If you do not already know

[Fkatz]

Hi All,

A. Effective January 1, 2015, PER DEIM REMAINS AT $59.00 SUBJECT TO 80% for days logged, or for van drivers, either bill of ladings, trip pads or individual sheets showing each load

B. Cargo Van Owners and Drivers who are contracted to Owners
May use the Standard Mileage Rate of $0.57.5 cents per mile

You cannot use the miles based on beginning and ending for the year

You must keep each load separately showing the following:

Deadhead to either staging area, or load pick-up, Delivery, and to a staging area (truckstop) were you are going to stay overnight. or go home. the load is considered complete here.

If you leave the staging area, or overnight place for any reason, except a repair shop, you cannot use the mileage at all.

C. If you have a major repair, Engine, or Transmission. these items must be amortized or depreciated over 5 years at Straight line and it also depends on the date that the major repair is completed.



IF you have an other questions please do not hesitate to ask.

Thank You,

Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

 

[fifaref2]

Hi All,

A. Effective January 1, 2015, PER DEIM REMAINS AT $59.00 SUBJECT TO 80% for days logged, or for van drivers, either bill of ladings, trip pads or individual sheets showing each load

B. Cargo Van Owners and Drivers who are contracted to Owners
May use the Standard Mileage Rate of $0.57.5 cents per mile

You cannot use the miles based on beginning and ending for the year

You must keep each load separately showing the following:

Deadhead to either staging area, or load pick-up, Delivery, and to a staging area (truckstop) were you are going to stay overnight. or go home. the load is considered complete here.

If you leave the staging area, or overnight place for any reason, except a repair shop, you cannot use the mileage at all.

C. If you have a major repair, Engine, or Transmission. these items must be amortized or depreciated over 5 years at Straight line and it also depends on the date that the major repair is completed.



IF you have an other questions please do not hesitate to ask.

Thank You,

Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

Hey Frank
Is there a document you have that's already ready to use that's accessible for sprinter/cargo drivers? I recall one from your website but wasn't sure. Mike

 

[tknight]

Can you take a per diem if you don't pay yourself? I know that sounds funny

 

[Fkatz]

yes i do, its basic, or you can use a Steno Pad, orany type of Spread sheet on your computer. for proof.

I used the left side for the DatePU , Time &Shipper/Date Deliver -Time, Reciever,
Right side For Mileage, and when I left to pick-up i put the start mileage on top and every time i stopped to Eat, Shower, or fuel I would mark it plus the mileage after Delivery to the Staging area/Truckstop to stay overnight, THS IS YOUR ENDING MILEAGE FOR THE LOAD.

Email me directly for the form in the address below

Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

 

[xmudman]

Can you take diem AND m&ie on the same day, or do the feds expect you to eat and sleep (in a motel) all on $59.00? If so, where are the $35-all-in motels located? This has confused me forever.

...and what if you sleep in the truck?

Also, if you could, explain the full vs partial per diem on your first/last day out.

Thanks

 

[Fkatz]

Hi Tknight
it does not matter weather you pay yourself or not the per diem is yours to take
Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

 

[Fkatz]

Can you take diem AND m&ie on the same day, or do the feds expect you to eat and sleep (in a motel) all on $59.00? If so, where are the $35-all-in motels located? This has confused me forever.

...and what if you sleep in the truck?

Also, if you could, explain the full vs partial per diem on your first/last day out.

Thanks

The per deim of $59.00 per day is a deduction as a reimbursement for meals only and the actual deduction is 80% of that, which is $47.20 per day. for all days away from home.

If your doing your own taxes, make sure you you check the box on line 24 on your SCH C entrance page, that states SUBJECT TO DOT REGULATIONS in order to receive the deduction.

Hotels/Motels are a separate entry under Travel and you receive the full deduction and are considered also in the per Deim cause your still away from home

The PerDeim works this way as far as Partial Days:

You leave your home at 1 PM on Monday, which is 1/2 day, and return on Friday at 5:30 PM which is considerd 3/4 of day, so for that week you would figure 4 1/4 days. Tues, Wed, and Thurs. wuld be 1-24 hourperiod day each

If you need any information you can download the followng from my website www.frankstaxbusiness.com and click on the
Document and Forms tab, Truckers Information.

Pre Deim and Mileage log
Laundry & Shower record
Montly Per Deim Days SpreadSheet
FTBS Monthly Expense Sheet
Complete Truckers Deduction Listing

ANOTHER IMPORTANT POINT OF INFORMATION

1. If you do not have health insurane, you must check the box as so

2. If you have health insurance you must wait until you receive a 1095-A in order for your return to be processed,

Please do not hestate to contact us if you have any questions, we will be happy to assst you.

Franklln Katz, ATP,PA, PB.
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

 

[xmudman]

I vote for this thread to be stickied

 

[Fkatz]

hi xmudman,

I was in the midde of answerng your questions, i was with a cleint in reference to the Health care,
i just finished and posted it


Frank

 

[Voynik]

If your doing your own taxes, make sure you you check the box on line 24 on your SCH C entrance page, that states SUBJECT TO DOT REGULATIONS in order to receive the deduction.

Is there a special Schedule C form with this check box? The one I have doesn't have it (downloaded from IRS site).

Also, do the sheets/logs for per diem, standard mileage (van driver O/O), showers/laundry need to be included with the tax return and if so what year were they first required?

Thanks in advance,
Michael

 

[Fkatz]

Morning Michael,

No there is no Speclal Sch C, but there should be a small box that says Special Tax Treatment somewhere in your software I have no idea what software your using,
If your using the over the Counter software, Turbo Tax, TaxCut, TaxAct, I have no idea where it is,

Make a phone Call to support for those and see where it is.

As far as the paperwork, NO it does not have to be mailed with he return, but you must keep any records for at least 3 years and up to 7 years for items like your truck, an any items that you depreciatied.

Records must be kept fora miminun of 3 years from the date it was filed, and up to 15 years depending on your profession, justi in case of an audit,

Your tax return itself Normally from the 1st year you actually filed and up and including your Currentyear. IN OTHER WORDS FOREVER

Franklln Katz, ATP,PA, PB
Frank’s Tax and Business Service
315 E. King St.
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Web Site: Http://www.frankstaxbusiness.com

Providing Professional Accounting, Bookkeeping,Payroll and Income Tax Preparation Services

*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.

Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.

*The IRS doesnot endorse any particular individual tax preparer. For more information on taxreturn preparers go to IRS.gov

 

[RLENT]

You must keep each load separately showing the following:
Deadhead to either staging area, or load pick-up, Delivery, and to a staging area (truckstop) were you are going to stay overnight. or go home. the load is considered complete here.

If you leave the staging area, or overnight place for any reason, except a repair shop, you cannot use the mileage at all.

Since the above seems to fly directly in the face of the IRS regulations that I am aware of, please name the relevant IRS document (by Form or Schedule Number) and cite the page number of the document where these regulations (quoted above) are spelled out in plain English.

As a cargo van operator, I keep my mileage/load records in the form of a spreadsheet - showing the starting and ending mileage for the year, with a separate entry (beginning and ending mileage and time) for each event driven for a business purpose, where the exact nature of the event is spelled out.

And for what it's worth, I have been audited (for multiple years) and there has never been any issue with either my records of miles driven for a business purpose ... nor any questioning or dispute on the business nature of what I have reported.

I am pretty aggressive about what I claim:

If I drive to Staples for office supplies which will be used for my business, it gets claimed.

If I drive to the local T/A to get my annual D.O.T inspection done, it gets claimed.

Etc.

 

[Fkatz]

Hi Relent,
I have a question for you, may i ask what business code your using on your Sch "C"?,

Are you classifing yourself as over-the-Road Truck Driver, 484120, then you are Considered "FOR HIRE", AND REALLY AND legally the standard mileage cannot be used accordingto publication 463. and you will be looking for the mieage audit and it will be disallowed. that is depending n the auditor.

I know that themieage deduction is an overstated amount , that i why accuate records are required

frank

 

[Voynik]

Morning Michael,

No there is no Speclal Sch C, but there should be a small box that says Special Tax Treatment somewhere in your software I have no idea what software your using,
If your using the over the Counter software, Turbo Tax, TaxCut, TaxAct, I have no idea where it is,

Make a phone Call to support for those and see where it is.

As far as the paperwork, NO it does not have to be mailed with he return, but you must keep any records for at least 3 years and up to 7 years for items like your truck, an any items that you depreciatied.

Records must be kept fora miminun of 3 years from the date it was filed, and up to 15 years depending on your profession, justi in case of an audit,

Your tax return itself Normally from the 1st year you actually filed and up and including your Currentyear. IN OTHER WORDS FOREVER

Frank, thank you for the reply.

I am not using any software but rather old school manual using fill-able PDF forms (1040, Schedule C and 1040SSE). I included an additional self made sheet detailing the breakdown of Schedule C deductions.

I am also interested in what the proper code for use on the Schedule C for business type is. I used 484200 - Specialized Freight Trucking but am not sure that would be correct for a cargo van and not cause an issue due to the use of the Standard Mileage Rate and Per Diem deductions.

Also, how is one to hand escrow situations? Panther requires an escrow which is deducted from the settlements until the total escrow required is satisfied but the amount deducted is included in that year's 1099 while it is also included in the 1099 of the year you leave Panther. It would seem to me that you should be able to deduct the escrow amount from that first 1099 as a Part V deduction (as a cost of doing business) and then have to claim it as income on the second.

Regards,
Michael

 

[letsdrive]

So if im understanding this if you claim mileage while driving for a owner because you pay for fuel you cant claim fuel expense or am i mistaken

 

[Voynik]

This one I am fairly certain of. If you drive for an owner and you pay for the fuel, you can only take a deduction on the fuel expense and tolls (if you paid for the tolls). You can not take mileage because the owner bought the truck and is paying for the maintenance, truck insurance, etc. In other words, unless you are leasing the truck and paying for everything, you can never take mileage as a driver. This is assuming you are driving a 10,000lb GVW or less vehicle. If over, no one can take the Standard Mileage Deduction.

On the flip side, the owner can not take mileage if you are paying for the fuel unless said owner is reimbursing you for the fuel and not writing it off in your 1099.

The Standard Mileage Deduction is for truck purchase, maintenance, insurance, AND fuel.

 

[letsdrive]

This one I am fairly certain of. If you drive for an owner and you pay for the fuel, you can only take a deduction on the fuel expense and tolls (if you paid for the tolls). You can not take mileage because the owner bought the truck and is paying for the maintenance, truck insurance, etc. In other words, unless you are leasing the truck and paying for everything, you can never take mileage as a driver. This is assuming you are driving a 10,000lb GVW or less vehicle. If over, no one can take the Standard Mileage Deduction.

On the flip side, the owner can not take mileage if you are paying for the fuel unless said owner is reimbursing you for the fuel and not writing it off in your 1099.

The Standard Mileage Deduction is for truck purchase, maintenance, insurance, AND fuel.

Thanks you

 

[Voynik]

You're welcome and I am sure Frank will correct me if I am wrong.

As a note, I had issues in the past with a fleet owner who wrote off reimbursements on my 1099 for maintenance I had performed/payed for while also claiming those costs in Line 9: Truck Expenses of his Schedule C. I ended up having to eat the income/self-employment taxes of those as I had mailed him the receipts and could not prove otherwise. After that, I would only have any truck maintenance performed if he payed for it via his own credit card which was a royal pain to get him on the phone and have him pay the shop to release the van. I would get approval for the maintenance but then he wouldn't answer the phone when it came time to pay the bill and/or would take his sweet time. I tried to reason with him that the longer it took to get the van back and available meant potential lost revenue but to no avail. One time, I had to sit for two days waiting for him to pay. I arranged with the shop to allow me to camp out in the van in their parking lot after giving them my driver's license and passport as security. Some might say it was lazy accounting (him just taking the total I had been paid without removing the reimbursements) but he subsequently refused to pay me my percentage of the final settlement when I quit (giving him a months notice) so I lost out on over $800. I later found out, from the van Driver Council rep, that he did this to every single driver that ever worked with him and was banned from Panther's driver referral program.

 

[letsdrive]

You're welcome and I am sure Frank will correct me if I am wrong.

As a note, I had issues in the past with a fleet owner who wrote off reimbursements on my 1099 for maintenance I had performed/payed for while also claiming those costs in Line 9: Truck Expenses of his Schedule C. I ended up having to eat the income/self-employment taxes of those as I had mailed him the receipts and could not prove otherwise. After that, I would only have any truck maintenance performed if he payed for it via his own credit card which was a royal pain to get him on the phone and have him pay the shop to release the van. I would get approval for the maintenance but then he wouldn't answer the phone when it came time to pay the bill and/or would take his sweet time. I tried to reason with him that the longer it took to get the van back and available meant potential lost revenue but to no avail. One time, I had to sit for two days waiting for him to pay. I arranged with the shop to allow me to camp out in the van in their parking lot after giving them my driver's license and passport as security. Some might say it was lazy accounting (him just taking the total I had been paid without removing the reimbursements) but he subsequently refused to pay me my percentage of the final settlement when I quit (giving him a months notice) so I lost out on over $800. I later found out, from the van Driver Council rep, that he did this to every single driver that ever worked with him and was banned from Panther's driver referral program.

Had some similar issues last year getting paid for tires etc. But i did use my bank card so atleast have that record

 

[Voynik]

Here is a question for someone who is an O/O of a cargo van. Does one need to fill out a form 4562 if you take the Standard Mileage Deduction?

From what I understand, as a self-employed driver for a O/O, you would put fuel in Part V: Other expenses and you would not fill out Part IV: Information on your vehicle, as it is not your vehicle.

Occupational Accident Insurance would be on Line 15: Insurance (other than health).