What expenses can be deducted?

cornerstone

Expert Expediter
I was an independent contractor in 2006 and I received 60% of the gross of the truck. I paid for fuel and tolls and the workers comp insurance. What can I deduct as far as the truck goes? Can I use the miles as a deduction? I also know I can take the $52 a day per diem.

Thanks.
 

MSinger

Expert Expediter
I drive a 10,000# GVWR cube van. I should be able to take the mileage deduction vs actual expenses. However on the per diem since I do not have to log can I still take the 75%?
Thanks
 

Fkatz

Veteran Expediter
Charter Member
I was an independent contractor in 2006 and I received 60% of the gross of the truck. I paid for fuel and tolls and the workers comp insurance. What can I deduct as far as the truck goes? Can I use the miles as a deduction? I also know I can take the $52 a day per diem.
Thanks.




Hi Cornerstone,

What can I deduct as far as the truck goes?

Send me a direct E-mail and I will attach a deductible listing of the items you can deduct

Can I use the miles as a deduction?

If you are in a Straight Truck or a Tractor/Trailor( NO )

You must take actual expenses like fuel, tolls, workmen comp, etc

Only if you are in a Cargo Van, or Pick-up or Corgo van with a 12-14 ft box then YES you can take the mileage deduction

And yes the per diem is $52.00 per day but only $39.00 of it is the actual deduction that you will recieve,

If your doing your own taxes, and using a over the counter software, make sure you find the correct information for SUBJECT TO DOT REGULATIONS AND ENTER THE FULL AMOUNT ON THE LINE, IT WILL AUTOMATICALLY CALCULATE THE 75% ALLOWANCE THAT YOU WILL RECIEVE.


IF you have any additional question please do not hesitate to ask,
or if you want more information you can e-mail me directly at [email protected]


Franklin Katz, ATP
 

Looney2

Seasoned Expediter
Just started recently so 2007 will be the first time I will have owner/operator deductions. I drive a cargo van and would like to know what sorta things I can deduct so I can start keeping track. I also own my own plumbing business and write the van payments and interest off from the plumbing end of things. Will that change as my plumbing vehicle is now a expediter? Can I lease the van to myself from the plumbing company to the expediting end of things or should I still write in off under the plumbing company? Can I write off the per diem thing?? Looney:)
 

Fkatz

Veteran Expediter
Charter Member
MSinger
Member since Jan-4-05
191 posts
4 feedbacks
8 points 2. "RE: What expenses can be deducted?"
Mar-10-07, 07:38 AM (EDT)
In response to message #1

I drive a 10,000# GVWR cube van. I should be able to take the mileage deduction vs actual expenses. However on the per diem since I do not have to log can I still take the 75%?
Thanks

Looney2
Member since Jan-8-07
34 posts 3. "RE: What expenses can be deducted?"
Mar-12-07, 10:32 AM (EDT)
In response to message #2

Just started recently so 2007 will be the first time I will have owner/operator deductions. I drive a cargo van and would like to know what sorta things I can deduct so I can start keeping track. I also own my own plumbing business and write the van payments and interest off from the plumbing end of things. Will that change as my plumbing vehicle is now a expediter? Can I lease the van to myself from the plumbing company to the expediting end of things or should I still write in off under the plumbing company? Can I write off the per diem thing?? Looney


To both, M. Singer and Loony.

If you have a Cargo Van, Yes you can take both the standard mileage rate, less any personal miles that you actually travel, Meaning dont use all of the miles unless you actually need the full deduction inorder to reduce you Social Security tax. Normally when mileage is used you must take a percentage of around 15% for personal use. If you do not have another vehicle available. This is could be a possible red flag if you claim over 100,000 miles.

Both of you can still write off the Per Diem, As long as you have a written record of the loads or trips that you have done. with shipper and consignee on the records.

The Per diem is the number of days that you are on the road, away from your home.

In order to figure the partial days which are the days you leave and return, it is figured by the time of day you actually leave or return, it would be based on quarter days, 12AM to 6AM, 6AM to Noon, Noon to 6PM and 6PM to Midnight. you would recieve the daily rate based on the time.

example: you leave at 3PM So you would be able to take 1/2 day for that day. and when you arrive home again, lets say 5 PM you would be allowed 3/4 of a day. so for those 2 days you have 1 and 1/4 days out.in addition to the days during the week so if you leave on Sunday at 3PM and return home on Saturday you would have 6 1/4 days for the per diem.



I also own my own plumbing business and write the van payments and interest off from the plumbing end of things. Will that change as my plumbing vehicle is now a expediter? Can I lease the van to myself from the plumbing company to the expediting end of things or should I still write in off under the plumbing company? Can I write off the per diem

This part if the answer is for Loony only,

First of all let me ask you this, your still paying on the van for the plumbing business if I am correct in your question. and the big question is DO YOU STILL DO ANYTHING WITH THE PLUMBING BUSINESS NOW.? IS OR WAS THE PLUMBING BUSINESS A CORPORATION ?

iF YOU ARE NOT STILL DOING PLUMBING AND YOU DID NOT FILE YOUR 2006 TAX RETURN YET. ON YOU SCH C IF YOU FILED ONE, WHICH I TAKE YOU DID, YOU MUST CHECK THE BOX THAT SAYS "BUSINESS DESPOSED OF IN 2006" IF YOU DID NOT YOU WILL HAVE TO FILE AN AMENDED RETURN AND CHECK THAT BOX ON YOUR SCH C.

Then as far as 2007 is concerned since it is a cargo van you want to take the mileage and not actual expenses, but you must keep all the information for 2007 as if you used actual expense, just in case of an audit to show what the actual expenses would of been or if the irs decides that you cannot use the standard mileage rate. which some areas of the country the IRS has clamped down on that. and disallowed the mileage rate. SO KEEP ALL RECIEPTS, REPAIRS, FUEL, MAINTENANCE ETC.

If both of you Msinger and Loony would like a complete deductible listing you must e-mail me at [email protected] inorder to receive one.

if there are anyother question please do not hesitate to ask,

Thank you for your inquiry,

Franklin Katz, ATP
Frank's Tax & Business Service
226 S Cherokee St.
KIngs Mountain, NC 28086
704-739-4039
Fax 704-739-3934
 
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