SORRY, for this post, but it is getting to that time of year again for you to gather your information and expenses, and either sending them to your accountant,or tax preparer that you choose. Make the correct choice and find someone who knows how to do Truck Drivers Income Taxes. Ask some questions,
1) What is the length of depreciation for a truck (tractor or Straight) in years?,
2) Which can I take, do I have to take Actual expense or can I take the standard mileage deduction? using a Straight truck OR TRACTOR
3) What's A Lumper?
QUESTION 1- IS 3 YEARS WITH A 4 YEAR LIFE,
QUESTION 2- YOU MUST TAKE ACTUAL EXPENSES AND DEPREICATION ONTHE VEHICLE, REMEMBER IF YOU TRADE IN OR SELL AND BUY NEW YOU MUST RECAPTURE ALL THE DEPRECIATION THAT HAS BEEN TAKEN OVER THE YEARS.
iF THEY SAY THERE NOT SURE OR 5 YEARS FOR DEPREICATION *****RUN**** AND FIND ANOTHER ACCOUNTANT WHO KNOWS.
QUESTION 3- LOADER OR UNLOADER,
There are a couple of items I would like to bring up inreference to some of the receipts. If any of you purchase, fuel, supplies, or anything that a thermal receipt is given, you better make a copy of it. Especially, Wal-Mart, Pilot, Flying J's, and a number of toll states. These receipts do fade out and there is no way that you will be able to prove that you had the expense. The IRS will not honor these faded reciepts as proof of the expense.
PER DIEM
Remember your Per diem is not available to you at the New Rate unless you started in business after Oct 1, 2005, so you must take $41.00 US and $ 46. Canada per day for the whole year.
If you started after Oct 1, 2005 the rate is $52US and $58 Canada
sTANDARD MILEAGE DEDUCTION
If you take the standard mileage deduction is $ .405 per mile prior to August 31,, 2005, The New Standard Deduction After September 1, is $ .485 per mile.
Frank Katz
Frank's Tax & Business Service
226 S. Cherokee St
Kings Mountain, NC 28086
704-739-4039
Fax 704-739-3934
E-mail [[email protected]]
1) What is the length of depreciation for a truck (tractor or Straight) in years?,
2) Which can I take, do I have to take Actual expense or can I take the standard mileage deduction? using a Straight truck OR TRACTOR
3) What's A Lumper?
QUESTION 1- IS 3 YEARS WITH A 4 YEAR LIFE,
QUESTION 2- YOU MUST TAKE ACTUAL EXPENSES AND DEPREICATION ONTHE VEHICLE, REMEMBER IF YOU TRADE IN OR SELL AND BUY NEW YOU MUST RECAPTURE ALL THE DEPRECIATION THAT HAS BEEN TAKEN OVER THE YEARS.
iF THEY SAY THERE NOT SURE OR 5 YEARS FOR DEPREICATION *****RUN**** AND FIND ANOTHER ACCOUNTANT WHO KNOWS.
QUESTION 3- LOADER OR UNLOADER,
There are a couple of items I would like to bring up inreference to some of the receipts. If any of you purchase, fuel, supplies, or anything that a thermal receipt is given, you better make a copy of it. Especially, Wal-Mart, Pilot, Flying J's, and a number of toll states. These receipts do fade out and there is no way that you will be able to prove that you had the expense. The IRS will not honor these faded reciepts as proof of the expense.
PER DIEM
Remember your Per diem is not available to you at the New Rate unless you started in business after Oct 1, 2005, so you must take $41.00 US and $ 46. Canada per day for the whole year.
If you started after Oct 1, 2005 the rate is $52US and $58 Canada
sTANDARD MILEAGE DEDUCTION
If you take the standard mileage deduction is $ .405 per mile prior to August 31,, 2005, The New Standard Deduction After September 1, is $ .485 per mile.
Frank Katz
Frank's Tax & Business Service
226 S. Cherokee St
Kings Mountain, NC 28086
704-739-4039
Fax 704-739-3934
E-mail [[email protected]]