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New tax changes for 2014 that will effect your 2014 tax returns.

Fkatz

Veteran Expediter
Charter Member
HI All,

Here are some tax increases than will in effect your tax returns for this coming tax filing season starting in January 2015 for 2014 taxes.


Subject: DO YOU KNOW WHAT HAPPENED TO YOU 7-1-14
Here is what happened on July 1st, 2014:


  • Top Income Tax bracket went from 35% to 39.6% Yes… additional medicare tax (.9%) and Net Investment income tax (3.8%) if applicable
  • Top Income Payroll Tax went from 37.4% to 52.2% not sure where this comes from…. FICA is still 7.65 and medicare tax is 2.8
  • Capital Gains Tax went from 15% to 28% highest rate on collectibles is 28%. Highest rate for individuals is generally 20%
  • Dividend Tax went from 15% to 39.6% Correct
  • Estate Tax went from 0% to 55% Correct
  • These taxes were all passed under the Affordable Care Act, otherwise known as ObamaCare.
  • All these taxes were passed with only Democrat votes.
  • Not one Republican voted for these taxes!


Remember this on November 4th!!



Frank
 

Fkatz

Veteran Expediter
Charter Member
Sorry but no, there has not been a Per Diem Change in 3 years
Its still $59.00 per day subject to 80%


Frank
 

Fkatz

Veteran Expediter
Charter Member
There should be a box that you have to mark on the Sch C. fine where it is subject to
DOT Reg. or you will not get the correct deduction

The Per Diem is taken on line 24 Meals & entertainment
you enter the total and it calculates if your using tax software. but i cannot guarantee the out come by using Turbo tax, Tax Act, Tax Cut

There are other rules that have to be followed for deductions.

Under Repairs it is best to separate your expenses,
Regular repairs
Maintenace ( Oil Changes)
Parts
Tires
Additional Engine oil only. Additives are not allowed in this group they are considered truck expenses.

Taxes Specify
IFTA
NY Mileage Tax
IRP Registration
Vehicle Property Tax (truck)

If you complete your own Income Taxes we will be glad to check out your returns before you recieve and audit letter, The IRS is Disallowing Certain items

Standard Mileage Rate for Straight trucks and Tractor Trailers since they are over the 10,000 lbs GVW

Repairs over 10% of your income (Prove IT) Major Repairs are not allowed to be used within this section
Transmission/ Engine Repair must be Amortized over 5 years at Straight Line Depreciation

You have to prove the actual mileage of each load that you take, NO MORE BEGINNING/ ENDING mileage proof for the year.

Any questions please do not hesitate to ask

Franklin Katz, ATP, PA, PB
Frank’s Tax & Business Service
315 E. King St
Kings Mountain, NC 28086
(704) 739-4039
Fax: (704) 739-3934
E-mail: Frankstaxservice@bellsouth.net
Website: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services
 

jjtdrv4u

Expert Expediter
this is from how Turbotax does it:

The DOT per diem rate applies to each full 24-hour period you're away from home; for partial days where you're either leaving for work or coming home, use 75% of that rate (this would be $44.25 for inside the continental U.S., $48.75 outside).

The IRS allows you to deduct 80% of your unreimbursed DOT per diem, but you only need to figure your unreimbursed per diem for the year – TurboTax will calculate the rest. Follow the instructions below.

Instructions

To figure your unreimbursed DOT per diem, simply subtract your employer's reimbursement (if any) from the DOT rates shown above and multiply by the number of full days you were on the road. Then, add in any partial days you may have had.

For example, if your employer reimbursed you $19 per diem, and you were on the road in the continental U.S. for 100 full days last year, you would enter $4,000 ($59 minus $19 = $40, multiplied by 100 = $4,000). And if you had 10 more partial days that your employer didn't reimburse you for, you'd tack on another $442.50 ($44.25 multiplied by 10) for a grand total of $4,442.50.

Here's how to enter your DOT per diem in TurboTax:

In TurboTax, search for this exact phrase: job expenses, employee (if necessary, copy/paste it from here).
Then, if using TurboTax Online, click the Jump to job expenses, employee link in the search results.
On the Tell Us About the Occupation You Have Expenses For screen, enter your occupation (Truck Driver, Airline Pilot, etc.) and click Continue.
If you land on the Job-Related Expenses Summary screen instead, click Edit and then click Continue.
On the next screen, select the checkbox You are in the transportation industry and click Continue.
On the next few screens, you'll be asked about home office expenses, mileage, and other topics. Answer those questions as appropriate.
Eventually you'll come to the Any Other Expenses? screen. On this screen, enter your unreimbursed DOT per diem in the field Meal expenses covered by Department of Transportation rules.
 

Fkatz

Veteran Expediter
Charter Member
Hi,
this is from how Turbotax does it:

The DOT per diem rate applies to each full 24-hour period you're away from home; for partial days where you're either leaving for work or coming home, use 75% of that rate (this would be $44.25 for inside the continental U.S., $48.75 outside).

The IRS allows you to deduct 80% of your unreimbursed DOT per diem, but you only need to figure your unreimbursed per diem for the year – TurboTax will calculate the rest. Follow the instructions below.

Instructions

To figure your unreimbursed DOT per diem, simply subtract your employer's reimbursement (if any) from the DOT rates shown above and multiply by the number of full days you were on the road. Then, add in any partial days you may have had.

For example, if your employer reimbursed you $19 per diem, and you were on the road in the continental U.S. for 100 full days last year, you would enter $4,000 ($59 minus $19 = $40, multiplied by 100 = $4,000). And if you had 10 more partial days that your employer didn't reimburse you for, you'd tack on another $442.50 ($44.25 multiplied by 10) for a grand total of $4,442.50.

Here's how to enter your DOT per diem in TurboTax:

In TurboTax, search for this exact phrase: job expenses, employee (if necessary, copy/paste it from here).
Then, if using TurboTax Online, click the Jump to job expenses, employee link in the search results.
On the Tell Us About the Occupation You Have Expenses For screen, enter your occupation (Truck Driver, Airline Pilot, etc.) and click Continue.
If you land on the Job-Related Expenses Summary screen instead, click Edit and then click Continue.
On the next screen, select the checkbox You are in the transportation industry and click Continue.
On the next few screens, you'll be asked about home office expenses, mileage, and other topics. Answer those questions as appropriate.
Eventually you'll come to the Any Other Expenses? screen. On this screen, enter your unreimbursed DOT per diem in the field Meal expenses covered by Department of Transportation rules.



Your figuring the Per Dem incorrectly.

it is done this way,

If you are a Company Driver as follows and on form 2106
(Employee Business Expense
)

You take the total full days on the road according to the example you gave
and figure it this way

100 days at $59.00 per day = $5900.00
Partial Days 10X $59.00 590.00
Total Per Diem $ 6490.00

plus your other expenses n line 3, as a company Driver not reimbursed.
The Per Diem amount goes on line 5- Subject to OT Regulations

You put your Reimbursement (IF ANY) on line 7 of the same form

AS I stated this is for Company Drivers. if you do not itemize, and you are under the standard Deduction it will not give you the deduction

You get 80% of the 6490. above which is $ 5,192, This will carryover to Sch. A line 21, plus the items on line 3

If you are a independent Contractor, you file a Sch. C Profit/Loss from business

Also, if you are a Husband and Wife team, you must make out 2-Sch.C's one for each of you in order to show Self Employment Tax ( If Any on he Profit) So that it can be credited to your Social Security Benefits

The Per diem amount goes on line 24 (Meals and Entertainment)

On the Sch. C Form there should be a small box Saying
SPECIAL TREATMENT CODE
, You pick 1 of 5 code depending upon the software you are using. Normally you enter "D" for Subject to DOT Regulations and then the software will calculate correctly.

Any Questions please do not hesitate to ask, either by phone, or e-mail shown below.

FRANK' TAX & BUSINESS SERVIC
Franklin Katz, ATP, PA PB
315 E. King St.
Kings Mountain, NC28086
Phone 1-704-739-4039
Fax: 1-704-739-3934
E-Mail: Frankstaxservice@bellsouth.net)
Website: Kings Mountain, NC Accounting Firm | Home Page | Frank's Tax & Business Services


 
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beachbum

Veteran Expediter
Owner/Operator
Frank being a van driver were not subject to DOT regs or I'm I missing something
 

Fkatz

Veteran Expediter
Charter Member
Frank being a van driver were not subject to DOT regs or I'm I missing something
Basically, if you have a company Name, A satellite, and the DOT # on your Van you are subject to DOT Regs., even though you do not log. The do not enforce it, but you are.

If they really want they can enforce he DOT Regs. theY feel that you did not abide by rules of the road.

I you travel In KY, you must go through the scales just for them to see KY Permit #. They will not chase you, but they might for avoiding the scales.


Frank
 
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