April 7, 2025

Trucker Per Diems, Qualified Business Income Deductions QBI

Trucker Per Diems, Qualified Business Income Deductions QBI

TaxTalk4U Trucker Per Diems, Qualified Business Income Deductions QBI. How do trucker per diems work and what are days on the road. QBI or qualified business income dedcution can save you taxes by taking the 20% deduction for Qualified Business...

iHeartRadio podcast player iconSpotify podcast player iconAmazon Music podcast player iconApple Podcasts podcast player iconAudible podcast player iconPandora podcast player iconDeezer podcast player iconPodchaser podcast player iconSpreaker podcast player iconPodcast Addict podcast player iconJioSaavn podcast player iconCastbox podcast player iconYoutube Music podcast player iconYouTube podcast player iconCastamatic podcast player iconOvercast podcast player iconCastro podcast player iconFountain podcast player iconGoodpods podcast player iconPocketCasts podcast player iconPodurama podcast player iconPodverse podcast player iconPodyssey podcast player iconRSS Feed podcast player icon
iHeartRadio podcast player iconSpotify podcast player iconAmazon Music podcast player iconApple Podcasts podcast player iconAudible podcast player iconPandora podcast player iconDeezer podcast player iconPodchaser podcast player iconSpreaker podcast player iconPodcast Addict podcast player iconJioSaavn podcast player iconCastbox podcast player iconYoutube Music podcast player iconYouTube podcast player iconCastamatic podcast player iconOvercast podcast player iconCastro podcast player iconFountain podcast player iconGoodpods podcast player iconPocketCasts podcast player iconPodurama podcast player iconPodverse podcast player iconPodyssey podcast player iconRSS Feed podcast player icon
Season 2

TaxTalk4U Trucker Per Diems, Qualified Business Income Deductions QBI. How do trucker per diems work and what are days on the road. QBI or qualified business income dedcution can save you taxes by taking the 20% deduction for Qualified Business income. Do you qualify? Augusta Rule - rent your home to your business up to 14 days. Do you know the rules to apply the Augusta rule toyour home. Get the dedcution for your business and exclude the revenue on you taxes from the rental of your home.

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).

Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.

Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.

WEBVTT

1
00:00:00.080 --> 00:00:02.319
The topics and opinions express in the following show are

2
00:00:02.319 --> 00:00:03.960
solely those of the hosts and their guests and not

3
00:00:04.000 --> 00:00:06.879
those of W FOURCY Radio. It's employees are affiliates. We

4
00:00:06.960 --> 00:00:10.039
make no recommendations or endorsements for radio show programs, services,

5
00:00:10.080 --> 00:00:12.400
or products mentioned on air or on our web. No

6
00:00:12.519 --> 00:00:15.400
liability explicit or implies shall be extended to W FOURCY

7
00:00:15.519 --> 00:00:18.199
Radio or it's employees are affiliates. Any questions or comments

8
00:00:18.239 --> 00:00:20.440
should be directed to those show hosts. Thank you for

9
00:00:20.519 --> 00:00:27.199
choosing W FOURCY Radio.

10
00:00:27.920 --> 00:00:28.320
Barry G.

11
00:00:28.519 --> 00:00:31.559
Foul Ea brings you tax talk for you right here

12
00:00:31.600 --> 00:00:35.280
on W four CY Radio and Talkboard TV. As an

13
00:00:35.439 --> 00:00:39.799
enrolled agent and a national leader in tax resolution as

14
00:00:39.840 --> 00:00:44.119
well as Trucker bookkeeping and tax planning. With over thirty

15
00:00:44.200 --> 00:00:50.520
years of experience, Barry will break down taxes, bookkeeping, tax planning,

16
00:00:50.840 --> 00:00:54.280
and tax relief for individuals and businesses just like you.

17
00:00:54.880 --> 00:00:58.840
So let's have some tax talk for you with your hosts.

18
00:00:58.880 --> 00:01:05.359
Barry G. Foul Hey, welcome in morning, great Monday morning.

19
00:01:05.439 --> 00:01:09.760
To get started. You know we're coming to eight days

20
00:01:09.799 --> 00:01:13.519
away from tax filing deadline, so if you haven't gotten

21
00:01:13.560 --> 00:01:17.840
your taxes filed yet, get in there and get your

22
00:01:17.840 --> 00:01:21.719
taxes filed, or get yourself an extension of time to file.

23
00:01:22.200 --> 00:01:25.239
Now you've got to remember, you know, these extensions are

24
00:01:25.439 --> 00:01:28.560
just an extension of time to file, not an extension

25
00:01:28.560 --> 00:01:31.560
of time to pay. So you know you can you

26
00:01:31.560 --> 00:01:33.480
can get the extension, but if you're going to owe

27
00:01:33.480 --> 00:01:35.920
money to the I r S, your best to send

28
00:01:35.959 --> 00:01:39.280
in I think you're going to owe that way, you know,

29
00:01:39.359 --> 00:01:44.239
you don't have extra penalties and interest if you overpay

30
00:01:44.480 --> 00:01:48.760
because you did an overestimate that can be refunded. It

31
00:01:48.760 --> 00:01:52.040
can be left there as part of your estimated tax payments.

32
00:01:52.400 --> 00:01:55.359
Whatever you need to do, but make sure you get

33
00:01:55.359 --> 00:01:57.840
that extension filed, even if you can't pay. I mean,

34
00:01:57.920 --> 00:02:01.640
get the extension file because you know, there's there's too

35
00:02:01.680 --> 00:02:03.879
many penalties out there that the I r S loves

36
00:02:03.920 --> 00:02:07.640
to issue, and they're going to issue them against you

37
00:02:07.920 --> 00:02:10.919
either way. So you know, get that, get that done

38
00:02:10.919 --> 00:02:15.360
and at least alleviate that timely filing penalty, and then

39
00:02:15.439 --> 00:02:18.120
get it filed within the next six months. You know,

40
00:02:18.800 --> 00:02:21.560
that's one of the things that we always look at for,

41
00:02:22.000 --> 00:02:26.000
you know, people that we're filing taxes for, and especially

42
00:02:26.080 --> 00:02:28.520
you know when we're working with you know, truckers, owner

43
00:02:28.560 --> 00:02:32.800
operators out there and other small businesses. Sometimes it takes

44
00:02:32.879 --> 00:02:35.120
a little bit longer to gather all their paperwork and

45
00:02:35.159 --> 00:02:38.879
get everything right. You know, when you hand you know

46
00:02:39.039 --> 00:02:41.520
profit and lass that somebody else has done and it

47
00:02:41.560 --> 00:02:45.919
has one hundred thousand dollars and ask my accountant. That's

48
00:02:45.960 --> 00:02:49.319
not a complete financial statement. You know, it's more of

49
00:02:49.680 --> 00:02:54.439
just a joke. You know, you're not giving the information

50
00:02:54.560 --> 00:02:57.520
that is needed to prepare your taxes, and then you

51
00:02:57.599 --> 00:03:00.840
expect us to kind of decipher what you meant. That

52
00:03:01.039 --> 00:03:04.159
just doesn't doesn't work. You've got to actually dot the

53
00:03:04.199 --> 00:03:06.879
eyes across the t's. Make sure you got the right bookkeeping.

54
00:03:07.280 --> 00:03:09.759
And if you know you're a trucker owner operator out

55
00:03:09.800 --> 00:03:11.520
there and you're looking for somebody that's going to do

56
00:03:11.560 --> 00:03:14.960
bookkeeping that knows truckers, go to Trucker tax tools dot

57
00:03:15.000 --> 00:03:18.719
Com and get in there. Rates start from twenty five

58
00:03:18.759 --> 00:03:22.680
dollars a week for bookkeeping. You can't beat those rates,

59
00:03:22.800 --> 00:03:25.439
you know, anywhere out there. So if you're an owner operator,

60
00:03:25.840 --> 00:03:28.919
we thank you, We appreciate what you do. This economy

61
00:03:29.319 --> 00:03:33.560
keeps wrong because you're out there moving the goods from

62
00:03:33.639 --> 00:03:39.199
one location to another location and getting the transport. I mean,

63
00:03:39.319 --> 00:03:42.919
you know, we've we've got people transporting as there's material,

64
00:03:43.319 --> 00:03:48.120
you know, your fuel, your gas to power your cars,

65
00:03:48.240 --> 00:03:51.520
you know, goods that you're buying at the stores. That's

66
00:03:51.520 --> 00:03:53.680
what these truckers do. And so we thank the truckers

67
00:03:53.680 --> 00:03:57.280
out there for everything that they do. And of course

68
00:03:57.400 --> 00:04:01.560
we are protected by you know, the police and you

69
00:04:01.599 --> 00:04:05.680
know other people that are ouping in the community, firefighters

70
00:04:06.000 --> 00:04:08.439
and so forth, and we thank that for their services

71
00:04:08.479 --> 00:04:11.879
as well, and of course our military. You know, we're

72
00:04:11.879 --> 00:04:16.680
talking taxes, and when we talk taxes for truckers owner operators,

73
00:04:17.079 --> 00:04:22.040
something special stands out for truckers more than any other

74
00:04:22.759 --> 00:04:25.480
part of the industry. And you know when this goes

75
00:04:25.519 --> 00:04:28.879
for transportation, and that's per deems, you know. So what

76
00:04:29.079 --> 00:04:35.000
are per diems? You know? Per deems basically is a

77
00:04:35.079 --> 00:04:40.920
standard allowance for meals and incidental expenses. And so it's

78
00:04:40.920 --> 00:04:44.560
a deduction for those in the transportation you know, industry

79
00:04:44.920 --> 00:04:47.279
comes out of I R. S Publication for six y

80
00:04:47.360 --> 00:04:53.399
three for travel, entertainment, gift car and truck expenses. You

81
00:04:53.519 --> 00:04:57.839
have two choices in the transportation industry. You can either

82
00:04:57.920 --> 00:05:01.680
save all your receipts for meals and incidental expenses and

83
00:05:01.759 --> 00:05:06.040
deduct those at tax tile, or you take the IRS's

84
00:05:06.120 --> 00:05:10.120
standard meal allowance, which is currently eighty dollars. So eighty

85
00:05:10.120 --> 00:05:13.800
dollars is a significant increase from the sixty nine it

86
00:05:14.079 --> 00:05:18.079
was for most of twenty twenty four. That rate change

87
00:05:18.160 --> 00:05:22.399
happened in October, so you know, when you're doing your

88
00:05:22.399 --> 00:05:25.399
twenty twenty four taxes and you're looking at for deems,

89
00:05:25.920 --> 00:05:28.879
you've actually got to separate the number of days on

90
00:05:29.040 --> 00:05:33.439
the road nights away from home from January through the

91
00:05:33.519 --> 00:05:36.800
end of September, and then from October to the end

92
00:05:36.879 --> 00:05:38.920
of the year. Now, we don't know what the rate's

93
00:05:39.000 --> 00:05:41.959
going to be, if they're going to even change the rates.

94
00:05:42.000 --> 00:05:45.720
In twenty twenty five, took them many years to actually

95
00:05:45.959 --> 00:05:50.680
change the rates from sixty nine to eighty. That first

96
00:05:50.959 --> 00:05:53.839
rate change went from sixty six to sixty nine in

97
00:05:53.920 --> 00:05:58.480
twenty twenty one. But you know it stays. It's going

98
00:05:58.519 --> 00:06:00.959
to stay the same. I would zoom for a couple

99
00:06:01.000 --> 00:06:03.759
of years. So we'll see what the IRS does with

100
00:06:03.879 --> 00:06:09.079
per diem rates this year now. Also different for twenty

101
00:06:09.160 --> 00:06:14.399
twenty four versus twenty one and twenty two is still

102
00:06:14.439 --> 00:06:17.480
only eighty percent deductible, So you don't get one hundred

103
00:06:17.480 --> 00:06:23.000
percent deductible deductibility of per diems in twenty twenty four

104
00:06:23.160 --> 00:06:27.680
as you did in twenty two and twenty one. That's

105
00:06:27.800 --> 00:06:32.399
out there, so making sure you're tracking those nights away

106
00:06:32.879 --> 00:06:38.120
from home. So what does this mean for you as

107
00:06:38.160 --> 00:06:43.000
an owner operator truck drap? You know, maintaining a good

108
00:06:43.160 --> 00:06:46.920
log of your days on the road. Now we're talking

109
00:06:46.920 --> 00:06:49.519
about nights away from home. So if you're just doing

110
00:06:50.040 --> 00:06:53.560
transportation within you know your city and just day runs

111
00:06:53.600 --> 00:06:57.240
and everything, you're not going to get per diems or meals.

112
00:06:58.360 --> 00:07:02.279
But if you're going and staying away from home, that

113
00:07:02.399 --> 00:07:06.279
first night you leave, you get credit for half a day,

114
00:07:06.759 --> 00:07:10.240
and then next the day you come home, you get

115
00:07:10.279 --> 00:07:12.959
credit for a half a day. All the days in

116
00:07:13.040 --> 00:07:16.839
between are full days on the road and are at

117
00:07:16.839 --> 00:07:22.160
the full eighty dollars half days forty dollars. So either

118
00:07:22.279 --> 00:07:25.959
keep your manual logbook, maybe you can look into your

119
00:07:26.040 --> 00:07:31.199
eled to see how it's tracking. You can use some

120
00:07:31.279 --> 00:07:34.079
of the apps that are out there that can track

121
00:07:34.160 --> 00:07:40.120
prettyums and everything else for you. You have different options to

122
00:07:40.199 --> 00:07:46.639
choose how you're going to track your nights on the road. Now,

123
00:07:47.120 --> 00:07:50.600
i RS qualifications. You know, we always got to have qualifications,

124
00:07:50.839 --> 00:07:53.560
you know, we got to know what's the detail behind.

125
00:07:54.000 --> 00:07:58.040
And so for truck drivers to be eligible for pro diems,

126
00:07:58.279 --> 00:08:01.360
you know, this is funny. To be employed in the

127
00:08:01.399 --> 00:08:05.240
transportation industry and your job must keep you away from

128
00:08:05.240 --> 00:08:08.680
home on a regular basis long enough for you to

129
00:08:08.759 --> 00:08:13.160
sleep away from home. Now, in the transportation industry, that

130
00:08:13.240 --> 00:08:17.160
means your job has to be directly involving moving goods

131
00:08:17.360 --> 00:08:21.680
for people by truck, train, bus, ship, airplane or barge.

132
00:08:21.800 --> 00:08:25.560
So those are your options. That's what the IRS shows

133
00:08:25.920 --> 00:08:30.800
in Publication four sixty three, so that you can know

134
00:08:30.959 --> 00:08:35.440
that you qualify for predems. So something else that has

135
00:08:35.519 --> 00:08:39.639
to happen in your industry and for your life, and

136
00:08:39.720 --> 00:08:43.600
it's one of the biggest things that the IRS puts

137
00:08:43.639 --> 00:08:46.440
out there. You must have a tax home. And to

138
00:08:46.519 --> 00:08:50.320
qualify for a tax home, you're required to incur expenses

139
00:08:50.360 --> 00:08:54.159
to maintain the home while you're on the road, whether

140
00:08:54.159 --> 00:08:58.320
you're running an apartment, running a place to live, paying

141
00:08:58.440 --> 00:09:03.320
mortgage payments, these are items that you're paying for to

142
00:09:03.399 --> 00:09:05.919
maintain your own Now, if you're just living in your

143
00:09:05.919 --> 00:09:09.639
truck and you have no home, man, You're You're like

144
00:09:10.039 --> 00:09:13.440
a turtle. You take your home with you everywhere you go.

145
00:09:13.879 --> 00:09:16.960
Don't be the tax turtle. Get a home, a home

146
00:09:17.080 --> 00:09:22.720
that you have to maintain expenses for. So track those days,

147
00:09:23.200 --> 00:09:26.799
track those nights on the road. Make sure that you're

148
00:09:27.080 --> 00:09:30.200
dieting the eyes and crossing the tase with this so

149
00:09:30.279 --> 00:09:34.600
that you're getting every single deduction for the pretty deep

150
00:09:34.679 --> 00:09:38.960
per diems that you can get. Now, this is owner operators,

151
00:09:39.159 --> 00:09:43.519
independent contractors that are out there running your own business,

152
00:09:43.919 --> 00:09:49.120
so proprietors, not W two drivers. So if you're a

153
00:09:49.159 --> 00:09:53.279
trucker and you are a W two employee, you're not

154
00:09:53.559 --> 00:09:57.759
going to get per diems that are deductible on your

155
00:09:57.960 --> 00:10:01.240
tax return, but you still could beguining per diems from

156
00:10:01.279 --> 00:10:04.519
your employer that are non tax. There are some good things,

157
00:10:04.600 --> 00:10:07.399
there are some bad things with getting per diems or

158
00:10:07.440 --> 00:10:10.759
even taking per diems as a trucker. We're going to

159
00:10:10.799 --> 00:10:13.360
talk about those good and bad right after the s break.

160
00:10:14.639 --> 00:10:18.320
We have only scratched the surface of today's show. Please

161
00:10:18.360 --> 00:10:21.600
stand by as Barry G. Fowler will be right back

162
00:10:21.679 --> 00:10:27.440
with tax talk for you. If you owe the IRS

163
00:10:27.600 --> 00:10:30.919
or are going through an IRS audit, don't go at

164
00:10:30.960 --> 00:10:35.120
it alone. Called Taxation Solutions Tax Relief at eight eight

165
00:10:35.200 --> 00:10:39.720
eight nine three zero one zero one six. We are

166
00:10:39.879 --> 00:10:46.080
your solution for IRS debts, audits, back taxes, garnishments, leans

167
00:10:46.120 --> 00:10:50.360
and levees. Whether you're an individual or business, you need

168
00:10:50.399 --> 00:10:55.519
a solution and a strong, aggressive tax resolution. Don't let

169
00:10:55.519 --> 00:10:58.919
the IRS walk all over you. Stop the IRS now

170
00:10:59.399 --> 00:11:02.840
call a eight eight nine three zero one zero one

171
00:11:02.960 --> 00:11:07.159
six or go to Taxation Solutions dot net now for

172
00:11:07.240 --> 00:11:15.600
a free no obligation consultation. Let's get back to tax

173
00:11:15.720 --> 00:11:19.000
talk for you with more tax talk once again.

174
00:11:19.480 --> 00:11:26.720
Here's your host, Parry Chief Faller. Hey, Hey, hey, welcome back. Hey.

175
00:11:26.759 --> 00:11:29.399
First off, don't shoot a messenger, all right. You know

176
00:11:29.519 --> 00:11:32.080
I'm out here. We're talking about for diems and you

177
00:11:32.120 --> 00:11:34.879
know we're saying, hey, per diems are not deductible on

178
00:11:35.000 --> 00:11:37.960
your tax return if you're a W two driver. Hey,

179
00:11:37.960 --> 00:11:41.360
it's not me that sets a tax coat. Hear. This

180
00:11:41.480 --> 00:11:45.919
has been going on since two thousand and seventeen with

181
00:11:45.919 --> 00:11:49.039
the Trump tax coats that went into effect that removed

182
00:11:49.360 --> 00:11:53.679
for deems being deductible for W two drivers. You know,

183
00:11:54.720 --> 00:11:58.279
I love the chats and I love the information. But

184
00:11:59.159 --> 00:12:01.320
you know, we don't set the code. If you don't

185
00:12:01.399 --> 00:12:04.639
like it, call your congressman. Uh. You know, we say

186
00:12:04.679 --> 00:12:08.000
that all the time to people who are complaining that

187
00:12:08.159 --> 00:12:11.919
taxes seem to be unfair to do them. And as

188
00:12:11.960 --> 00:12:17.120
I say in seminar that I give with Oida's Foundation,

189
00:12:17.679 --> 00:12:20.519
Got to Success, you know, if you don't like the

190
00:12:20.559 --> 00:12:24.840
tax code, call your congressman. Most congressmen never found a

191
00:12:24.960 --> 00:12:28.240
tax they didn't like, and they love the tax brings

192
00:12:28.279 --> 00:12:32.799
more revenue into the IRS, into the US government's just

193
00:12:33.080 --> 00:12:37.120
way of life it is. But as an employee, you

194
00:12:37.279 --> 00:12:41.679
can get you know, for DMS as a W two driver. Now,

195
00:12:41.679 --> 00:12:45.480
they're not deductible on your taxes. They're usually paid as

196
00:12:45.720 --> 00:12:49.440
an allowance or reimbursement that is non taxable to you.

197
00:12:49.720 --> 00:12:52.720
But that means usually when an employer is doing that,

198
00:12:53.279 --> 00:12:57.240
they have lowered the wages that you're going to be

199
00:12:57.919 --> 00:13:03.080
earning that are taxable for Social Security, Medicare, and federal

200
00:13:03.120 --> 00:13:06.360
and state income taxes. Now, that may seem really.

201
00:13:06.200 --> 00:13:12.039
Good to you as an employee because you're receiving money

202
00:13:12.039 --> 00:13:16.279
that is non taxable, but sometimes the bad part is

203
00:13:16.320 --> 00:13:21.759
it lowers the W two wages you're making lowers your income,

204
00:13:22.080 --> 00:13:22.919
which then.

205
00:13:22.919 --> 00:13:25.039
Can impact you if you go to a file for

206
00:13:25.480 --> 00:13:28.399
like a mortgage or a loan, because they don't see

207
00:13:28.440 --> 00:13:33.200
as much income coming in, and the mortgage company is

208
00:13:33.240 --> 00:13:36.360
not going to take into account that you're receiving this

209
00:13:36.559 --> 00:13:40.799
reimbursement for predeems, which is meals and incidentals. Now, when

210
00:13:40.840 --> 00:13:43.279
the employeer pays them, they're going to do it on

211
00:13:43.320 --> 00:13:50.240
a fixed amount of daily reimbursements for lodging, meals, incidental

212
00:13:50.279 --> 00:13:54.679
expenses when you, as an employee is away from home,

213
00:13:55.039 --> 00:13:58.039
but it cannot be more than the federal per diem rates,

214
00:13:58.360 --> 00:14:02.240
and employee's got to actually be able to prove the time, dates,

215
00:14:02.360 --> 00:14:07.440
places and business purposes of being away from home. Now,

216
00:14:07.879 --> 00:14:11.639
when you're doing this, they could actually do per diems

217
00:14:12.080 --> 00:14:15.840
on a local area. So if you're going to a

218
00:14:15.879 --> 00:14:19.399
place that has a higher per diem rate, they could

219
00:14:19.440 --> 00:14:23.320
actually give you the higher per diem rate. Most tricking

220
00:14:23.360 --> 00:14:28.559
companies that we've worked with will stay to the meals

221
00:14:28.559 --> 00:14:33.679
and incidental expends for truckers, which would be the eighty dollars.

222
00:14:33.960 --> 00:14:36.639
And if you're an employer out there and you have

223
00:14:37.159 --> 00:14:42.200
truckers under your employee, as w two drivers having a

224
00:14:42.320 --> 00:14:46.080
per diem program where your drivers can provide you also

225
00:14:46.320 --> 00:14:50.600
great saving. So at the eighty dollars rate, you could

226
00:14:50.679 --> 00:14:54.759
see an increase in savings of about seventeen hundred and

227
00:14:54.759 --> 00:14:59.559
forty dollars a year by paying per diems that a

228
00:14:59.759 --> 00:15:04.000
W to wage to your employees. Now you'll have some

229
00:15:04.279 --> 00:15:08.039
W two wage and you'll have some that goes to

230
00:15:08.120 --> 00:15:11.720
them as per deems, but you're lowering what you're paying

231
00:15:11.759 --> 00:15:16.840
them per mile or per day out there as the employer.

232
00:15:17.360 --> 00:15:21.919
So you know that's that's the hard part. You've got

233
00:15:21.919 --> 00:15:26.039
to look at it. Now, if your corporation or LLC

234
00:15:26.639 --> 00:15:32.200
or escorp, you are supposed to claim actual expenses, not

235
00:15:32.320 --> 00:15:36.440
take the per deems, So you also got to include

236
00:15:36.519 --> 00:15:41.000
that and think about that. As you're moving from a

237
00:15:41.360 --> 00:15:45.440
solar proprietorship that is fully taxed for Social Security and

238
00:15:45.559 --> 00:15:49.919
Medicare on net earnings plus your income tax on your

239
00:15:50.120 --> 00:15:54.559
just gross income could impact that decision to move from

240
00:15:55.080 --> 00:15:59.919
esc from LLC single member to maybe an escort, or

241
00:16:00.399 --> 00:16:05.840
going from a self propridership to an escort as well.

242
00:16:06.320 --> 00:16:09.840
They need to make sure that you're taking a look

243
00:16:09.879 --> 00:16:12.559
at that and dotting the i's and crossing the t's

244
00:16:13.039 --> 00:16:15.960
and getting a true estimate what the cost is to

245
00:16:16.159 --> 00:16:20.960
be an escort versus a soul proprietorship. Those are kind

246
00:16:21.000 --> 00:16:24.200
of numbers we run for each and every one of

247
00:16:24.679 --> 00:16:28.200
our drivers, our businesses that are out there. Is you

248
00:16:28.240 --> 00:16:31.799
know doesn't make sense. Is there enough savings to move

249
00:16:31.840 --> 00:16:36.240
you from a self proprietorship single member as LLC reported

250
00:16:36.320 --> 00:16:41.799
on Schedule SEC or should you move to being an

251
00:16:41.919 --> 00:16:45.000
escort the numbers don't work, don't do it. If there's

252
00:16:45.039 --> 00:16:47.919
not enough savings out there, don't do it. Because there's

253
00:16:47.960 --> 00:16:51.320
got to be good savings in order to make the

254
00:16:51.399 --> 00:16:55.360
decision to move from a schedule see business to an

255
00:16:55.519 --> 00:17:00.519
escort business, because you're going to have additional expense such

256
00:17:00.519 --> 00:17:04.519
as filing an additional return, additional complications escort if you're

257
00:17:04.559 --> 00:17:07.440
going to have to have payroll and many other complications

258
00:17:07.519 --> 00:17:11.240
that you're going to have out there for you as

259
00:17:11.440 --> 00:17:16.440
moving from just a regular reporting on SCHEDULEC to filing

260
00:17:16.480 --> 00:17:18.680
an eleven twenty s or even a ten sixty five

261
00:17:18.720 --> 00:17:22.559
partnership return. So let it make sense, make a decision

262
00:17:23.119 --> 00:17:25.720
and then decide how you want to go. Hey, don't

263
00:17:25.759 --> 00:17:27.759
forget to connect with us at tax Talk for you

264
00:17:28.000 --> 00:17:31.799
dot com and subscribe over there, and you can also

265
00:17:31.839 --> 00:17:34.720
send us messages, whether through the radio station or through

266
00:17:34.799 --> 00:17:38.440
tax Talk for you. We love to get the messages

267
00:17:38.480 --> 00:17:41.559
out there. We had Gregory to send us a message

268
00:17:41.720 --> 00:17:44.720
about investing in a business. We gave him an answer

269
00:17:44.759 --> 00:17:49.400
to his question. He's gone to a couple of different people,

270
00:17:49.480 --> 00:17:52.000
gotten a couple different answers. You know what you got

271
00:17:52.039 --> 00:17:56.039
to do in Gregory's case invested in business. It looks

272
00:17:56.079 --> 00:18:00.839
like the business went under. He's just an investor loaning money,

273
00:18:01.319 --> 00:18:06.680
getting an override on revenues and getting repaid his loan

274
00:18:06.799 --> 00:18:09.680
from the way I've interpreted. And he's gone to a

275
00:18:09.720 --> 00:18:12.400
couple different people and asked, hey, how do you know

276
00:18:12.440 --> 00:18:16.119
should I be getting a K one from this gentleman's escort?

277
00:18:16.559 --> 00:18:20.200
Should I be getting a partnership return K one? What

278
00:18:20.279 --> 00:18:22.960
should I be getting? And you get different answers. Well,

279
00:18:23.000 --> 00:18:24.640
one of the best ways to do it is go

280
00:18:24.720 --> 00:18:28.559
back to the original paperwork. What was your agreement when

281
00:18:28.599 --> 00:18:32.359
you put money up into this business? Were you a partner,

282
00:18:32.759 --> 00:18:35.200
where you considered to be an owner? Where you getting

283
00:18:35.200 --> 00:18:38.079
a certain number of shares or partnership interest? Now none

284
00:18:38.119 --> 00:18:41.359
of that applies. You're not an owner. You're not a partner.

285
00:18:41.799 --> 00:18:45.319
You're really not an investor. You're going to be more

286
00:18:45.319 --> 00:18:49.000
of a venture capitalist a loan person. So you know,

287
00:18:49.359 --> 00:18:52.119
you've got a loan or venture capital that you've put

288
00:18:52.160 --> 00:18:54.160
into this business, and you're going to need to write

289
00:18:54.160 --> 00:18:57.200
it off as possibly bad debt or bad investment. A

290
00:18:57.279 --> 00:18:59.680
couple of things you've got to look at to make

291
00:18:59.680 --> 00:19:04.000
its decision on how you're going to be able to

292
00:19:04.079 --> 00:19:08.160
take the right off of investing in a business. Get

293
00:19:08.200 --> 00:19:12.200
everything written out in good detail, not just write it out,

294
00:19:12.720 --> 00:19:14.960
to spell it out. Have both parties sign it so

295
00:19:15.039 --> 00:19:17.440
you know what you're getting into. If you're going to

296
00:19:17.480 --> 00:19:20.720
take on a partner, you're going to invest money in

297
00:19:20.720 --> 00:19:23.559
the business, you're going to loan the business money, what

298
00:19:23.720 --> 00:19:26.279
is it going to be? And then read the agreement

299
00:19:26.680 --> 00:19:28.880
and you know, I always recommend if you're going to

300
00:19:28.920 --> 00:19:31.680
do an agreement between two parties, get a lawyer involved,

301
00:19:31.880 --> 00:19:36.160
get an attorney, have a good tax guy as coach

302
00:19:36.599 --> 00:19:39.400
that's going to give you the guidance that you need

303
00:19:39.880 --> 00:19:42.559
when something like this happens. You know, sometimes going on

304
00:19:42.559 --> 00:19:45.440
a loan costs more money in the end. Sometimes just

305
00:19:46.000 --> 00:19:48.799
assuming that you know what the rules and the laws

306
00:19:48.799 --> 00:19:51.279
are aren't going to help you. If you had an

307
00:19:51.319 --> 00:19:54.119
attorney involved in an agreement and you're putting up money

308
00:19:54.160 --> 00:19:59.039
that's alone, whether it's business debt or investing, you know

309
00:19:59.359 --> 00:20:02.799
your lawyer may get a personal guarantee from the person

310
00:20:03.359 --> 00:20:07.359
that you're loaning the money to behind the company. Or

311
00:20:07.359 --> 00:20:10.680
if there's multiple people in the company, then you know

312
00:20:10.799 --> 00:20:14.599
maybe they've tied the loan to multiple people or the

313
00:20:14.640 --> 00:20:17.799
equipment of business. So there's a lot of things for

314
00:20:17.880 --> 00:20:22.400
you to look at to make decisions on which is right. Hey,

315
00:20:22.440 --> 00:20:26.160
we had questions about Qualified Business income Deduction. We're going

316
00:20:26.240 --> 00:20:29.880
to talk about GBID right after this break.

317
00:20:31.079 --> 00:20:34.759
We have only scratched the surface of today's show. Please

318
00:20:34.799 --> 00:20:38.000
stand by as Barry gif Fowler will be right back

319
00:20:38.119 --> 00:20:39.160
with tax.

320
00:20:38.920 --> 00:20:39.559
Talk for you.

321
00:20:42.519 --> 00:20:45.599
As an owner operator, you already spend too much time

322
00:20:45.640 --> 00:20:49.440
away from your family. Trucker Tax Tools handles all your

323
00:20:49.480 --> 00:20:52.680
bookkeeping and taxes. No matter what level trucker you are.

324
00:20:52.960 --> 00:20:56.119
Life on the road can be taxing, but that doesn't

325
00:20:56.160 --> 00:20:59.519
mean that your wallet or time with your family should suffer.

326
00:21:00.079 --> 00:21:04.000
Trucker Tax Tools makes your life run smoothly. Go to

327
00:21:04.039 --> 00:21:06.839
Trucker text tools dot com for a free guide that

328
00:21:06.960 --> 00:21:10.559
will give you the tools to never worry about your

329
00:21:10.599 --> 00:21:15.200
taxes again. Call Trucker Tax Tools eight seven seven nine

330
00:21:15.279 --> 00:21:19.400
sixty six two four seven seven or go to Trucker

331
00:21:19.440 --> 00:21:22.960
tax Tools dot com now and let the experts keep

332
00:21:23.000 --> 00:21:23.599
you trucking.

333
00:21:26.720 --> 00:21:28.680
Let's get back to tax stock for.

334
00:21:28.680 --> 00:21:31.519
You with more tax stock once again.

335
00:21:32.000 --> 00:21:38.160
Here's your host, Barry G. Fallo. Hey, welcome back. You know,

336
00:21:38.240 --> 00:21:40.200
like I said, we love questions, and we got a

337
00:21:40.279 --> 00:21:45.799
question you know this week about Qualified Business Income Deduction

338
00:21:45.960 --> 00:21:50.680
qb I gb I D Section one nine nine A.

339
00:21:51.720 --> 00:21:55.200
You know, all the different terms that come with this

340
00:21:55.319 --> 00:22:02.240
qualified business deeduction. Qualified business income deduction started with the

341
00:22:02.279 --> 00:22:06.559
twenty seventeen tax code, with the Trump tax Code. It's

342
00:22:06.759 --> 00:22:12.039
one of the tax cuts that's actually going away at

343
00:22:12.039 --> 00:22:17.960
the end of twenty twenty five unless Congress acts, and

344
00:22:18.440 --> 00:22:22.200
you know, hopefully Congress acts to keep this in place. Because,

345
00:22:22.240 --> 00:22:25.400
as we explain this to you, for those people that

346
00:22:25.480 --> 00:22:29.960
are in the business, whether it's a pass through business,

347
00:22:29.960 --> 00:22:35.640
sole proprietorship, you know you can benefit and do benefit

348
00:22:35.839 --> 00:22:42.119
from the Qualified Business Income Deduction GBI. Basically, this is

349
00:22:42.160 --> 00:22:45.799
the way GBI works. It is based on the net

350
00:22:46.240 --> 00:22:52.440
amount of business income with exceptions. Investment income such as

351
00:22:52.440 --> 00:22:56.480
capital gains and losses or dividends are not included. Income

352
00:22:56.519 --> 00:23:01.480
from businesses located out of you know, Ued states. Interest

353
00:23:01.599 --> 00:23:07.759
income not properly a eligable to a trade or business.

354
00:23:08.119 --> 00:23:11.839
So there's a whole list of other exceptions and everything,

355
00:23:11.839 --> 00:23:15.279
but those are the general exceptions out there now. QBA

356
00:23:16.079 --> 00:23:20.559
is only available through for owners of pass through businesses,

357
00:23:21.160 --> 00:23:25.599
including schedules C. Even if you opted to take the

358
00:23:25.640 --> 00:23:29.559
standard deduction and you're not itemizing. This is a separate

359
00:23:29.599 --> 00:23:33.279
line item on your tax return. If your business is

360
00:23:33.680 --> 00:23:39.759
a specified service trade or business, your QBI could be

361
00:23:39.839 --> 00:23:46.599
limited or disappear entirely once your taxable income reaches certain

362
00:23:46.680 --> 00:23:50.079
limits that are out there. Yes, there's limits. So what

363
00:23:50.240 --> 00:23:54.160
is a specified service trade or business where the business

364
00:23:54.200 --> 00:23:59.039
depends on the reputation or skill of its employees or owners.

365
00:23:59.359 --> 00:24:02.640
It's kind of definition. You know, it's going to include

366
00:24:02.680 --> 00:24:09.759
things like law practices, medical practices, consulting firms, professional athletes, accountants,

367
00:24:09.759 --> 00:24:14.839
financial services, members of the performing yards, investment management firms,

368
00:24:15.079 --> 00:24:19.319
and so there are exceptions out there, and there are

369
00:24:19.599 --> 00:24:22.960
limitations that are out there. Now. It is a twenty

370
00:24:23.000 --> 00:24:27.720
percent deduction, so you know. If you're single and your

371
00:24:27.720 --> 00:24:30.079
tax bill ink comes below two hundred thousand, you have

372
00:24:30.599 --> 00:24:35.519
a twenty percent aligable deduction available to you. If you're

373
00:24:35.559 --> 00:24:38.119
single and you make between two hundred and five two

374
00:24:38.160 --> 00:24:39.960
hundred and two hundred and fifty, you get a partial.

375
00:24:40.240 --> 00:24:42.559
If you're single one making over two hundred fifty thousand,

376
00:24:42.839 --> 00:24:47.680
you get none. Married, on the other hand, is basically

377
00:24:48.160 --> 00:24:51.759
double the single four hundred thousand unless you get the

378
00:24:51.799 --> 00:24:55.519
twenty percent deduction. Married filing jointly between four hundred and

379
00:24:55.519 --> 00:24:58.400
five hundred thousand, you get a partial deduction. If you're

380
00:24:58.440 --> 00:25:02.920
over the five hundred thousand, you're going to get no deduction.

381
00:25:03.599 --> 00:25:08.599
And this is if you are a specified service trade

382
00:25:09.119 --> 00:25:14.799
or business. See how those limitations apply when you're specified

383
00:25:14.839 --> 00:25:19.319
service trade or business. Now, if you're not what they

384
00:25:19.319 --> 00:25:23.920
call SSTB service specified service trade or business, but you

385
00:25:24.000 --> 00:25:28.000
have income greater than income limits of two hundred and

386
00:25:28.000 --> 00:25:31.880
thirty thousand or four hundred and sixty four thousand married,

387
00:25:32.480 --> 00:25:36.400
then your QBI can be limited to greater of the

388
00:25:36.400 --> 00:25:38.680
fifty percent of your share of the W two wages

389
00:25:39.240 --> 00:25:41.599
or twenty five percent of your share of the W

390
00:25:41.680 --> 00:25:45.000
two wages paid out in the business plus two point

391
00:25:45.039 --> 00:25:48.119
five percent of qualified property. Wow. See, there's a lot

392
00:25:48.160 --> 00:25:49.440
of things you've got to go through in a lot

393
00:25:49.480 --> 00:25:54.079
of calculations that are there, whether you are a specified

394
00:25:54.119 --> 00:25:57.200
service trade or business or whether or not. You've got

395
00:25:57.240 --> 00:26:02.599
to look at what limitations are out there now for

396
00:26:02.680 --> 00:26:05.920
most people doing their taxes. You know, if you're under

397
00:26:05.960 --> 00:26:09.200
the two hundred and thirty two thousand, whether you're specified

398
00:26:09.240 --> 00:26:15.759
service trader business or whether you are not. Well, sorry

399
00:26:15.759 --> 00:26:18.680
about that. I thought my cops were gone, and you know,

400
00:26:18.839 --> 00:26:21.559
still get a little frog on the front. You know,

401
00:26:21.640 --> 00:26:24.759
your tax software, if you've put it in correctly, is

402
00:26:24.839 --> 00:26:28.599
going to do most calculations out there. You know, when

403
00:26:28.640 --> 00:26:34.039
Gregory sorry this doom had asked this question of us,

404
00:26:34.319 --> 00:26:38.200
you know, he said, hey, the box store didn't know

405
00:26:38.240 --> 00:26:42.920
what QBI qbid Section one ninety nine A was. Because

406
00:26:43.000 --> 00:26:47.079
most people don't know what the calculations are, didn't study it.

407
00:26:47.319 --> 00:26:49.799
They rely on the software to do everything for it.

408
00:26:50.559 --> 00:26:52.920
And if you're in a lower tax bracket, the software

409
00:26:53.039 --> 00:26:56.640
does it for you simply easily, and it doesn't matter

410
00:26:56.680 --> 00:26:59.640
whether you put the business in correctly or not. But

411
00:26:59.759 --> 00:27:02.319
once you're over that, you need to know the details

412
00:27:02.359 --> 00:27:06.720
behind this deduction and QBI to make sure that you're

413
00:27:06.759 --> 00:27:11.480
calculating that twenty percent correctly in order to get the

414
00:27:11.759 --> 00:27:19.559
full deduction that you can get. It makes significant difference

415
00:27:19.759 --> 00:27:23.319
for you on your personal tax return being able to

416
00:27:23.400 --> 00:27:28.720
get that full twenty percent deduction where possible. So you know,

417
00:27:28.759 --> 00:27:32.240
we we go through these calculations. We know these calculations.

418
00:27:32.720 --> 00:27:36.680
If you're owner operator, small business out there and you're

419
00:27:36.720 --> 00:27:39.920
looking to make sure you got your QBI calculated correctly,

420
00:27:41.200 --> 00:27:43.759
get the phone, call us over at truck or tax

421
00:27:43.759 --> 00:27:49.400
Toles and let us work through your taxes to make

422
00:27:49.440 --> 00:27:55.680
sure that you're getting biggest deduction possible for QBI. You

423
00:27:55.720 --> 00:27:59.200
want to make sure that you're dotting your eyes, crossing

424
00:27:59.240 --> 00:28:03.880
your t's to get the deductions that you need to

425
00:28:03.920 --> 00:28:06.599
be able to save yourself as much money on taxes

426
00:28:06.759 --> 00:28:09.680
as possible. And we had another question come up, and

427
00:28:10.240 --> 00:28:12.200
you know, one of our consultants was on the phone,

428
00:28:12.240 --> 00:28:15.799
and when people ask questions sometimes you know these guys

429
00:28:16.920 --> 00:28:19.400
don't know the details and everything about ins and outs

430
00:28:19.440 --> 00:28:23.920
of taxes. They will get you set up with a

431
00:28:23.960 --> 00:28:27.160
meeting with one of our enrolled agents Tax Attorney cpa

432
00:28:27.359 --> 00:28:31.160
is that are going to work with you to find

433
00:28:31.160 --> 00:28:33.880
you every deduction that's out there, and a lot of

434
00:28:33.920 --> 00:28:37.960
times we're doing tax punning for our truckers, owner operators

435
00:28:37.960 --> 00:28:42.640
and small businesses that we serve. You know, things like

436
00:28:42.680 --> 00:28:46.920
this really make a difference and help you save money.

437
00:28:47.240 --> 00:28:49.640
And if you want that consultation, call us at eight

438
00:28:49.759 --> 00:28:53.279
seven seven nine ninety six two four seven seven again

439
00:28:53.359 --> 00:28:56.680
eight seven seven nine ninety six two four seven seven,

440
00:28:57.039 --> 00:28:59.960
and you know, let us help you keep your truck

441
00:29:00.200 --> 00:29:03.759
and you're on the road and your taxes to a minimum.

442
00:29:03.920 --> 00:29:07.240
So Jim asked, what's the Augusta Rule? My guy called

443
00:29:07.279 --> 00:29:11.359
me AGAs, Hey, have you heard what the Augusta rule is? Yeah, David,

444
00:29:11.759 --> 00:29:14.480
I know the Augusta You know, it is a tax

445
00:29:14.519 --> 00:29:19.200
strategy that we talk about and some business owners can

446
00:29:19.359 --> 00:29:22.880
take advantage of to save money or their business while

447
00:29:22.960 --> 00:29:26.640
getting a relatively large tax reduction. So the Augusta rule

448
00:29:26.680 --> 00:29:31.440
allows you to actually rent out your home tax free

449
00:29:31.920 --> 00:29:36.079
for fourteen days or less than a year. Now, Hey,

450
00:29:36.119 --> 00:29:39.400
as I always tell you, there's sketches to it, there's

451
00:29:39.519 --> 00:29:43.839
rules to it, and requirements and records that you've got

452
00:29:43.839 --> 00:29:47.559
to keep to be able to apply the Augusta rule

453
00:29:48.079 --> 00:29:51.519
in your business and on your personal tax return. And

454
00:29:51.559 --> 00:29:53.519
guess what we're going to tell you all those rules

455
00:29:53.839 --> 00:29:54.759
right after this break.

456
00:29:56.039 --> 00:29:59.680
We have only scratched the surface of play's show. Please

457
00:29:59.720 --> 00:30:03.279
stay by as Barry Chief Fowler will be right back with.

458
00:30:03.480 --> 00:30:04.599
Tax talk for you.

459
00:30:07.279 --> 00:30:10.599
As an owner operator, you already spend too much time

460
00:30:10.640 --> 00:30:14.839
away from your family. Stop spending time doing paperwork. Go

461
00:30:14.920 --> 00:30:19.240
to Trucker tex tools dot com a solution filled specifically

462
00:30:19.279 --> 00:30:23.039
for truckers. Trucker tax tools dot Com makes your life

463
00:30:23.240 --> 00:30:28.960
run smoothly. Let's get back to tax talk for you

464
00:30:29.039 --> 00:30:33.880
with more tax talk once again, here's your host, Barry

465
00:30:33.960 --> 00:30:34.599
gif Faller.

466
00:30:37.079 --> 00:30:43.000
Rules, Rules, rules and regulations, IRIS guidelines. It's too much,

467
00:30:43.039 --> 00:30:46.400
isn't it for everyday American, every day taxpayer out there?

468
00:30:46.680 --> 00:30:49.000
You know some of the rules. If you're just w two,

469
00:30:49.400 --> 00:30:52.920
just easy, it doesn't matter. You just go by your

470
00:30:53.559 --> 00:30:57.119
your life, start running a business, and the rules can

471
00:30:57.240 --> 00:31:01.319
really stack up the red tape. It's yeah, am I

472
00:31:01.400 --> 00:31:03.640
doing it right? And how do you know if you're

473
00:31:03.640 --> 00:31:05.960
doing it right? How do I know if I'm actually

474
00:31:06.000 --> 00:31:09.519
following the rules that the irs has to be able

475
00:31:09.559 --> 00:31:13.000
to take the deductions that are available to me as

476
00:31:13.039 --> 00:31:16.359
a business owner, as an owner operator, as a truck driver,

477
00:31:16.440 --> 00:31:19.359
as a small business guy. And you know, hey, I

478
00:31:19.400 --> 00:31:23.480
don't know that I want the complications in my life

479
00:31:23.920 --> 00:31:26.759
to follow all these rules. Some rules are worth it.

480
00:31:26.880 --> 00:31:30.000
Some rules are worth that asshle of going through and

481
00:31:30.119 --> 00:31:37.400
meticulously following the detailed items of every rule that's out there. Now,

482
00:31:37.960 --> 00:31:40.359
is the augusta rule for everybody? Well, it can be,

483
00:31:40.839 --> 00:31:44.359
and it can save you money on your taxes, but

484
00:31:44.480 --> 00:31:48.240
is it always worth the hassle of going through and

485
00:31:48.359 --> 00:31:51.440
figuring out what's the best way to do this?

486
00:31:51.799 --> 00:31:51.920
Now?

487
00:31:51.960 --> 00:31:54.480
The August rule can be used anywhere in the US.

488
00:31:54.880 --> 00:31:57.759
Strategy gets this name from the original scenario where the

489
00:31:57.839 --> 00:32:00.799
residents of Augusta, Georgia rent it out out their homes

490
00:32:01.119 --> 00:32:05.559
during the annual Masters tournament. So that's therefore August the

491
00:32:05.640 --> 00:32:09.000
rule that's where the Masters has played. It wasn't really

492
00:32:09.759 --> 00:32:13.000
originally designed to allow business owners to rent their home

493
00:32:13.039 --> 00:32:18.039
to their business, but it does apply to business owners nevertheless,

494
00:32:18.279 --> 00:32:20.960
So how can you take advantage of it? Since this

495
00:32:21.079 --> 00:32:24.720
kind of tricky that you've got to do? First step

496
00:32:24.759 --> 00:32:27.640
in implementing this tax strategy is to know the rules.

497
00:32:27.720 --> 00:32:31.279
First is the rent must be reasonable amount that is

498
00:32:31.319 --> 00:32:35.400
supported by market research. An online search for similar properties

499
00:32:35.599 --> 00:32:38.079
is sufficient, so you know if you've got people to

500
00:32:38.119 --> 00:32:42.400
do vrbos, airbnbs by you, hey, that's where your research

501
00:32:42.440 --> 00:32:45.319
could start. Second, the property must be in the US.

502
00:32:45.599 --> 00:32:48.200
It doesn't have to be your primary residence. You can

503
00:32:48.240 --> 00:32:52.319
rent out your vacation home in another area. The total

504
00:32:52.400 --> 00:32:55.960
days rented for the year must be fourteen or less

505
00:32:56.200 --> 00:33:00.240
for the property. You've got to document the payments enough

506
00:33:00.240 --> 00:33:02.759
to follow the rules and qualify for this credit. But

507
00:33:02.880 --> 00:33:06.640
you also must properly document the rent payments. When you

508
00:33:06.720 --> 00:33:11.400
rent to your business, the business must issue you in

509
00:33:11.519 --> 00:33:15.079
ninety nine miscellaneous for the amount that was paid. The

510
00:33:15.200 --> 00:33:19.000
rent income must be claimed on your personal tax return

511
00:33:19.519 --> 00:33:24.559
and then exclude it under IRS Section to eight zero

512
00:33:24.880 --> 00:33:30.119
A IRS Section to eight zero A the AUGUSTA rule.

513
00:33:30.519 --> 00:33:35.640
Follow the proper documentation for those payments so that this

514
00:33:35.720 --> 00:33:42.480
comes up as an audit you can successfully navigate the audit. Substantiate, substantiate, substantiate.

515
00:33:42.920 --> 00:33:45.599
In addition to knowing the rules and documenting the payments,

516
00:33:45.640 --> 00:33:49.440
you must also prepare to substantiate the business activity during

517
00:33:49.559 --> 00:33:55.359
the rental days, including meetium minutes, daily agenda, attendee list

518
00:33:55.680 --> 00:33:59.559
supplement with pictures. The more you can substantiate, the better.

519
00:34:00.000 --> 00:34:04.359
It's even more important for a smaller business, where retreats

520
00:34:04.519 --> 00:34:08.199
or board meetings tend to be informal. I tell you

521
00:34:08.239 --> 00:34:12.239
this because you know, hey, Augusta rule doesn't apply to everybody.

522
00:34:12.719 --> 00:34:15.880
You can use it if you can substantiate it. And

523
00:34:15.920 --> 00:34:18.840
then there's many ways that the IRS is going to

524
00:34:19.000 --> 00:34:22.400
disallow this strategy in and audit. If you also get

525
00:34:22.440 --> 00:34:27.159
paid rent for your home office, you'll also violate that

526
00:34:27.239 --> 00:34:31.800
fourteen day rule. So if you're going to try to

527
00:34:31.840 --> 00:34:35.159
overcome this, you've got to need to use an accountable

528
00:34:35.159 --> 00:34:40.800
plan to avoid generating more rental income. Lack of evidence

529
00:34:41.159 --> 00:34:45.440
or deficiency in tracking and documenting rental payments, you can't

530
00:34:45.519 --> 00:34:48.280
use your strategy. If your home is your primary place

531
00:34:48.400 --> 00:34:51.760
of business. You're going to have to set up separate

532
00:34:52.039 --> 00:34:55.440
place for business. If your business is run out of

533
00:34:55.440 --> 00:34:58.039
your home, you're not going to be able to the

534
00:34:58.440 --> 00:35:02.400
Augusta rule. So we've got to remember this Augusta rule

535
00:35:02.519 --> 00:35:06.960
is a complex strategy, many rules and environments. However, the

536
00:35:07.039 --> 00:35:10.079
setup for this tax strategy you really want need to

537
00:35:10.119 --> 00:35:14.239
be done once and then you can execute it every

538
00:35:14.599 --> 00:35:17.840
year you're in business it's a nice way for your

539
00:35:17.880 --> 00:35:24.079
business to save money running conference space, conference rooms, or

540
00:35:24.119 --> 00:35:27.920
other accommodations for company events. So you know the rules

541
00:35:27.960 --> 00:35:31.440
out there, it's available for you to use. Just got

542
00:35:31.440 --> 00:35:35.280
to make sure that you're guiding the a's and crossing

543
00:35:35.519 --> 00:35:41.280
the t's behind these events so that you know that

544
00:35:41.320 --> 00:35:47.119
you're using it correctly for your business and that you've

545
00:35:47.159 --> 00:35:50.920
got it done the right way so that you don't

546
00:35:51.239 --> 00:35:55.239
have problem. You know, being in small business and being

547
00:35:55.280 --> 00:35:58.119
a business owner is complex. It is hard. Knowing all

548
00:35:58.159 --> 00:36:00.880
the rules, knowing all the stuff you've got to follow

549
00:36:01.360 --> 00:36:06.239
makes life deal. Having good service provider, good bookkeeping, great

550
00:36:06.239 --> 00:36:09.800
bookkeeping service, great tax provider is the key to keeping

551
00:36:09.840 --> 00:36:13.800
your business going correctly. It helps you keep a watchful

552
00:36:13.840 --> 00:36:17.280
eye on your business profits and your expenses, your net income.

553
00:36:17.480 --> 00:36:19.719
What am I making? Isn't that about how much money

554
00:36:19.719 --> 00:36:22.079
I have left in my pocket? That's the end goal

555
00:36:22.719 --> 00:36:26.039
is to have more in the bank every year so

556
00:36:26.079 --> 00:36:29.679
that you establish a huge nenis egg to retire and

557
00:36:29.760 --> 00:36:32.920
not have to be in business forever. In doing everything

558
00:36:33.119 --> 00:36:36.280
you know every day, including if you're a W two employee,

559
00:36:36.519 --> 00:36:40.000
it's putting as much money away and saving money and

560
00:36:40.119 --> 00:36:42.199
one of the greatest books I've read out there is

561
00:36:42.199 --> 00:36:44.920
a wealthy barber saving that ten percent right off the

562
00:36:44.960 --> 00:36:48.039
top every year, putting it away. You know, if you're

563
00:36:48.079 --> 00:36:50.880
in business, you know a set of goal. Not necessarily

564
00:36:50.960 --> 00:36:54.519
save ten percent of net income, maybe save ten percent

565
00:36:54.719 --> 00:36:58.559
of gross revenues. Wouldn't that be nice? Establish a goal,

566
00:36:58.960 --> 00:37:02.320
keep a watchful eye and your business' profits expenses. If

567
00:37:02.320 --> 00:37:04.800
you're a trucker, you're your cost per mile? What does

568
00:37:04.840 --> 00:37:07.920
it cost to run your truck? What is the cost

569
00:37:07.960 --> 00:37:11.039
of put that truck on the road every mile that's

570
00:37:11.119 --> 00:37:15.239
out there? You know, doing that cost per mile calculation

571
00:37:15.360 --> 00:37:18.599
from profits and loss that we give you, You should

572
00:37:18.679 --> 00:37:22.199
sit down and do that one calculation for yourself at

573
00:37:22.280 --> 00:37:26.159
least a couple times a year. No that Hey, when

574
00:37:26.159 --> 00:37:28.119
I'm looking at a load, is this load going to

575
00:37:28.440 --> 00:37:32.719
produce net income? Is it going to generate me enough

576
00:37:32.760 --> 00:37:34.719
revenue to cover my cost? Or am I just loasing

577
00:37:34.760 --> 00:37:38.039
money taking this load? Know what the minimum is that's

578
00:37:38.039 --> 00:37:41.119
out there. Truckers get in trouble because they feel like

579
00:37:41.159 --> 00:37:42.639
the truck's got to be on the road no matter

580
00:37:42.760 --> 00:37:46.920
what the revenue is, just to make that payment on

581
00:37:46.960 --> 00:37:50.360
that truck or the payment on the lease and sometimes

582
00:37:50.599 --> 00:37:53.719
it's not generating enough to cover the costs with the

583
00:37:53.760 --> 00:37:57.119
truck on the road. Make proper tax estimates. Hey, that

584
00:37:57.199 --> 00:37:59.880
first estimate is actually coming due for twenty twenty five

585
00:38:00.000 --> 00:38:04.840
April fifteenth, eight days away. Get prepared. Make those estimated

586
00:38:04.880 --> 00:38:09.280
tax payments every quarterly estimate. Now, the IRS is weird.

587
00:38:09.599 --> 00:38:12.599
We all know that your first estimate is due April fifteenth.

588
00:38:12.639 --> 00:38:15.440
Your second estimate, it's not a quarter away, is due

589
00:38:15.760 --> 00:38:20.639
June fifteenth. Then it's September fifteenth, and then it's January fifteenth. Hey,

590
00:38:20.639 --> 00:38:24.159
I don't set the deadlines out there, the IRS does.

591
00:38:24.639 --> 00:38:27.960
So make those quarterly estimists. If you can't make it quarterly,

592
00:38:28.000 --> 00:38:30.920
make it monthly. You know. If you can't do that,

593
00:38:31.039 --> 00:38:34.320
set aside money every month to help pay for taxes

594
00:38:34.360 --> 00:38:38.679
come April fifteenth, Invest that money and invest wisely. You know.

595
00:38:39.199 --> 00:38:43.559
Truckertax tools dot Com our bookkeeping service. What we try

596
00:38:43.599 --> 00:38:48.320
to do is minimize the taxes that you're going to pay.

597
00:38:48.599 --> 00:38:52.199
Maximize you were a profit. Kind of a conflict out there,

598
00:38:52.519 --> 00:38:54.519
but it's one of those conflicts is really good for

599
00:38:54.599 --> 00:38:59.880
you because minimizing taxes is a way to help maximize

600
00:39:00.119 --> 00:39:02.880
your profits. At the end of the day. See, it's

601
00:39:02.920 --> 00:39:07.039
not about how much money gross income did we make,

602
00:39:07.400 --> 00:39:10.000
it's what is our net income, what is our take home?

603
00:39:10.440 --> 00:39:12.480
What did we key at the end of the day,

604
00:39:12.639 --> 00:39:16.400
How much money did we invest, how much money did

605
00:39:16.400 --> 00:39:20.079
we set aside for our future. Maybe it's paying down

606
00:39:20.119 --> 00:39:21.800
the loans a little bit quicker because you're on too

607
00:39:21.840 --> 00:39:24.960
high of an interest rate. Maybe it's actually doing something

608
00:39:25.320 --> 00:39:28.800
people don't do in the trucking industry. And then it

609
00:39:28.960 --> 00:39:33.400
starts saving for retirement. Set up those retirement plans, whether

610
00:39:33.440 --> 00:39:36.280
it's an IRA, whether it's an se people, whether it's

611
00:39:36.280 --> 00:39:39.280
a four or one key do something to save money

612
00:39:39.360 --> 00:39:41.960
in your business, and that starts with going to truck

613
00:39:42.039 --> 00:39:45.079
or tax tools dot com. And these hours go by quick.

614
00:39:45.480 --> 00:39:48.199
We enjoy having you here at tax Talk for You.

615
00:39:48.199 --> 00:39:51.519
Go over to tax Talk for You dot com and subscribe.

616
00:39:51.840 --> 00:39:54.519
Never miss an episode. If you've missed one of our episodes,

617
00:39:54.880 --> 00:39:57.599
track tax Talk for You dot Com has all the

618
00:39:57.639 --> 00:40:00.519
podcasts out there you can catch up. You catch up

619
00:40:00.519 --> 00:40:02.920
to speed on everything that we do and everything we

620
00:40:02.960 --> 00:40:06.039
talk about. Hey, join us every Monday, nine am Eastern

621
00:40:06.039 --> 00:40:09.599
Time right here at tax Talk for You. I'll miss

622
00:40:09.599 --> 00:40:13.480
an episode. The before CUI Radio. We're here you should

623
00:40:13.480 --> 00:40:15.719
be see you next week, God blessed.

624
00:40:16.840 --> 00:40:20.039
Are you an individual or business that wants to understand

625
00:40:20.079 --> 00:40:23.480
taxes and how they affect you. Are you looking for

626
00:40:23.519 --> 00:40:28.960
specific tax advice for self employed business owners and truckers.

627
00:40:29.519 --> 00:40:33.559
Are you behind on taxes and your bookkeeping? Are you

628
00:40:33.679 --> 00:40:36.639
dealing with the irs and ready to have some relief,

629
00:40:37.480 --> 00:40:41.280
Then you need Tax Talk for You, hosted by tax

630
00:40:41.360 --> 00:40:46.280
and trucker expert Barry G. Fowler ea Qunean ten am

631
00:40:46.360 --> 00:40:49.599
the Eastern Time every Monday right here on W four

632
00:40:49.679 --> 00:40:53.199
CY Radio and Talk for TV. Don't forget to check

633
00:40:53.320 --> 00:40:58.159
this and past episodes at tax TALKFORU dot com. See

634
00:40:58.159 --> 00:41:03.159
you next week at W four C why dot com