In response to message #1
First of all it would depend on what type of unit you are driving, basically the only unit that you can take the standard mileage deduction is a Cargo van,
If you drive a Cargo van or van/pickup with a box and take the standard mileage you can only take Tolls, you cannot take fuel, repairs, tires, insurance, interest, payments, tuck washes, etc. which really works out better in the long run. you can take motels
What really works out well? taking the standard mileage or the actual?
Now standard is for EVERY mile driven? loaded and unloaded? from the time we leave home till return time?
BTW I am Canadian, moved to South Dakota in the fall our CO is U.S. based running with U.S. plates in a Sprinter Cargo Van. My wife is part of the team she is American. BTW, SD has NO personal income tax and NO corporate tax.
As for per diem...being a team are we BOTH allowed the FULL per diem?
My accountant in Canada was offish about this as being a husband and wife Revenue Canada might not accept this FULL deduction. so he reduced hers by half of what was allowed and they didn't object.
Have you heard of any good tax accountants in the Rapid City area?
tO YOUR QUESTIONS:
THE STANDARD MILEAGE FOR 2005 IS AS FOLLOWS WEATHER IS BE IN CANADA OR WHEREVER, IS
FROM JANUARY 1 THROUGH AUGUST 31 IS 40.5 CENT PER MILE
FROM SEPT 1, THROUGH DECEMBER 31ST IS 48.5 CENTS PER MILE. and for tax year 2006 it will be 44.5 cents per mile. FOR VANS.
IN REFERENCE TO THE PER DIEM, YOU PROBABLY ONLY RECIEVE ONLY 1 1099MIsc from the company your are leased on to. so what would be done is as follows for a US Return I have no Idea as to Canada.
you would have to have made out 2 Sch C's (Profit/Loss from business or profession. the main one for you and the second for your wife,
on hers, in the meals and entertainment line you enter the full amount of $41.00 per day x the number of days out in the US and $46 per day for Canada. that is subject to 70%, you cannot take the full amount as a deduction only 70% and each of you get that,
then on the misc line you put her showers, or what ever other items she is taking as a deduction. the balance of dedcution are on your SCH C>
Tell him that its not 1/2 it 70% of the total
in other words. lets say you were out 300 days.x 41.00= $12,300
and in canada 10 days so that would be another 460
Total would be $12,760
then you multiply that by 70% so the actual deduction is $ 8932.00 each
As far as a good accountant in Rapid City, No I do not know of any that knows trucking. but I have cleints who send there information to me from Nevada, Iowa, Calif, Ariz I do about 40 drivers from all states.
Frank
First of all it would depend on what type of unit you are driving, basically the only unit that you can take the standard mileage deduction is a Cargo van,
If you drive a Cargo van or van/pickup with a box and take the standard mileage you can only take Tolls, you cannot take fuel, repairs, tires, insurance, interest, payments, tuck washes, etc. which really works out better in the long run. you can take motels
What really works out well? taking the standard mileage or the actual?
Now standard is for EVERY mile driven? loaded and unloaded? from the time we leave home till return time?
BTW I am Canadian, moved to South Dakota in the fall our CO is U.S. based running with U.S. plates in a Sprinter Cargo Van. My wife is part of the team she is American. BTW, SD has NO personal income tax and NO corporate tax.
As for per diem...being a team are we BOTH allowed the FULL per diem?
My accountant in Canada was offish about this as being a husband and wife Revenue Canada might not accept this FULL deduction. so he reduced hers by half of what was allowed and they didn't object.
Have you heard of any good tax accountants in the Rapid City area?
tO YOUR QUESTIONS:
THE STANDARD MILEAGE FOR 2005 IS AS FOLLOWS WEATHER IS BE IN CANADA OR WHEREVER, IS
FROM JANUARY 1 THROUGH AUGUST 31 IS 40.5 CENT PER MILE
FROM SEPT 1, THROUGH DECEMBER 31ST IS 48.5 CENTS PER MILE. and for tax year 2006 it will be 44.5 cents per mile. FOR VANS.
IN REFERENCE TO THE PER DIEM, YOU PROBABLY ONLY RECIEVE ONLY 1 1099MIsc from the company your are leased on to. so what would be done is as follows for a US Return I have no Idea as to Canada.
you would have to have made out 2 Sch C's (Profit/Loss from business or profession. the main one for you and the second for your wife,
on hers, in the meals and entertainment line you enter the full amount of $41.00 per day x the number of days out in the US and $46 per day for Canada. that is subject to 70%, you cannot take the full amount as a deduction only 70% and each of you get that,
then on the misc line you put her showers, or what ever other items she is taking as a deduction. the balance of dedcution are on your SCH C>
Tell him that its not 1/2 it 70% of the total
in other words. lets say you were out 300 days.x 41.00= $12,300
and in canada 10 days so that would be another 460
Total would be $12,760
then you multiply that by 70% so the actual deduction is $ 8932.00 each
As far as a good accountant in Rapid City, No I do not know of any that knows trucking. but I have cleints who send there information to me from Nevada, Iowa, Calif, Ariz I do about 40 drivers from all states.
Frank
