Help with taxes from towing Please

[RedRam401]

Not to be too picky but:

1. Are you a Business with DOT authority to work your truck for hire? If not then you can not claim business expenses.

2. Do you have a written lease from the company that paid you to use your truck?

In my mind, if you are bootlegging freight then you don't have the legal right to deduct expenses. That's why I have my own authority, pay $10,000. 00 a year in insurance, pay interstate fuel taxes, fill out legal forms up the wazoo.....

My advice is to gather your records and invest in a taxman.

Even with my trucking company I only pay $500 to have my corporate taxes prepared, I pay another $150 as an annual fee in the event that I am audited (for this fee he will represent me in the audit without any further fee).

Not intending to flame you here, but you made $10,000 last year and I'll bet that you did it under the table as far as DOT requirements. This means that had you run over a family on the road your insurance company could have refused coverage. I have no sympathy for your trying to save money. I'm sure that there is a reputable company that could have used that business.

 

[E7mack96]

Exactly what was different in the way your accountant did the taxes. It is hard to imagine that HR Block could short you $3,000 legit dollars. Their tax software is highly accurate. The person inputting the data may not be, though.



I know of an accountant here in the Cincy area that makes peoples taxes as low as they want. Its all in the numbers. The man will end up in prison sometime.



I just hope yours wasn't one of those types.

 

[R C Cola]

I wonder why ? ?

Uncle Sam is at again. He allows government employees... $ 60 for lodging and $ 31 for food = $ 91 / per day. We are allowed half of that. . Hmmm. . Wonder Why ? ? :-{}

 

[GAmes]

Uncle Sam is at again. He allows government employees... $ 60 for lodging and $ 31 for food = $ 91 / per day. We are allowed half of that. . Hmmm. . Wonder Why ? ? :-{}

That is how much they are allowed for traveling on gov't business. A flat rate for meals depending on their location and "up to" rate for lodging, depending on location. They don't get a deduction on their taxes for it.

 

[GAmes]

2. Do you have a written lease from the company that paid you to use your truck?



In my mind, if you are bootlegging freight then you don't have the legal right to deduct expenses. That's why I have my own authority, pay $10,000. 00 a year in insurance, pay interstate fuel taxes, fill out legal forms up the wazoo.....

If he provides his accountant with a 1099 he is not bootlegging, he is working with a lease.

 

[RedRam401]

Bootlegging

If he provides his accountant with a 1099 he is not bootlegging, he is working with a lease.

Just because he is getting a 1099 does not mean he wasn't "hauling for hire" illegilly or bootlegging.

He can only haul for hire if he has an MC#, USDOT# and proper insurance (Auto Liability of $750,000. 00 and Motor Truck Cargo of $100,000. 00)

Companies give 1099s for what could be considered "contract labor".

This probably seems petty, however when legitimate carriers pay big $$ to operate legally, then I take offense at someone who works illegally.

 

[GAmes]

He can only haul for hire if he has an MC#, USDOT# and proper insurance (Auto Liability of $750,000. 00 and Motor Truck Cargo of $100,000. 00)



Companies give 1099s for what could be considered "contract labor".

I'm wondering where you got the idea that he doesn't have that stuff? My lease with a transport company makes me contract labor, and they provide the cargo insurance and the USDOT#.

 

[RedRam401]

I'm wondering where you got the idea that he doesn't have that stuff? My lease with a transport company makes me contract labor, and they provide the cargo insurance and the USDOT#.

This was his first paragraph:

"OK, so this last year I pulled some trailers around for a company and made some extra money. Now its the end of the year and i need to know what to do. I know I can file like normal and just put down that I worked for myself. They are going to send me a 1099 form with how much they paid me but I had alot of expenses out of that. "

I could be totally wrong, but it sounds like he was bootlegging, not leased to a carrier.

In your case, the carrier also has an MC# and they take a set percentage of the revenue for this.

As you well know, this business is very competitve and anyone who operates legally has my total respect.

Many hotshot operators are making nearly the same per mile average as I am, I just hate to think of giving up that 70" sleeper.

 

[GAmes]

You are right Red Ram, I hadn't read all the way back to the originator. You may be right. I'll try to mind my own business in the future

 

[R C Cola]

70" Sleeper

Red Ram, I can vouch for the point sleeping on the seat is the pitts !!! I would like to jump up to at least a stretch frame or a FL 70 with a cummins and have a decent sleeper. But, darn it all first I have to make enough money to afford either one. Competitive is a "nice" word for what is going on in the freight business with the rates being paid. ! R C

 

[RedRam401]

GAmes,

Don't worry about it

 

[RedRam401]

Red Ram, I can vouch for the point sleeping on the seat is the pitts !!! I would like to jump up to at least a stretch frame or a FL 70 with a cummins and have a decent sleeper. But, darn it all first I have to make enough money to afford either one. Competitive is a "nice" word for what is going on in the freight business with the rates being paid. ! R C

R C Cola

I started with the Pete and then was tempted to put a driver in it and run the CTD myself, but thought better of it.

 

[SteveMiller]

Well thanks for the help from everyone. I believe I got the number of someone who can help me out. Plus i got an idea of what information I need so that I can go in with numbers instead of a big stack of papers.



As for the bootlegging thing... I'm sorry you're in such a bad business that someone who does a couple odd jobs on weekends gets you so mad. I'm pretty sure I'm fine and have all the right paperwork from the company. I have insurance info from them and was led to believe I was covered. I don't know what I'll get from them for the year, one of their employees said they thought I'd get a 1099. I'll look into it all further before doing any additional work for them however. I'm not sure what about my statement seems so wrong to you though. I still have to file taxes as a sole proprietor correct? Which means I work for myself even though they lease me out. Maybe I'm wrong about this.



I would like to say that I don't go looking for this work. This company contacted me and the work I do for them can't be done by a regular driver. The majority of the work I do is not pulling the trailer, but rather running the trailers onsite. And I'm sure this isn't you but the times that I've been onsite and they do have another driver bringing the trailer, they usually can't follow directions to save their life and one time I had to go help one out because he couldn't change the tire on the trailer when it had a flat. Anyway enough of this. The truck has been hired out and did work, that was why I was asking. I'm not a hotshotter. I don't advertise. I don't ask for work. I'm not trying to step on anyone elses toes but if they called you and asked you to do what I do you would tell them no. And then they would call me anyway.