what can i deduct from taxes?fuel,food,tolls,work clothes,office supplies.i'm going into expediting blind.i'm going to work for an o/o first.i have an accountant but she doesn't think i can make alot of money doing this.i do not know if i should incorp/or LLC, or just do nothing.i own my house,and don't want somebody suing me if something happens,and taking everything i have.how much to incorp/LLC?if i drive a van for a o/o what can i deduct?if i drive a str.trk,what can i deduct.i know i can deduct either $35 per day if i run a log book,or perdiem.and what can i deduct as an o/o.if someone can help me out ,it will make my transfer to expediting a little easier. THANKS,EARL TASSA
thanks,earl
Hi Earl,
Sorry for the delay in getting back to you but I just got back into the office due to a couple of hospital stays. 1 for Dihydration and the other for an aynurism in the lower aorta operation. they put a Stent in. So lets try ans answer your questions.
1. what can i deduct from taxes?fuel,food,tolls,work clothes,office supplies.?
All items are deductiable except your clothes, they must have a company monogram in order to be deductiable. and they are strick on that.
2.i have an accountant but she doesn't think i can make alot of money doing this.
it seem that if she don't think you can make money, she does not know about trucker taxes and write offs that are allowable to you and not to other businesses. Suggestion, Find one that does.
3. i do not know if i should incorp/or LLC, or just do nothing.i own my house,and don't want somebody suing me if something happens,and taking everything i have.how much to incorp/LLC?
Since you are a Single owner or driver there are advantages and disadvantages in either a Corp or and LLC, but LLC is used primary in a partnership or where more than one person is concerned. not suggested the first one or two years. see if you like it first and plan on staying in it for the long run before incorportation.
Main disadvantage of Corp is possibility of double taxation, have to maintain very accurate records, have to make a payroll even if it to yourself, pay federal tax, SS and Medicare, monthly or Quarterly, make out quarterly payroll tax and pay unemployment tax. must keep workmen comp, too long to explain all. Can E-mail me at [
[email protected]]
4. drive a van for a o/o what can i deduct?if i drive a str.trk,what can i deduct.i know i can deduct either $35 per day if i run a log book,or perdiem.and what can i deduct as an o/o
it doesn't matter which you drive, you can deduct all items.
but you can deduct mileage in a cargo van, but not in a str. or TT
as far as the log book, if if you drive any of the trucks you can take the standard truckers per diem, of $41 per day subject to 70% for 2005, 2006,and 2007 is 75%, and 2008 and beyond is back to the old 80% deduction that it was in 1996.
Earl I have a Tax package that is available with information that you can use, and you can also download and print, the following book.
from [
www.partners-in-business.com]which was written by Volvo trucks and Overdrive Magazine. to you at no charge, please forward your name, address and city via my e-amil adderss [
[email protected]]
thank you for your inquiry
Franklin Katz, ATP
Frank's Tax & Business Services
