HI ALL,
I JUST GOT OFF THE PHONE WITH THE INTERNAL REVENUE SERVICE THIS MORNING AND WHAT I ASKED ABOUT WAS THE DEADHEAD MILES THAT WE ALL ARE NOT PAID FOR.
NOT PAID DEADHEAD IS DEFINITELY A DEDUCTION THAT CAN BE TAKEN AS COST OF DOING BUSINESS. EVEN IF YOU USE THE ACTUAL COST METHOD.
IF YOU USE THE ACTUAL COST METHOD IN CALULATING EXPENSES, ON SCHEDULE C, PART V, VEHICLE EXPENSE, OR IF YOU HAVE AN AUTO WORKSHEET IN THE TAX PROGRAM. DATE VEHICLE WAS PLACED IN SERVICE, TAKE THE TOTAL MILES YOU DROVE FOR THE YEAR AS OTHER MILES, AND THE DEADHEAD MILES AS YOUR BUSINESS MILES. I WOULD USE APPROXIMATELY 10% OF YOUR TOTAL MILEAGE. IF IT IS MORE TAKE IT ALL. YOU MUST KEEP ACCURATE RECORDS AS TO DEADHEAD NOT PAID. THAT INCLUDES LOADED MILES ALSO, THAT YOU ARE NOT PAID FOR, JUST INCASE OF AUDIT.
IF YOU KEEP A SPREADSHEET ON YOUR LOADS, AND USE A MAP PROGRAM. USE THE DIFFERENCE IN MILES PAID AND NOT PAID.(IN OTHER WORDS KEEP TRACK OF ALL MILES BETWEEN LOADS PERIOD.)TAKE MILEAGE READINGS FOR EACH. dEADHEAD, LOADED, AND ENTER THE DIFFERNCE IN A SEPARATE COLUMN.
WHAT I USE IN FORMAT IS AS FOLLOWS. EXAMPLE:FOR HEADINGS
DATE,PRO#/BL#,D/H PAID,D/H NOT PAID,PICK-UP DITY,DELIVERY CITY,LOADED MILES PAID, NOT PAID. ETC THE MILES THAT ARE NOT PAID WILL BE FIGURED AT THE STANDARD MILEAGE ALLOWANCE, $.34 1/2, NOT AT THE RATE THE LOAD PAID.
I AM ALSO WAITING FOR AN ANSWER FROM THE IRS IN REFERENCE TO WEATHER THE STANDARD MILEAGE DEDUCTION CAN BE USED ON STRAIGHT TRUCKS WITH A GVW OF 33,000 LBS. ACCORDING TO THE IRS WHEN I SPOKE TO THEM ANY TRUCK OVER 55,000 LBS HAS TO TAKE THE ACTUAL EXPENSES. MAKE THE THERE ARE REALLY IS NO PUBLICATIONS THAT PERTAIN TO TRUCKERS. THIS MIGHT TAKE A COUPLE OF WEEKS TO FIND OUT EXACTLY, DUE TO THIS TECHINCALITY, WHICH OF COURSE WILL TAKE US BEYOND THE FILING TAX DEADLINE OF APRIL 15TH, FOR THOUGHS OF YOU WHO ARE WILLING TO WAIT FOR THE CORRECT ANSWER ON THIS, CAN FILE FORM 4868, AN EXTENSION FOR FILING YOUR 2001 TAXES. IF YOU DO THIS, AND YOU THINK YOU OWE ANY TAX, TRY AND SEND APPROXIMATELY THE MINIMUN OF 75% OF THE TAX YOU THINK YOU OWE.
THE WAY THAT THIS READS IN THE PUBLICATION ON BUSINESS EXPENSES IS FOR CARS AND STANDARD PICK-UP TRUCKS USED IN BUSINESS STATES, THAT ANY VEHICLE WITH A EMPTY WEIGHT OF 6000 LBS, GNW.(GROSS NET WEIGHT)MAY USE THE STANDARD MILEAGE RATE. ALSO IF YOU OWN MORE THAN ONE VEHICLE FOR BUSINESS YOU CANNOT USE THE MILEAGE RATE AT ALL, EVEN IF YOU OWN 2 CARGO VANS. YOU MUST USE THE ACTUAL COST OF EXPENSES FOR EACH VEHICLE. BUT YOU CAN STILL TAKE THE STANDARD MILEAGE RATE OF
34 1/2 CENTS PER MILES FOR THE DEADHEAD YOU WERE NOT PAID FOR.
IF ANY OF YOU HAVE ANY QUESTION, PLEASE E-MAIL ME AT [[email protected]] or call me at (704) 739-4039
Thanks,
Franklin Katz
Frank's Tax & Business Service
308 E. King St.
Kings Mountain, NC 28086
I JUST GOT OFF THE PHONE WITH THE INTERNAL REVENUE SERVICE THIS MORNING AND WHAT I ASKED ABOUT WAS THE DEADHEAD MILES THAT WE ALL ARE NOT PAID FOR.
NOT PAID DEADHEAD IS DEFINITELY A DEDUCTION THAT CAN BE TAKEN AS COST OF DOING BUSINESS. EVEN IF YOU USE THE ACTUAL COST METHOD.
IF YOU USE THE ACTUAL COST METHOD IN CALULATING EXPENSES, ON SCHEDULE C, PART V, VEHICLE EXPENSE, OR IF YOU HAVE AN AUTO WORKSHEET IN THE TAX PROGRAM. DATE VEHICLE WAS PLACED IN SERVICE, TAKE THE TOTAL MILES YOU DROVE FOR THE YEAR AS OTHER MILES, AND THE DEADHEAD MILES AS YOUR BUSINESS MILES. I WOULD USE APPROXIMATELY 10% OF YOUR TOTAL MILEAGE. IF IT IS MORE TAKE IT ALL. YOU MUST KEEP ACCURATE RECORDS AS TO DEADHEAD NOT PAID. THAT INCLUDES LOADED MILES ALSO, THAT YOU ARE NOT PAID FOR, JUST INCASE OF AUDIT.
IF YOU KEEP A SPREADSHEET ON YOUR LOADS, AND USE A MAP PROGRAM. USE THE DIFFERENCE IN MILES PAID AND NOT PAID.(IN OTHER WORDS KEEP TRACK OF ALL MILES BETWEEN LOADS PERIOD.)TAKE MILEAGE READINGS FOR EACH. dEADHEAD, LOADED, AND ENTER THE DIFFERNCE IN A SEPARATE COLUMN.
WHAT I USE IN FORMAT IS AS FOLLOWS. EXAMPLE:FOR HEADINGS
DATE,PRO#/BL#,D/H PAID,D/H NOT PAID,PICK-UP DITY,DELIVERY CITY,LOADED MILES PAID, NOT PAID. ETC THE MILES THAT ARE NOT PAID WILL BE FIGURED AT THE STANDARD MILEAGE ALLOWANCE, $.34 1/2, NOT AT THE RATE THE LOAD PAID.
I AM ALSO WAITING FOR AN ANSWER FROM THE IRS IN REFERENCE TO WEATHER THE STANDARD MILEAGE DEDUCTION CAN BE USED ON STRAIGHT TRUCKS WITH A GVW OF 33,000 LBS. ACCORDING TO THE IRS WHEN I SPOKE TO THEM ANY TRUCK OVER 55,000 LBS HAS TO TAKE THE ACTUAL EXPENSES. MAKE THE THERE ARE REALLY IS NO PUBLICATIONS THAT PERTAIN TO TRUCKERS. THIS MIGHT TAKE A COUPLE OF WEEKS TO FIND OUT EXACTLY, DUE TO THIS TECHINCALITY, WHICH OF COURSE WILL TAKE US BEYOND THE FILING TAX DEADLINE OF APRIL 15TH, FOR THOUGHS OF YOU WHO ARE WILLING TO WAIT FOR THE CORRECT ANSWER ON THIS, CAN FILE FORM 4868, AN EXTENSION FOR FILING YOUR 2001 TAXES. IF YOU DO THIS, AND YOU THINK YOU OWE ANY TAX, TRY AND SEND APPROXIMATELY THE MINIMUN OF 75% OF THE TAX YOU THINK YOU OWE.
THE WAY THAT THIS READS IN THE PUBLICATION ON BUSINESS EXPENSES IS FOR CARS AND STANDARD PICK-UP TRUCKS USED IN BUSINESS STATES, THAT ANY VEHICLE WITH A EMPTY WEIGHT OF 6000 LBS, GNW.(GROSS NET WEIGHT)MAY USE THE STANDARD MILEAGE RATE. ALSO IF YOU OWN MORE THAN ONE VEHICLE FOR BUSINESS YOU CANNOT USE THE MILEAGE RATE AT ALL, EVEN IF YOU OWN 2 CARGO VANS. YOU MUST USE THE ACTUAL COST OF EXPENSES FOR EACH VEHICLE. BUT YOU CAN STILL TAKE THE STANDARD MILEAGE RATE OF
34 1/2 CENTS PER MILES FOR THE DEADHEAD YOU WERE NOT PAID FOR.
IF ANY OF YOU HAVE ANY QUESTION, PLEASE E-MAIL ME AT [[email protected]] or call me at (704) 739-4039
Thanks,
Franklin Katz
Frank's Tax & Business Service
308 E. King St.
Kings Mountain, NC 28086