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Tax expenses: actual or standard.

Discussion in 'Business Tips and Taxes' started by VSprinter, Feb 21, 2017.

  1. VSprinter

    VSprinter Veteran Expediter Owner/Operator

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    Can you switch in next or third year if first was actual?
     
  2. VSprinter

    VSprinter Veteran Expediter Owner/Operator

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    Darn it. I used accelerated depreciation on the van. Can't change from that. Back to using all the receipts.
     
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    • OntarioVanMan
      Thinking

      OntarioVanMan Retired Expediter Owner/Operator

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      sux to be you....seems you didn't get any advice....?
       
    • fastman_1
      Arthritic

      fastman_1 Veteran Expediter Owner/Operator

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      A good tax man is worth his weight in gold!


      Lost in Space.
       
    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      no kidding...its like .50 times mileage.....I am done! LOL or pretty close..
      In Canada they didn't have the mileage....had to add up EVERY receipt! Time consuming..
       
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    • Worn Out Manager
      Amused

      Worn Out Manager Veteran Expediter Owner/Operator US Air Force

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      Same here, but I had a second accountant review and it came out better itemized for tax year 2015. Obviously we will be staying itemized but my maintenance, fuel and other truck costs still come out higher than the mileage allowance. I don't have to worry about income, just keep counting the expenses

      Sent from my hand-held Etch-A- Sketch
       
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    • Hummer53

      Hummer53 Expert Expediter Driver

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      Sounds like a bunch of you are barely making any money over and above your expenses.
       
    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      Making money.. but not on paper.... when you are getting say $50,000 mileage deduction right off the start ... then add in the per diem then subtract tolls and motels... you come down to almost $0.00 in gross adjusted income...
       
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    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      I would lose money on doing actual expenses... why anyone would ever chose to add it all up is beyond me... mileage is by far the quickest way to $0.00 then actual
       
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    • Worn Out Manager
      Amused

      Worn Out Manager Veteran Expediter Owner/Operator US Air Force

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      The answer lies in the purchase of a new van and the associated expense of setting it up first year, which leads to the accelerated deprecation model.

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    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      I chose to stretch out depreciation over five years
       
    • Worn Out Manager
      Amused

      Worn Out Manager Veteran Expediter Owner/Operator US Air Force

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      I have no confidence that my body will last 5 years, I have not treated it very well over the years.

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    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      Sux to be you I suppose:p
       
    • Worn Out Manager
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      Worn Out Manager Veteran Expediter Owner/Operator US Air Force

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      Hey, I was talking about the truck body! You're a meanie

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    • OntarioVanMan
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      OntarioVanMan Retired Expediter Owner/Operator

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      Opps...lol
       
    • Treadmill
      Caffeine Fix

      Treadmill Veteran Expediter Owner/Operator

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      Nope. Once you commit with that vehicle, you cannot change to the other to get a better tax benefit.
       
    • fastman_1
      Arthritic

      fastman_1 Veteran Expediter Owner/Operator

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      Correct, that's why a good tax guy is worth their wait in gold! The first year they should run it both ways, and go with what's best in the long run


      Lost in Space.
       
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    • schwanman

      schwanman Expert Expediter

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      I was told by CPA you can change actual to standard but not vice a versa unless you purchase new vehicle? True? Also I run a van with low expenses and one meal a day.
      Mean and lean for profit so at tax time no where close on deductions to cover? A motel once in awhile.
      Any advise?
       
    • schwanman

      schwanman Expert Expediter

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      Also since you may not have receipts everyday. What's the best way to verify days on the road in a van?
       
    • fastman_1
      Arthritic

      fastman_1 Veteran Expediter Owner/Operator

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      Spread Sheet on my lap top


      Sent from the deep end.
       
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