A few tax questions

dc843

Expert Expediter
Researching
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Planning on becoming O/O with a promaster. Been working for fleet owners so I know the business.

I have a few questions on the taxes....

They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

Thanks so much.
 

fastman_1

Veteran Expediter
Owner/Operator
Offline
Planning on becoming O/O with a promaster. Been working for fleet owners so I know the business.

I have a few questions on the taxes....

They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

Thanks so much.

A LLC is not needed to claim the mileage deduction that I know for sure. The rest I leave up to a accountant to take care of, you do have an accountant don't you?


Sent from Deep in the backwater swamp
 
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dc843

Expert Expediter
Researching
Offline
Planning on becoming O/O with a promaster. Been working for fleet owners so I know the business.

I have a few questions on the taxes....

They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

Thanks so much.

A LLC is not needed to claim the mileage deduction that I know for sure. The rest I leave up to a accountant to take care of, you do have an accountant don't you?


Sent from Deep in the backwater swamp
I do not as ive been working for fleet owners and my deductions have been standard enough for me to do myself with credit karma tax. I want to do all the profit and loss myself but i am going to pay someone to file for me. I guess i should get that person in line and ask them these questions.
 

Tobster317

Expert Expediter
Owner/Operator
Offline
Pay someone, it will be cheaper in the long run. You can get a pro for $1K-$1500 for the year with bookkeeping. You concentrate are making money and taking care of your equipment.
 

Ragman

Veteran Expediter
Retired Expediter
Offline
Planning on becoming O/O with a promaster. Been working for fleet owners so I know the business.

I have a few questions on the taxes....

They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

Thanks so much.

A LLC is not needed to claim the mileage deduction that I know for sure. The rest I leave up to a accountant to take care of, you do have an accountant don't you?


Sent from Deep in the backwater swamp
I do not as ive been working for fleet owners and my deductions have been standard enough for me to do myself with credit karma tax. I want to do all the profit and loss myself but i am going to pay someone to file for me. I guess i should get that person in line and ask them these questions.
Get an CPA that deals in trucking, not joe schmoe tax preparer.
 
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ntimevan

Veteran Expediter
Owner/Operator
Offline
Any reason i couldnt just do everything over the phone/internet with them?
Mine done by Business/Trucking CPA in Iowa ...
Done by appointment in Office only ... Less than 1 hour yearly ..Pay $300.. to office secretary before leaving .. been doing my taxes for 10 years and her office is 70 miles from my house .. but she is Very Good in the Tax Business ..

Stop the shortcuts ..
Find a top notch CPA in your area ... build a CPA/Client realationship ..

 

RoadTime

Veteran Expediter
Owner/Operator
Offline
They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

No to both.

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

Yes

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

Actually No. If you claim mileage deduction you can't claim fuel or general maintenance/repairs on the van. That's included in the mileage deduction and would be double dipping. In most cases for a one person operation you will come out far more ahead claiming mileage then itemizing for fuel/maintenance, etc. Also to consider, if you start on mileage you can switch to itemizing later, but if you start on itemizing you can't go back to mileage on current vehicle.
Note: Not to cause too much confusion using the either or term itemizing in this case. Using the mileage deduction there are still other itemized deductions you can claim, just more limited.

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

That should be fine. Personally, since becoming a Owner Operator, I've never shown enough profit to have to pay any tax ;)
 
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Treadmill

Veteran Expediter
Owner/Operator
Offline
They have to do with the mileage deduction....looks like last year it was 53.5cpm can be written off.

Do I need to form a LLC to claim this deduction or can it be done just by the broker paying me as a independent contractor?

No to both.

When I do this deduction, am I still able to claim my meal allowance 80% of $63 a day or whatever it is now?

Yes

when I do this deduction, what all is included in this that I couldn't write of separately? for example I'm sure I cant write off the cost of fuel while using this. Anything else?

Actually No. If you claim mileage deduction you can't claim fuel or general maintenance/repairs on the van. That's included in the mileage deduction and would be double dipping. In most cases for a one person operation you will come out far more ahead claiming mileage then itemizing for fuel/maintenance, etc. Also to consider, if you start on mileage you can switch to itemizing later, but if you start on itemizing you can't go back to mileage on current vehicle.
Note: Not to cause too much confusion using the either or term itemizing in this case. Using the mileage deduction there are still other itemized deductions you can claim, just more limited.

I planned on putting away 10% of my gross pay for taxes, will this be enough in general to cover me? what would you recommend?

That should be fine. Personally, since becoming a Owner Operator, I've never shown enough profit to have to pay any tax ;)
Me too.
 

robin280

Seasoned Expediter
Offline
I use H&R block. It is a little pricey but they are thorough and they will protect you if the IRS comes after you. I have taxes withheld from my pension and from social security every month. Therefore, I claim every penny I can find. Anything I do or use in my business gets written off. I then receive a hefty refund. My refund includes all the taxes that I have had withheld during that year. From what I hear from other drivers is that if you don't have any taxes withheld from any source, the mileage and per diem is enough to cover your complete 1099.
 

RoadTime

Veteran Expediter
Owner/Operator
Offline
I use H&R block. It is a little pricey but they are thorough and they will protect you if the IRS comes after you. I have taxes withheld from my pension and from social security every month. Therefore, I claim every penny I can find. Anything I do or use in my business gets written off. I then receive a hefty refund. My refund includes all the taxes that I have had withheld during that year. From what I hear from other drivers is that if you don't have any taxes withheld from any source, the mileage and per diem is enough to cover your complete 1099.

I've used Turbo Tax for years. I started with H&B Block, but at that time Block was missing too many things so I switched. The only times I have had to pay tax was when driving for a owner :rolleyes:
In that case, I would set a side some money or make estimated tax payments.

OP- Unless your totally clueless on taxes (and even then) I would still try to do you own first. A one person van operation is not that difficult to do on your own. Continue to seek out tax information as it pertains to your business and you will be up to speed in no time.

Both services basically walk you through everything to complete your tax returns before you have to pay anything, so it's worth it to become more familiar with your own taxes.

You can always have a Tax professional (someone that knows the trucking business) to review you return later, just would not be my starting point.

Knowledge is power ;)
 
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ntimevan

Veteran Expediter
Owner/Operator
Offline
I've used Turbo Tax for years. I started with H&B Block, but at that time Block was missing too many things so I switched. The only times I have had to pay tax was when driving for a owner :rolleyes:
In that case, I would set a side some money or make estimated tax payments.

OP- Unless your totally clueless on taxes (and even then) I would still try to do you own first. A one person van operation is not that difficult to do on your own. Continue to seek out tax information as it pertains to your business and you will be up to speed in no time.

Both services basically walk you through everything to complete your tax returns before you have to pay anything, so it's worth it to become more familiar with your own taxes.

You can always have a Tax professional (someone that knows the trucking business) to review you return later, just would not be my starting point.

Knowledge is power ;)
I use a monthly log type sheet of paper to keep track of Daily business miles (loads) also doubles as Per Diem records .. when at home .. personal miles are recorded seperate ..
12 sheets of paper a year ..
Add up Business miles ..
Add up Per Diem nights ..
CPA makes copies for her records ...
To me $300.. a year for Professional Tax help is cheap
Every year she flies to Chicago to attend IRS tax update training .. IRS Certification

I don't have Time to sit down and research Tax Law changes.. out here i am wanting to drive and make money ... when home its family time .. staring at a Computer screen all day when not driving is Lifeless to me .. living like a Robot..
But set up a Tax plan and follow through with it .. or drive a yellow cube van for 5 years and file No Taxes and then move back over seas ..

 
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geo

Veteran Expediter
Charter Member
Owner/Operator
US Navy
Offline
most important as other have said get a good truck tax account that know trucking. keep track of everything you spend. make a spread sheet for the week, for the month and year. so went you walk into your tax accountant he doesn't have to go thru everything you hand him in a box. remember time is money. talk to him how to set up your books. if you have a lap top, see if he has a program he recommends, to help you make it easier for you. good luck
 
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