the IRS for tax years 2013 and forwarded. it must show DATE- Time beginning Mileage, mileage at time of stop/eating/fueling etc., mileage at Delivery, and then mileage to a truck stop for layover. that is where your load ends. and mileage ends. for the day, and then it starts all over.. there must be 1 load per sheet to prove your deduction. Its not me, it is what the IRS requires for compliance to prove the deduction, otherwise it definitely will be disallowed. and you will then have to prove your actual expenses and mileage rate will not be allowed for any years in the future. Another item is this, if you use the mileage rate, and you do not have "Quote" in your contract that the leasing company has EXCULSIVE USE OF YOUR VEHICLE, THEN YOUR ARE CONSIDED "FOR HIRE" AND THE STANDARD MILEAGE RATE WILL DEFINITELY BE DISALLOWED AND YOU LOSE THE DEDUCTION. THAT IS WHY YOU KEEP YOUR ACTUAL EXPENSE RECIEPTS FOR FUEL, TOLLS, REPAIRS, MAINTENANCE, TIRES, LIABILITY/BOBTAIL, Franklin Katz, RTRP, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC28086
Local # 704-739-4039 Toll Free# 877-857-1040
E-Mail: [email protected])
Web: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
IRS Circular 230 Notice: Unless expressly stated otherwise inthis
transmission, any tax advice contained herein, forwarded with or attached to
this message was not and is not intended to be used, nor may it be relied
upon or used, by any taxpayer for the purpose of (1) the avoidance of any
tax-related penalties under the Internal Revenue Code or applicable state or
local tax law provisions, or (2) promoting, marketing or recommending to
another party any tax transaction or tax-related matters that may be
addressed herein.
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