Quarterly Taxes Estimate?

JustUsTrucking · Dec 17, 2004

Hi: We are a husband/wife owner operator team with a straight truck leased back to Panther II (at least this is our status effective 1/15/05) I question as to how we are to determine the estimated quarterly taxes/estimated gross income. We have no past experience to draw from as this is a brand new venture for us. In my research, it seems like the helpful hint was to use last years tax information, however that won't work in our situation. I would hate to underestimate and pay a penalty, I would also had to pay the nice folks at the IRS too much. If I were to use the services of the gentlemen that moderates the tax topic here or PBS or another entity, would they be able to assist with that guess?
Thank you in advance for your insight.

Glen Rice · Dec 17, 2004

Well your in luck this year. If you paid no taxes last year, you owe nothing until April 15th 2005. The first year as self employed staus there is no penalty. If you paid, lets say 2000.00 last year, then you would need to send that in by Jan 15th 2005. I hope this helps. If you've had a great year as many have, I would recommend talking with your accountant, as they will probably have you send in an estimate of what your tax will be. Good luck. One more thing, if you can find an accountant who is familiar with trucking it will make his and your job easier. Items such as per diem allowances and depreciation schedules are a bit different in trucking than in other manufacturing businesses.

JustUsTrucking · Dec 17, 2004

We did not owe any taxes last year, we received a refund. I understand I won't owe the IRS until 4/15/2005, however I am still at a loss as to how to guess our income when we have no prior experience. I suppose I could just use the income earned in the 1st quarter as a basis and pay based on that. I have every intention of using an accountant to prepare our year end income tax return as I agree the deprection issues are over my head. I'm just confused about those darn "estimated" taxes due every quarter. Glad to hear there is no penalty for us 1st timers. Thanks for your help!

larrybadger · Dec 17, 2004

Call and make an appointment with your local IRS office up in Nashville. They have counselors at every office that could explain what options you have. Just a thought, albeit a simple one, but sometimes simple is better. <smile>

Larry Badger

>Hi: We are a husband/wife owner operator team with a
>straight truck leased back to Panther II (at least this is
>our status effective 1/15/05) I question as to how we are
>to determine the estimated quarterly taxes/estimated gross
>income. We have no past experience to draw from as this is
>a brand new venture for us. In my research, it seems like
>the helpful hint was to use last years tax information,
>however that won't work in our situation. I would hate to
>underestimate and pay a penalty, I would also had to pay the
>nice folks at the IRS too much. If I were to use the
>services of the gentlemen that moderates the tax topic here
>or PBS or another entity, would they be able to assist with
>that guess?
>Thank you in advance for your insight.

ATeam · Dec 17, 2004

>If I were to use the
>services of the gentlemen that moderates the tax topic here
>or PBS or another entity, would they be able to assist with
>that guess?
>Thank you in advance for your insight.

Here's a link to a truck-wise tax service that provides unlimited consulting in it's service package. If you were a client, you could direct your questions to them and receive the answers you seek.

http://www.attrucktax.com/

truckerd5 · Dec 25, 2004

I previously owned a landscape business, and when I started out my Accountant said the basic rule of thumb to avoid penalties is to take one fourth of the prior years tax liability as the figure to pay each quarter the first year of operation. (If well compensated in last profession this method is probably not good - never knowingly pay more tax than necessary) Remember this is just a rule of thumb. After your first year, you'll have actual operational figures to base the next years quarterly taxes on. Hope it helps

LDB · Dec 26, 2004

>Here's a link to a truck-wise tax service that provides
>unlimited consulting in it's service package. If you were a
>client, you could direct your questions to them and receive
>the answers you seek.
>
>http://www.attrucktax.com/

Either there's a problem with that website today or it doesn't work properly with IE6.0.2800 or it's poorly designed. I get nothing but the intro page unless I click the site map button. Then I get all the links to the entire site. Anyone looking at it that doesn't see a lot should click site map.

Leo
truck 767

Support the entire Constitution, not just the parts you like.