Before signing on
- Thread starter buddy
- Start date
Before signing on
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Before we (husband & wife) sign on with an owner, what if anything schould be prepared for referance our tax structure etc.?
Thanks, Buddy
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Hi Buddy,
Since the tax law changed, in 2007 for 2008 and onward, A husband and wife is considered a joint venture for tax purposes it is not considered a Partnership. You are considered as a sole-propreitorship and share in the total income and all expenses are figured and split equally between both parties. except where the truck is concerned,
So you do not have to worry about a partnership being formed which would have to be registered in your home state. if you are signing on with an owner, He has the choice of making out 2-1099 Misc, one for each of you, or He can make only One to who ever the lead driver is.
If you have any additional questions please do not hesitate to ask.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
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Before we (husband & wife) sign on with an owner, what if anything schould be prepared for referance our tax structure etc.?
Thanks, Buddy
__________________
Hi Buddy,
Since the tax law changed, in 2007 for 2008 and onward, A husband and wife is considered a joint venture for tax purposes it is not considered a Partnership. You are considered as a sole-propreitorship and share in the total income and all expenses are figured and split equally between both parties. except where the truck is concerned,
So you do not have to worry about a partnership being formed which would have to be registered in your home state. if you are signing on with an owner, He has the choice of making out 2-1099 Misc, one for each of you, or He can make only One to who ever the lead driver is.
If you have any additional questions please do not hesitate to ask.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
In the case of a husband/wife team driving for an owner, would it be better to have the owner make one 1099 to the husband and then have the husband make a 1099 to the wife for a lesser share...I was thinking that this way they would both be eligible for the per diem but maybe would save on social security tax? Wouldn't the wife be eligible to draw off her husbands social security if it is more than hers anyway? I may be completely wrong, but was just wondering if this is a possiblity?
That is the way it use to be before 2007, Now since it is consided a husband and wife joint venture 2 1099 do not have to be made out, but 2 Sch C's still do.and all deductions except for the truck depreciation is split if a truck is purchase. but since the turck is owned by a 3rd party it does not make any difference., and she is still entieled to use the per diem deduction no matter what.
the only time a wife draws off her husbands SS is after he passes. not before
That is the way it use to be before 2007, Now since it is consided a husband and wife joint venture 2 1099 do not have to be made out, but 2 Sch C's still do.and all deductions except for the truck depreciation is split if a truck is purchase. but since the turck is owned by a 3rd party it does not make any difference., and she is still entieled to use the per diem deduction no matter what.
the only time a wife draws off her husbands SS is after he passes. not before