Paying quarterly taxes ?
- Thread starter mouse549
- Start date
HI MOUSE,
SORRY FOR THE DELAY IN GETTING BACK TO YOU,
THE QUESTION THAT YOU ASKED IS?
<How does an O/O(cargo van) figure the taxes due during the year? Is there software for this, on when &/or how much to pay?
I plan on starting in Oct.'04.>
ANSWER,
YOU REALLY DO NOT NEED TO UNTIL YOUR FIRST (1ST FULLYEAR)
YOU GET A PER DIEM DEDUCTION FOR EACH AND EVERY DAY THAT YOU ARE AWAY FROM YOUR NORMAL PLACE OF ABODE. THIS IS BASED ON 1/4 DAYS.
THE DEDUCTION IS 70% OF $41.00 PER DAY IN THE U.S. AND $46.00 FOR TRAVEL IN CANADA.
How does an O/O(cargo van) figure the taxes due during the year? Is there software for this, on when &/or how much to pay?
I plan on starting in Oct.'04.
BUT IT WOULD ALSO DEPEND WHERE YOU ARE LOCATED. SOME AREA'S OF THE IRS LOCATIONS ARE NOT ALLOWING THE STANDARD MILEAGE DEDUCTION DUE TO THE FACT THAT THEY ARE STATING THAT YOUR BASIS IS "FOR HIRE" EVEN THOUGH YOU ARE USED AND SIGNED UP AS AN EXCLUSIVE USE VEHICLE FOR THAT COMPANY.,
BUT A COURIER LIKE FEDEX HOME, AND CORPORATE EXPRESS, DHL, AND ALL THE OTHER TYPES OF LEASED O/O'S THEY CAN TAKE THE MILEAGE LEGALLY. WITH NO QUESTION ASKED.
SINCE WE ARE FIGURED "FOR HIRE" WE ARE NOT SUPPOSE TO.
BUT FIGURE MILEAGE FOR YOU DEDUCTION, TAKE BETWEEN 10-15% FOR PERSONAL USE.
THESE ARE YOUR 2 LARGEST DEDUCTIONS SO THEY SHOULD SHOW A LOSS FOR THE YEAR AND NO TAXES WILL BE OWED.
ANY OTHER QUESTION, PLEASE DO NOT HESITATE TO ASK,
FRANK
SORRY FOR THE DELAY IN GETTING BACK TO YOU,
THE QUESTION THAT YOU ASKED IS?
<How does an O/O(cargo van) figure the taxes due during the year? Is there software for this, on when &/or how much to pay?
I plan on starting in Oct.'04.>
ANSWER,
YOU REALLY DO NOT NEED TO UNTIL YOUR FIRST (1ST FULLYEAR)
YOU GET A PER DIEM DEDUCTION FOR EACH AND EVERY DAY THAT YOU ARE AWAY FROM YOUR NORMAL PLACE OF ABODE. THIS IS BASED ON 1/4 DAYS.
THE DEDUCTION IS 70% OF $41.00 PER DAY IN THE U.S. AND $46.00 FOR TRAVEL IN CANADA.
How does an O/O(cargo van) figure the taxes due during the year? Is there software for this, on when &/or how much to pay?
I plan on starting in Oct.'04.
BUT IT WOULD ALSO DEPEND WHERE YOU ARE LOCATED. SOME AREA'S OF THE IRS LOCATIONS ARE NOT ALLOWING THE STANDARD MILEAGE DEDUCTION DUE TO THE FACT THAT THEY ARE STATING THAT YOUR BASIS IS "FOR HIRE" EVEN THOUGH YOU ARE USED AND SIGNED UP AS AN EXCLUSIVE USE VEHICLE FOR THAT COMPANY.,
BUT A COURIER LIKE FEDEX HOME, AND CORPORATE EXPRESS, DHL, AND ALL THE OTHER TYPES OF LEASED O/O'S THEY CAN TAKE THE MILEAGE LEGALLY. WITH NO QUESTION ASKED.
SINCE WE ARE FIGURED "FOR HIRE" WE ARE NOT SUPPOSE TO.
BUT FIGURE MILEAGE FOR YOU DEDUCTION, TAKE BETWEEN 10-15% FOR PERSONAL USE.
THESE ARE YOUR 2 LARGEST DEDUCTIONS SO THEY SHOULD SHOW A LOSS FOR THE YEAR AND NO TAXES WILL BE OWED.
ANY OTHER QUESTION, PLEASE DO NOT HESITATE TO ASK,
FRANK
Take a look at www.jklasser.com for good reference material. My mom did all the taxes etc. for my dad's medical practice and had the Lasser books on a subscription basis. Every year she got the new book as soon as it was available. She got audited once in about 1970 and had such perfect records she was never audited again. The average for doctors is one audit every 7 years so she was bypassed about 4 times. She's been gone almost 3 yrs now and my dad retired last year after 50 yrs practicing medicine. No guarantees the Lasser books will let you get out of at least 4 audits but they do give good info. Good luck.
Leo
truck 767
Support the entire Constitution, not just the parts you like.
Leo
truck 767
Support the entire Constitution, not just the parts you like.
So since I started driving, Oct.'04, do I have to pay estimated taxes in Jan.'05? (I was a company driver, from Jan.- Sept.'04.)
I live in Chicago.
Also, I'm not understanding the vehicle depreciation thing. I purchased a Van this year and put over half down in cash. How do I list this in Apr.'05?
Thanx
Mouse :~}
I live in Chicago.
Also, I'm not understanding the vehicle depreciation thing. I purchased a Van this year and put over half down in cash. How do I list this in Apr.'05?
Thanx
Mouse :~}
Hi Mouse,
Forum name: Tax Topics For Expediters.
Subject: RE%3A Paying quarterly taxes %3F
Posted by: mouse549
Message :
So since I started driving, Oct.'04, do I have to pay estimated taxes in Jan.'05? (I was a company driver, from Jan.- Sept.'04.)
I live in Chicago.
MOUSE 549 IN ANSWER TO YOUR QUESTIONS_-
SINCE YOU WERE A COMPANY DRIVER FOR 3/4 OF THE YEAR IN 2004 NO ESTIMATED TAXES ARE DUE OR WILL BE DUE FOR THIS LAST QUARTER OF 2004
WE WILL DECIDE DEPENDING ON WHAT HAPPENS DURING THE 1ST QUARTER OF 2005 OF WEATHER OR NOT YOU WILL HAVE TO PAY QUARTERLY TAXES AT ALL.
Also, I'm not understanding the vehicle depreciation thing. I purchased a Van this year and put over half down in cash. How do I list this in Apr.'05?
Thanx
Mouse :~}
YOU HAVE 2 CHOICES OF THE WAY YOU WOULD WANT TO DEPRECIATE YOUR VEHICLE AND THAT IS THE FOLLOWING:
1 ST CHOICE IS USING THE STANDARD MILEAGE DEDUCTION OF ALL MILES DRIVEN. THIS WILL BE NORMALLY MORE THAN USING THE DEPRECIATION (2ND) EACH YEAR. YOU CANNOT USE BOTH DEDUCTIONS AT THE SAME TIME.
BUT IF YOU USE MILEAGE THE FIRST YEAR AND YOU DECIDE TO CHANGE TO ACTUAL EXPENSE YOU CANNOT GO BACK TO USING MILEAGE THE FOLLOWING YEAR
YOU MUST STAY WITH THE ACTUAL EXPENSE FOR THE REMAINDER OF THE LIFE OF THE VEHICLE. NORMALLY 5 YEARS MILEAGE, AND 5YEARS DEPRECIATION
FOR A CARGO VAN.
iF YOU USE THE DEPRECIATION METHOD IN THE FIRST YEAR YOU HAVE TO STAY WITH THAT FOR THE LIFE OF THE VEHICLE. YOU CANNOT SWITCH TO MILEAGE ONE YOU DECIDE ON ACTUAL.
iF YOU WOULD WANT A COPY OF MY DEDUCTION LISTING OR ANY TRUCKING FORMS PLEASE E-MAIL ME DIRECT AT [[email protected]]
Frank
Forum name: Tax Topics For Expediters.
Subject: RE%3A Paying quarterly taxes %3F
Posted by: mouse549
Message :
So since I started driving, Oct.'04, do I have to pay estimated taxes in Jan.'05? (I was a company driver, from Jan.- Sept.'04.)
I live in Chicago.
MOUSE 549 IN ANSWER TO YOUR QUESTIONS_-
SINCE YOU WERE A COMPANY DRIVER FOR 3/4 OF THE YEAR IN 2004 NO ESTIMATED TAXES ARE DUE OR WILL BE DUE FOR THIS LAST QUARTER OF 2004
WE WILL DECIDE DEPENDING ON WHAT HAPPENS DURING THE 1ST QUARTER OF 2005 OF WEATHER OR NOT YOU WILL HAVE TO PAY QUARTERLY TAXES AT ALL.
Also, I'm not understanding the vehicle depreciation thing. I purchased a Van this year and put over half down in cash. How do I list this in Apr.'05?
Thanx
Mouse :~}
YOU HAVE 2 CHOICES OF THE WAY YOU WOULD WANT TO DEPRECIATE YOUR VEHICLE AND THAT IS THE FOLLOWING:
1 ST CHOICE IS USING THE STANDARD MILEAGE DEDUCTION OF ALL MILES DRIVEN. THIS WILL BE NORMALLY MORE THAN USING THE DEPRECIATION (2ND) EACH YEAR. YOU CANNOT USE BOTH DEDUCTIONS AT THE SAME TIME.
BUT IF YOU USE MILEAGE THE FIRST YEAR AND YOU DECIDE TO CHANGE TO ACTUAL EXPENSE YOU CANNOT GO BACK TO USING MILEAGE THE FOLLOWING YEAR
YOU MUST STAY WITH THE ACTUAL EXPENSE FOR THE REMAINDER OF THE LIFE OF THE VEHICLE. NORMALLY 5 YEARS MILEAGE, AND 5YEARS DEPRECIATION
FOR A CARGO VAN.
iF YOU USE THE DEPRECIATION METHOD IN THE FIRST YEAR YOU HAVE TO STAY WITH THAT FOR THE LIFE OF THE VEHICLE. YOU CANNOT SWITCH TO MILEAGE ONE YOU DECIDE ON ACTUAL.
iF YOU WOULD WANT A COPY OF MY DEDUCTION LISTING OR ANY TRUCKING FORMS PLEASE E-MAIL ME DIRECT AT [[email protected]]
Frank