tax person
- Thread starter truckwife
- Start date
hello frank,hope your doing great.i've got a question,does a tax person or who ever is doing our taxes,have to send any paperwork in quarterly for us to the irs?like we have to send in our estimated taxes owed each quarter.thanks
Hi Truckwife,
You are the only one that is responsible to mail the estimated tax payments into the IRS, but make sure the check is Made out to the U.S. Treasury, In the memo box, put your Husbands SSN, Social Secuity Number, and 2nd quarter Estimates tax 2007
If your Tax person suggested to send them in he should of given you the form to fill out or it was computer generated when your 2006 Tax Return was processed and filed. if not you have to go online to
www.irs.gov, find forma and publication, click on 1040esv it can be filled out online and printed for your convenience and mail it in to the address for where your home state is.
Frank
Hi Truckwife,
You are the only one that is responsible to mail the estimated tax payments into the IRS, but make sure the check is Made out to the U.S. Treasury, In the memo box, put your Husbands SSN, Social Secuity Number, and 2nd quarter Estimates tax 2007
If your Tax person suggested to send them in he should of given you the form to fill out or it was computer generated when your 2006 Tax Return was processed and filed. if not you have to go online to
www.irs.gov, find forma and publication, click on 1040esv it can be filled out online and printed for your convenience and mail it in to the address for where your home state is.
Frank
In response to message #1
I have a friend who is a cargo van driver and he only settles one time per year. He has never sent an "estimated tax payment".
That leads me to believe that the estimated payment is optional.
Yes? No?
David Hall
David,
The answer to this is either, you do not have to pay estimated taxes, but if you notice on the bottom of page 2 of the 1040, there's Line 77, that says the following "ESTIMATED TAX PENALTY", , it does not add up to a heck of a lot but you are still going to pay it no matter what. it is charged even if you pay it. My suggestion is pay it. it makes it easier on you at the end of the year, and if you overpay you get a refund of the overage.
you have to remember Cargo Van Drivers get 2 Major expense deductions
the Per Diem and are allowed the standard mileage rate. depending on weather they in the first year they use it. a business person cannot jump from mileage to actual and back to mileage. once it is changed to actual it must stay actual until the life of the vehicle is ended. 5 years for a cargo van. If you take the actual expense in the first year, with depreciation, you can not switch to the standard mileage rate at all.
Straight trucks and T/T's are not allowed to take mileage rate, but have to take actual expenses. depreciation is 3 years with a 4 year life,
And yes to the e-mail you sent me , I will have a table at the Expo this year. So I will see you there.
Frank
I have a friend who is a cargo van driver and he only settles one time per year. He has never sent an "estimated tax payment".
That leads me to believe that the estimated payment is optional.
Yes? No?
David Hall
David,
The answer to this is either, you do not have to pay estimated taxes, but if you notice on the bottom of page 2 of the 1040, there's Line 77, that says the following "ESTIMATED TAX PENALTY", , it does not add up to a heck of a lot but you are still going to pay it no matter what. it is charged even if you pay it. My suggestion is pay it. it makes it easier on you at the end of the year, and if you overpay you get a refund of the overage.
you have to remember Cargo Van Drivers get 2 Major expense deductions
the Per Diem and are allowed the standard mileage rate. depending on weather they in the first year they use it. a business person cannot jump from mileage to actual and back to mileage. once it is changed to actual it must stay actual until the life of the vehicle is ended. 5 years for a cargo van. If you take the actual expense in the first year, with depreciation, you can not switch to the standard mileage rate at all.
Straight trucks and T/T's are not allowed to take mileage rate, but have to take actual expenses. depreciation is 3 years with a 4 year life,
And yes to the e-mail you sent me , I will have a table at the Expo this year. So I will see you there.
Frank
On the quarterly payment issue ... Is it correct you do not have to file quarterly if you had no tax liability the previous year ? For example , someone was employed one year and received a tax refund or was self employed and showed a loss . Would this exempt them from quarterly payments the next year ?
On the quarterly payment issue ... Is it correct you do not have to file quarterly if you had no tax liability the previous year ? For example , someone was employed one year and received a tax refund or was self employed and showed a loss . Would this exempt them from quarterly payments the next year ?
Crazynuff,
basically NO It would be up to your accountant of weather he feels or computes a estimated tax payment is due or not depending on your income vs expenses, and calulates the per diem and mileage for a cargo van to see if you owe. it would be the same for a straight truck or Tractor/trailer. but no mileage is taken in consideration,
Normally the 1 st year there is a no profit due to startup, but the second there will show a profit depending on depreciation and expenses that are taken.
Frank
Crazynuff,
basically NO It would be up to your accountant of weather he feels or computes a estimated tax payment is due or not depending on your income vs expenses, and calulates the per diem and mileage for a cargo van to see if you owe. it would be the same for a straight truck or Tractor/trailer. but no mileage is taken in consideration,
Normally the 1 st year there is a no profit due to startup, but the second there will show a profit depending on depreciation and expenses that are taken.
Frank
dhalltoyo
Veteran Expediter
Frank, you wrote:
You have to remember Cargo Van Drivers get 2 Major expense deductions, the Per Diem and are allowed the standard mileage rate. Depending on whether they in the first year they use it. a business person cannot jump from mileage to actual and back to mileage.
Once it is changed to actual it must stay actual until the life of the vehicle is ended. 5 years for a cargo van. If you take the actual expense in the first year, with depreciation, you can not switch to the standard mileage rate at all.
Question: Which is the better way to go, mileage or actual?
The van was a 2008 purchased in August 2007 and had about $1600 worth of upgrades added, which were over and above the origianl purchase price.
I should average 75,000 to 85,000 miles per year, but for 2007 I would only have 30,000 miles.
You have to remember Cargo Van Drivers get 2 Major expense deductions, the Per Diem and are allowed the standard mileage rate. Depending on whether they in the first year they use it. a business person cannot jump from mileage to actual and back to mileage.
Once it is changed to actual it must stay actual until the life of the vehicle is ended. 5 years for a cargo van. If you take the actual expense in the first year, with depreciation, you can not switch to the standard mileage rate at all.
Question: Which is the better way to go, mileage or actual?
The van was a 2008 purchased in August 2007 and had about $1600 worth of upgrades added, which were over and above the origianl purchase price.
I should average 75,000 to 85,000 miles per year, but for 2007 I would only have 30,000 miles.
Our logic for taking the standard deduction for our new van:
There'd be almost no maintenance as in big repairs for first 2 years at least.
Fuel costs at 22 mpgs fuel costs would be alot lower.
If ya figure .44.5 cents per mile deduction for over 100,000 miles= 44,500 dollars and put on the per diem...thats a whack of a deductions.
This is with the intent on replacing van in 4 years.
There'd be almost no maintenance as in big repairs for first 2 years at least.
Fuel costs at 22 mpgs fuel costs would be alot lower.
If ya figure .44.5 cents per mile deduction for over 100,000 miles= 44,500 dollars and put on the per diem...thats a whack of a deductions.
This is with the intent on replacing van in 4 years.
RLENT
Veteran Expediter
I'm not Frank and I didn't do the holiday inn thing either but my guess is that it depends highly on your individual situation.
If you want (or need) more deductions now, early in the life of the vehicle, to reduce taxable income, you will certainly be better off taking the per mile rate as opposed to actual costs (assuming a new vehicle, which requires little in the way of repairs and maintenance)
On the otherhand, in later years, if you are on the per mile rate and have large outlays for repairs, you will have that expense and you will be limited to taking the per mile rate - even if the cost of operation and any necessary repairs exceed that.
From what I can gather, generally it seems, accountants lean to taking the per mile rate as opposed to actual costs. But it may depend on many things - such as whether you have other sources of income, etc. beyond expediting.
You didn't say what the upgrades were specifically, but it's possible that you might be able to "expense" them 100% in the tax year you made them, under Section 179.
If you want (or need) more deductions now, early in the life of the vehicle, to reduce taxable income, you will certainly be better off taking the per mile rate as opposed to actual costs (assuming a new vehicle, which requires little in the way of repairs and maintenance)
On the otherhand, in later years, if you are on the per mile rate and have large outlays for repairs, you will have that expense and you will be limited to taking the per mile rate - even if the cost of operation and any necessary repairs exceed that.
From what I can gather, generally it seems, accountants lean to taking the per mile rate as opposed to actual costs. But it may depend on many things - such as whether you have other sources of income, etc. beyond expediting.
You didn't say what the upgrades were specifically, but it's possible that you might be able to "expense" them 100% in the tax year you made them, under Section 179.