March 31, 2025

Trucker & Taxes

Trucker & Taxes

Trucking & Taxes how to save money on taxes. What is dedcutible for truckers to save money on taxes. What to dedcut making deductions and expenses pre tax dollars and spendng less after tax to save money. Trucker Per Diems update of rates and...

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Season 2

Trucking & Taxes how to save money on taxes. What is dedcutible for truckers to save money on taxes. What to dedcut making deductions and expenses pre tax dollars and spendng less after tax to save money. Trucker Per Diems update of rates and amounts. Owner Operators Taxes & Bookkeeping by TruckerTaxTools.com IRS probelms solving getting our of debt with the IRS Taxation Solutions Tx Relief

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).

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WEBVTT

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The topics and opinions express in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W four CY

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Radio or it's employees are affiliates. Any questions or comments

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should be directed to those show hosts. Thank you for

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choosing W FOURCY Radio.

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Barry G.

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Fouler EA brings you tax talk for you right here

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on W four CY Radio and Talk Forward TV. As

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an enrolled agent and a national leader in tax resolution

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as well as trucker bookkeeping and tax planning. With over

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thirty years of experience, Barry will break down taxes, bookkeeping,

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tax planning, and tax relief for individuals and businesses just

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like you. So let's have some tax talk for you

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with your hosts.

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Barry G. Foul Hey, welcome in. Good morning man. It's

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great to be here and another great day, and today

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we're talking about trucking and taxes. Truck or tax tools

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started from need that came out with truckers having major

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tax problems with the I R S debts that were

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owed that they couldn't pay. They needed to find a

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way out of it, and Taxation Solutions was satisfying that

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getting truckers out of tax problems. And from there we

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had a bunch of truckers asking us can we do

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our bookkeeping? Do our taxes? You caught us up and

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can you just keep us current? You keep us up

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to dat in our taxes. Yeah. Absolutely. We've been a

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long time supporter of Owner Operator Independent Drivers Association Old IDEA,

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and with Old IDEA, they have a wonderful foundation that

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there's a lot of work to help truckers out and

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especially helping new truckers own our operators that are looking

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to get out on their own. They have some great

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educational videos in the foundation. We've done a couple with

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them as well. And then every year they have been

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doing a seminar called Truck to Success, which is a

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great seminar is put on in usually October. This year

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it'll be October eighteenth through the twenty third, and it's

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gonna be right there in Blue Springs, Missouri, just down

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the street from oid's headquarters. And as usual, I will

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be there speaking about trucker taxes, trucker bookkeeping, business entity, lease, purchase,

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all these wonderful things that every trucker should know about.

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In today's show, we're going to be talking right to

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the truckers and helping them to save money on taxes.

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And that is extremely important because that is a definite

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way keeping more money in your pocket and giving less

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to the government. And that is savings. And now one

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of the good things is we write for Landline Magazine.

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I have some great articles. Two of them that I

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really really liked was July of twenty four the Trucking

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in Taxes and Landline Magazine how to retire as an

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owner operator. You know amazing. When I talk to a

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lot of owner operators, they say, retire. I'm retiring right

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here in this truck. I'm not ever getting out of

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it because I don't have the ability to. We start

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working with our clients to help them build a foundation

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to be able to retire and not have to drive

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that truck forever. I know a lot of them want to,

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but a lot of them also want to get out

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of the truck at some point and be able to

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relax and enjoy it with their spouse significant other. The

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other one in Trucking in Taxes, was written in August

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September issue of Landline magazine. What is an escort? See,

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we get a lot of people that have come to

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us and maybe they've thought they set up an escort

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and they didn't didn't know what the advantages of doing

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an escort. Nobody's ever really talked to them and explained

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to them the differences between a single member LLC, multi

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member LLC, es cort or even an ink. I mean,

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you go and you set up your company Dale's Trucking, Inc.

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And you didn't finish the setup and you're not an escort,

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but you're actually a C corp. Now you're paying double taxation.

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There's a lot of things that do happen out here,

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and some of this stuff is what we educate at

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Truck to Success. And again, if you're a W two

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driver or maybe you've been an owner operator and you

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want to learn more and be more educated to get

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your own authority. Truck to Success just an eye there.

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But we have a lot of people from Old Ida

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that come out and talk about everything that you need

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as an owner operator going out and running your own truck,

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and you know, those are the kind of things that

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you need when you're moving from W two or maybe

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learning wanting to grow and have multiple trucks. You know,

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one of the medical requirements, you know, doot all these

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fun things, and you know Old Ida's foundation is there

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and would be able to help you and guide you

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along the way. Now, when I go, I talk you

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know about the taxes and the tax code along with

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all the other stuff that they asked me to come

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in and talk about. But one of the things, you know,

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when we talk about tax code, we go way back

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to the beginning and you know, back to like nineteen thirteen,

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and that federal tax code was about say four hundred

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pages at the most. So in the first twenty six

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years of the tax code it went from the four

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hundred pages to five hundred and four pages. Now, you

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know that was probably a lot back in the day.

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You imagine typing that out on a typewriter, then having

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to copy it and produce it so people would understand

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what the tax code was. Now would just imagine what

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it is today. It's one hundred and eighty seven times

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longer than it was just a century ago. We're currently

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and this is probably more than seventy four thousand pages currently.

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Do you imagine trying to understand that tax code. That's

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what you have us for at truportax tools dot Com

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is to be able to understand it and find you

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every deduction that is possible and allowed by law for

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you to save money on taxes. So you don't need

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to know all that as matter of fact. What you

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do need to know is how long is it going

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to take you to read the tax code? Didn't say

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understand it? Read it roughly fourteen weeks and that's probably

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speed reading because I know you're gonna fall asleep many

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many times, so maybe double that or triple that. You

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can't go to sleep at night. Pick up the tax

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code and start reading it. Have fun. You'll probably be

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able to get a lot of sleep reading the tax coat. Now,

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do you know what is the biggest mistake you can

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make for taxes? I do failing man, that's the biggest mistake.

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Not planning. You know, one of my favorite quotes that

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we talk about at the Truck to Success seminar is

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there is nothing wrong with the strategy to avoid the

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payment of taxes. The Internal Revenue Code doesn't prevent that.

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That quote is from the former Chief Justice of the

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Supreme Court, William rent Quest, so take his words to heart.

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Plan matter of fact, when I look at the tax code,

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the tax code is our planning guide to avoid as

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much in taxes as possible. And a plan becomes your

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key to your financial defense. It guarantees results to your

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bottom line, you know, because one of the things we

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always look at is how do you improve the bottom line?

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And if taxes such as your federal and state income taxes,

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your self employment taxes are going to amount to an

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unguidly percentage just self employment taxes, you know, fifteen point

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three percent right off the tip, and then you add

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your federal and state income taxes on top of that. Now,

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can you just imagine you're in a twenty two percent

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tax bracket, You've already paid fifteen point three percent as well,

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let's thirty seven percent. Then add your state income tax

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whatever state you happen to be in. If you happen

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to be in the Great State of Taxes or Florida

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and the others that don't have any income tax, hey

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you don't have to add that to it. But if

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you're out in California, and you Jersey, Illinois, you're gonna

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put Michigan. You're gonna end up paying additional tax on

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top of that. Now that affects your bottom line. Gosh

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you money. If you're not planning and don't have a

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plan on how to save money on taxes, I mean,

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you think about it. So you netted one hundred thousand

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dollars and you've got to pay out thirty seven percent

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of that, that's thirty seven thousand dollars. You're left with

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sixty three. But if you can plan and you can

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reduce what you're gonna get tax on, then you've put

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money in your pocket instead of Uncle Sam's pocket or

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your stage pocket. You know, that's what you're always looking

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to do, is a plan to reduce the taxes you're

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going to pay, whether it be through your entity, whether

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it be through other strategies that we'll talk about, whether

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it be through bookkeeping and making sure you've got all

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the deductions. We're going to talk more about the bookkeeping

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and deductions right after this.

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We have only scratched the surface of today's show. Please

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stand by as Barry G. Fowler will be right back

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with tax talk for you. If you owe the IRS

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or are going through an IRS audit, don't go at

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it alone. Call Taxation Solutions tax Relief at eight eight

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eight nine three zero one zero one six. We are

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your solution for IRS debts, audits, back taxes, garnishments, leans

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and levees. Whether you're an individual or business, you need

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a solution and a strong, aggressive tax resolution. Don't let

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the IRS walk all over you. Stop the IRS now

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call eight eight eight nine three zero one zero one

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six or go to Taxationsolutions dot net now for are

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no obligation with consultation. Let's get back to tax stock

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for you with more tax stock once again. Here's your host,

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Barry G. Ballo.

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Hey, welcome back. You know talking about saving money on

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taxes and you know getting all the tax deductions and everything.

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And one of the reasons is really important, and you

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know going along with your business entities and using them

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as a tax strategy is because of the self employment taxes.

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Let's be honest. You know at fifteen point three percent

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right off the top of what your net income is

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on Schedule C could be very costly. I mean you

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think about this, You're paying both halves when you're self employed,

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So you pay your half, and you pay what you

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were a W two employee the employers have and so

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that's why we get to that fifteen point three percent.

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It's twelve point four percent for Social Security and two

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point nine percent for Medicare. Now where does that stop.

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You know, it doesn't just stop at fifty thousand or

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one hundred thousand. As matter of fact, that twelve point

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four percent for Social Security is going to go all

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the way up to one hundred and seventy four thousand,

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nine hundred dollars before you don't pay that anymore. And

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you know, then you add to that the two point

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nine percent for Medicare, and there's not a wage base

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limit on the Medicare tax, add another two point nine

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for all the way up to one hundred and seventy

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four nine and so if you're making two hundred or

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three hundred thousand dollars, whether you're in the trucking, visitors

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or self employed, that becomes really expensive. Now, remember, hey,

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we're talking about truckers because truckers are very valuable to

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our economy and getting the goods that we need and

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even being able to provide services like we provide because

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you know, to be honest. The equipment we use, it

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was probably trucked in to one of the stores that

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we got it from. You know, So truckers are providing

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us food, our clothing, are all goods that we use.

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And you know, I'm always thankful for the truckers. I'm

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always thankful for what they do here for us and

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everybody in the country. They do provide a good service.

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And you're a way up from home a ton of time.

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I mean, we all enjoy time with our family. Now

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you imagine being a trucker and being on the road

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and not having the time, and then coming home and

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having to do bookkeeping or figure out your taxes. And

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that's what Trucker Tax Tools is for. So give us

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a call at Trucker tax Tools, get a free consultation

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eight seven seven nine nine six two four seven seven

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again eight seven seven nine ninety six two four seven seven,

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or go to Trucker tax tools dot com. We have

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great specials for truckers right now for bookkeeping as so

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as twenty five dollars. Beat it anywhere to go to

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Trucker tax tools dot com. You know, using strategies to

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figure out what's going to be the best using bookkeeping

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to get all the deductions that you should be having,

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because not only does it reduce your net income, but

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it reduces what you're going to be paying solid Security,

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Medicare for, and income taxes. And what we try to

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show you and through bookkeeping, is taking money that you

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were spending after tax and making it pre tax dollars.

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Because when you spend money pre tax, it's a deduction

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before Social Security, Medicare, before federal income tax. If you're

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spending money after tax, it is after you've paid solid

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Security on it, after you've paid your Medicare tax on it,

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after you've paid your income tax on it. And so

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basically you lose. Every time you spend after tax dollars

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that could have been free tax dollars. I mean, think

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about that. Think about that. You every time you spend

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after tax dollars, it could have been free tax dollars.

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I mean, that is so true. And that's why we

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talk about tax planning. You know, we tell people to

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read read your contracts, read your agreements before you sign them.

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We fortunately read the tax code and make changes to

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our plans and make the plans that work for you. You know,

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it's interesting when you read tax plans because I think

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politicians are all lawyers or have some kind of legal

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degree or something out there, because they're not written for

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every day Americans. They're written to benefits somebody somewhere all

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the time. Some politicians have never met a tax they

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don't like they feel like it's their money once they

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get it. You saw what Dozer's been doing in USK

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and Trump and all these guys have been fighting all

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this money that you know, has spent for ridiculous things

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and stupid things, and you know, sometimes you've got to

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put some sense to it. You know, we look at

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some of these tax codes and we read some of

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these things, and we go some politicians probably have never

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read what they voted for, you know, some underlying reddit

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and said, yeah, that looks good. It's not necessarily good.

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You know, everyone is also good when the tax is

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on someone else. And then when they reach that level,

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they complain. Most celebrities are great at discussing taxes and

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winning increases, but they don't really want to pay more themselves.

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That's why they do planning. If they really wanted to

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pay more, they could just write a check and not

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increase taxes. They could actually just not take the deductions

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and pay the extra tax. But they all have a

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tax plan. They all have somebody helping them plan for

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saving money on taxes. And that's what you should be

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doing as well, so that you're not losing by spending

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money that's after tax that could have been free tax.

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Now we have dressed before business entities and how to

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use entities, UH and taxes. Go back and listen to

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one of our podcasts at tax Talk for You. You

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can find the one on business entities as Corpse multi

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Member ll CS and UH. You know, make sure you

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hit subscribe so you never miss an episode of Tax

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Talk for You. You know, some of the reasons people

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have given me that they don't want to do tax

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planning is their paranoid about audits, paranoid about the I

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R S. So you know, don't need to be paranoid

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about take the deductions that are right for the yours

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that is going to save you the money, so that

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you are using every deduction possible. I mean, when you

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look at audit rates, you know, if you're making less

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than you know, twenty five thousand, it's zero point four

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percent twenty five thousand to two hundred thousand it's point

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one seven. Two hundred thousand to five hundred thousand, it's

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point one seven. You start moving into five hundred thousand

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to million, and you're awo point five three million to

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five million, you're one percent or five million and more,

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you're at two point three five percent. You know, but

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if you're getting earned income credit, you actually have an

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audit rate of about zero point seven to seven. So

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you know, got a paranoia should a thing that triggers

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you for taking every legal production out by law. You know,

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when we look at the examinations and compliance activities of

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the IRS, you know, very small percentage is field examinations.

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A lot of them are correspondence examinations, much more of

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them are automatic under reporter. So you didn't report items

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that you should have had maybe ten ninety nine, maybe

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W two or hey, you know, the one thing they're

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looking at now is maybe you've had a little side

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business out there and you've got a ten nine K

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which was from merchant transactions, and they're now looking at

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those and saying, hey, you didn't report a business out there.

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You get people that didn't file, you're going to get

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a substitute for a return and then math error notices. No,

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I don't know how those are possible if everybody's using

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computer software. You know, maybe you transpose a number, but

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I would assume that would have went into automatic underreporter

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or over reporter. But sometimes math if you're filling it

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out by hand and still sending it in, Yeah, maybe

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it could. But those are the things that you know,

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we look out for, you know, So what should you

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be doing right now? What you should be doing right

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now is tax planning, bookkeeping, getting looking at every transaction

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that you do so you can report it correctly on

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your schedule see or on your business return, whichever the

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case may be. Do you want to go through and

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find every little deduction you can have in your trucking business?

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Why pay something after tax and you can pay it

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pre tax and save money? Not just so security medicare

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Federal income teach. Now we're going to talk about deductions,

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those bookieping deductions that you can look for. Right after this, we.

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Have only scratched the surface of today's show. Please stand

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00:20:27.519 --> 00:20:30.599
by as Barry Chief Fowler will be right back with

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tax talk for you. As an owner operator, you already

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00:20:37.039 --> 00:20:40.480
spend too much time away from your family, Trucker Tax

335
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Tools handles all your bookkeeping and taxes. No matter what

336
00:20:43.920 --> 00:20:47.039
level trucker you are. Life on the road can be taxing,

337
00:20:47.480 --> 00:20:50.480
but that doesn't mean that your wallet or time with

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your family should suffer. Trucker Tax Tools makes your life

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00:20:54.599 --> 00:20:58.240
run smoothly. Now the Trucker tax Tools dot Com for

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00:20:58.359 --> 00:21:01.359
a free guide that will give you the tools to

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never worry about your taxes again. Call Trucker Tax Tools

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eight seven seven, nine six six two four seven seven

343
00:21:10.480 --> 00:21:13.599
or go to Trucker tax Tools dot Com now and

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let the experts keep you trucking.

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Let's get back.

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To tax stock for you with more tax stock once again,

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here's your host, Barry G.

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Fallon. Hey, welcome back and talking about taxes, uh, bookkeeping,

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Trucker taxes, small business taxes. Basically, what we're trying to

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do is help people plan, plan to save money on

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their taxes, you know. And what do we talk about

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is you lose every time you spend after tax dollars

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that could have been retaxed and keep into that. We

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talk about some of the reasons people get in trouble

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and costs themselves money. But first, hey, Kelsey, great question

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ten forty Sr. Replaced the ten forty easy or the

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ten forty. A ten forty SR is the senior's return,

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So basically it's somebody that's that's older, so it comes

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out as an SR. Just another version of that wonderful

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little postcard that you know they said we were going

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to have and you know we don't. I mean, if

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they would have had their way of postcard, it would

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have said how much did you make? Send it in?

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That would have been the quickest and easiest postcard and

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then we'll send you back what you think you need

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to live on. That's our joke for the day. But anyway,

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you know, we're talking about things that cost truckers money,

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and we see this every day, and we're going to

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talk about all the deductions that you can get. But

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what costs you money is bad or no bookkeeping. They

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seem deductible business expenses, incomplete bookiep not reading your settlement statements,

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bookkeeping that is done by those that don't know anything

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about trucking, or bookkeeping done by those who only care

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about their own bottom line and not yours. Are not

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finding a way to save you money. We tell you

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to keep it simple. Save every receipt, even if somebody

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else is doing bookkeeping. Set up a folder, open a

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separate checking account that's just for business. Use a separate

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credit card just for business. Save you logbooks, you copy

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of your eeled, get a notebook to carry with you

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and put it with your receipt envelope. You know loans,

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Read your loan agreements. Make sure you know what you're

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signing equipment purchases. Save that purchase order. Make sure that

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when your taxes are done, they're recording the full value

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of that trug. Save your records. You know, we're talking

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about keeping it simple, and you know you can use

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a service like Trucker tax Tools. Go to truck or

388
00:23:50.640 --> 00:23:53.559
tax tools dot com. Got some great low rates for

389
00:23:53.599 --> 00:23:57.519
you for bookkeeping. I'd love to have you join us

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and be a member of our group of truckers that

391
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are out there. But you know, when you're sitting down

392
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and looking at things that may not seem significant. But again,

393
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don't get the deduction the right way. You're spending after

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tax dollars. It could have been free tax dollars. I mean,

395
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we've seen people miss really simple items like your association dues.

396
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Those are a business expense. The fees you pay on

397
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your bank account, your cell phone are internet plans. Yeah,

398
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we've got to look at on the cell phones and

399
00:24:32.720 --> 00:24:35.720
what's business and what's personal. But once you get past

400
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that hurdle, you can take a percentage of your cell

401
00:24:39.640 --> 00:24:43.559
phone plan or your internet plan to apply it to

402
00:24:43.599 --> 00:24:46.960
the business. Hey, you purchase a coffee pot. Doesn't have

403
00:24:47.039 --> 00:24:48.720
to be an expensive one. You know, maybe it was

404
00:24:48.720 --> 00:24:52.279
fifty dollars or a hundred dollars. Well, fifteen percent on

405
00:24:52.279 --> 00:24:55.839
one hundred dollars is still fifteen dollars. That's money in

406
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your pocket. So take the tax deduction. Certifications you pay

407
00:25:00.359 --> 00:25:03.960
to get certified. Maybe has met certification. Make sure you're

408
00:25:04.119 --> 00:25:07.480
taking that deduction. Hey, you bought a calculator, That is

409
00:25:07.519 --> 00:25:11.039
a deduction. Cleaning supplies, you know, you're using them in

410
00:25:11.079 --> 00:25:14.640
the truck. You're using to clean up after yourself. You're

411
00:25:14.680 --> 00:25:17.599
using them to clean keep the truck interior exterior clean.

412
00:25:18.119 --> 00:25:21.799
Those are deduction. Chains don't seem like a big deal,

413
00:25:22.240 --> 00:25:25.519
but they are. You had to have chains, and your

414
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truck's required to have them. It's a business expense. Envelopes,

415
00:25:31.039 --> 00:25:34.680
something as simple as envelopes or staples. Those are all

416
00:25:35.240 --> 00:25:40.079
deductible items for you in your business. Now you're paying

417
00:25:40.160 --> 00:25:45.200
fees for your tax services, your bookkeeping services, tax planning,

418
00:25:45.680 --> 00:25:51.039
any of those are all tax deductible expenses for you

419
00:25:51.519 --> 00:25:56.039
and your business. Take the deduction. It saves you money.

420
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You know, you have a license, your business license, cdo license,

421
00:26:01.240 --> 00:26:05.720
goss of that is deductible, a fire extinguisher, and I

422
00:26:05.720 --> 00:26:08.519
know this is this is kind of fun. One ice scraper.

423
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You know, any excise taxes, fuel tax, heavy highway tax,

424
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all these are deductible. Hey, if you're using a GPS

425
00:26:17.240 --> 00:26:20.160
service and you're paying for it, you know, we've seen

426
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a lot of people that you know, just because they're

427
00:26:23.039 --> 00:26:25.680
using their phone and it ends up being charged on

428
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a different credit card or a different bank account, their

429
00:26:29.960 --> 00:26:33.599
subscription to the apps that they use for their business.

430
00:26:34.079 --> 00:26:38.200
They miss the deductions, find those deductions, use those you know.

431
00:26:38.759 --> 00:26:41.799
What we kind of do is look at our client's

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00:26:41.799 --> 00:26:46.599
bookkeeping and say, hey, when we run this tax minimizer,

433
00:26:47.000 --> 00:26:49.559
it looks like you're missing this or you're missing that.

434
00:26:50.039 --> 00:26:53.319
You have these expenses somewhere else that you're paying for

435
00:26:53.359 --> 00:26:55.920
maybe out of a personal account and you didn't run

436
00:26:56.039 --> 00:26:59.200
through the business. Maybe you bought a road outless and

437
00:26:59.279 --> 00:27:02.559
we always joke, because you know, GPS doesn't work everywhere,

438
00:27:02.839 --> 00:27:05.519
you know, and my truck, I've got a road out lists.

439
00:27:06.000 --> 00:27:07.960
If we were out in the middle of somewhere where

440
00:27:08.000 --> 00:27:11.640
we lost GPS service and we don't know the highways

441
00:27:11.640 --> 00:27:13.799
we're on or whatever, we have a road out list

442
00:27:13.880 --> 00:27:15.359
we could pick up and we can look at it

443
00:27:15.359 --> 00:27:17.920
and figure out where we're at and where we need

444
00:27:17.960 --> 00:27:20.799
to go. And every trucker I've ever met has a

445
00:27:20.880 --> 00:27:24.519
road outst did you deduct the expense? Should have? Shouldn't

446
00:27:24.559 --> 00:27:27.039
have missed that? You know? Of course you know a

447
00:27:27.119 --> 00:27:30.799
real simple one fuel and your truck operating expenses, repairs

448
00:27:30.799 --> 00:27:34.559
and maintenance. You know, the fuel that you're putting in there.

449
00:27:34.880 --> 00:27:38.279
Maybe you have propane to run a stove as well,

450
00:27:38.400 --> 00:27:42.599
or other items that's out there. The depth that you're buying.

451
00:27:42.880 --> 00:27:46.799
These are all somewhat easy inductions that you should know

452
00:27:46.839 --> 00:27:51.079
about because you're putting it into your truck. But sometimes

453
00:27:51.160 --> 00:27:54.759
repairs don't know this. I have no clue what death is,

454
00:27:55.240 --> 00:28:00.480
and you know, so they miss that refer fuel paper. Hey,

455
00:28:00.480 --> 00:28:03.640
maybe you have to print out things invoices. You know,

456
00:28:03.720 --> 00:28:11.599
your printer, your pens and again envelopes and all your insurance. However,

457
00:28:12.000 --> 00:28:15.680
life insurance is not deductible. Health insurance is a whole

458
00:28:15.680 --> 00:28:18.799
different topic. So you know, you've got to sit down

459
00:28:18.880 --> 00:28:23.279
and look at health insurance. For self aployed you're not

460
00:28:23.319 --> 00:28:25.799
get to deduct it in your schedule CEE, you're going

461
00:28:25.839 --> 00:28:29.160
to deduct it self employed health insurance, so it's not

462
00:28:29.240 --> 00:28:34.319
going to come off before Social Security and medicare real

463
00:28:34.359 --> 00:28:37.039
big items that we see missed all the time is

464
00:28:37.200 --> 00:28:39.880
interest expense. I'm making a payment on my truck and

465
00:28:39.880 --> 00:28:42.599
they deduct the payment. They don't deduct the interest. They

466
00:28:42.599 --> 00:28:46.000
shouldn't be deducting the payment either, because your payment is

467
00:28:46.079 --> 00:28:50.880
part principle, part interest, and only interest is deductible. Now,

468
00:28:50.880 --> 00:28:53.799
you may be on an operating lease and then the

469
00:28:53.839 --> 00:28:56.599
whole lease is deductible, but if you're on a capital lease,

470
00:28:57.119 --> 00:29:01.160
then you're only going to get the interest and depreciation

471
00:29:01.480 --> 00:29:06.440
on the truck. Let somebody put mileage in on your tractor,

472
00:29:06.960 --> 00:29:12.200
because you don't take mileage, you take actual expenses and depreciation,

473
00:29:12.759 --> 00:29:15.680
because that is the right way of doing it and

474
00:29:15.680 --> 00:29:17.880
what you're supposed to be doing. You know, we talk

475
00:29:17.960 --> 00:29:21.240
about main insant repairs. Main inswer repairs can be very

476
00:29:21.279 --> 00:29:25.039
sophisticated because you've really got to look down and analyze

477
00:29:25.599 --> 00:29:31.440
those kind of expenses. You know, simple expenses like all changes,

478
00:29:32.720 --> 00:29:37.920
minor repairs. Those are really get into major repairs such

479
00:29:37.920 --> 00:29:43.559
as an engine replacement, transmission replacement. These become capitalized expenses,

480
00:29:44.160 --> 00:29:47.440
so they're going to be capitalized and depreciated over the

481
00:29:47.559 --> 00:29:51.359
useful life of truck and the repair. So you've really

482
00:29:51.359 --> 00:29:56.359
got to break these repairs down into what is ordinary,

483
00:29:56.920 --> 00:30:00.640
what is improvement of the vehicle, And those are the

484
00:30:00.640 --> 00:30:03.279
things that you look at as we're going through and

485
00:30:03.319 --> 00:30:06.799
doing the bookkeeping and the taxes for our clients so

486
00:30:06.799 --> 00:30:09.799
that we make sure we got everything right. We've got

487
00:30:09.839 --> 00:30:13.359
more expenses coming up that you should be looking for

488
00:30:13.720 --> 00:30:16.880
as an owner operator, even as a small business owner.

489
00:30:17.279 --> 00:30:19.759
Got to find these expenses and make sure you move

490
00:30:19.799 --> 00:30:22.839
them from after tax to pre tax dollars. We can

491
00:30:23.119 --> 00:30:24.160
continue right after this.

492
00:30:25.559 --> 00:30:29.240
We have only scratched the surface of today's show. Please

493
00:30:29.279 --> 00:30:32.519
stand by as Barry G. Fowler will be right back

494
00:30:32.599 --> 00:30:33.480
with tax.

495
00:30:33.319 --> 00:30:34.200
Stock for you.

496
00:30:36.759 --> 00:30:40.119
As an owner operator. You already spend too much time

497
00:30:40.160 --> 00:30:44.319
away from your family. Stop spending time doing paperwork. Go

498
00:30:44.440 --> 00:30:48.720
to Trucker tax tools dot com. A solution filled specifically

499
00:30:48.759 --> 00:30:52.319
for truckers. Trucker tax Tools dot Com makes your life

500
00:30:52.720 --> 00:30:58.480
run smoothly. Let's get back to tax Stock for You

501
00:30:58.559 --> 00:31:01.119
with more tax stock once again.

502
00:31:01.599 --> 00:31:03.519
Here's your host, Barry G.

503
00:31:03.759 --> 00:31:06.319
Fallum.

504
00:31:06.440 --> 00:31:11.400
Hey, welcome back. We're talking about truckers and taxes saving

505
00:31:11.480 --> 00:31:15.279
you money right here on tax Talk for You. Don't

506
00:31:15.319 --> 00:31:18.119
miss a single episode. Go to tax talkfor you dot

507
00:31:18.160 --> 00:31:23.680
com and subscribe to our shows over there and get

508
00:31:23.680 --> 00:31:28.000
reminded of every show that's coming up so that we

509
00:31:28.039 --> 00:31:31.480
can help save you money on taxes every way possible. Hey,

510
00:31:31.480 --> 00:31:33.960
if you're a trucker, maybe you're a W two trucker

511
00:31:33.960 --> 00:31:36.319
and you're just thinking about getting out there on your own,

512
00:31:36.400 --> 00:31:38.480
or maybe you've been an owner operator and you're thinking

513
00:31:38.480 --> 00:31:41.960
about expanding. One of the great seminars I tell everybody

514
00:31:41.960 --> 00:31:46.200
to go to is truck to Success by OIDA and

515
00:31:46.279 --> 00:31:50.200
the Foundation. It's coming up October eighteenth through the twenty

516
00:31:50.279 --> 00:31:55.000
third in Blue Springs, Missouri. They also not only in person,

517
00:31:55.119 --> 00:31:59.240
but they also have it available for you online via

518
00:31:59.400 --> 00:32:02.200
zoom and make it up there to attend. And I

519
00:32:02.200 --> 00:32:04.240
always tell people to come up in a ten I'm there.

520
00:32:04.720 --> 00:32:08.519
I go up for those those days and the reason

521
00:32:08.599 --> 00:32:11.759
I'm there is to be able to sit down with you,

522
00:32:12.319 --> 00:32:16.240
the owner operator in the evenings and you know, be

523
00:32:16.279 --> 00:32:19.799
able to talk and we sit and maybe watch baseball

524
00:32:19.799 --> 00:32:23.359
playoffs and shoot the breeze and talk about trucking and

525
00:32:23.559 --> 00:32:26.799
talk about taxes, talk about bookkeeping and man, you know,

526
00:32:27.279 --> 00:32:31.200
the questions we get while we're there is so great

527
00:32:31.599 --> 00:32:35.799
that it keeps me coming back and speaking and tuning

528
00:32:35.799 --> 00:32:39.680
my time to oh Ida and the foundation to be

529
00:32:39.839 --> 00:32:43.240
there to help you the trucker get off on the

530
00:32:43.319 --> 00:32:46.640
right foot. And maybe you've been in the trucking business

531
00:32:46.680 --> 00:32:50.440
and you're looking to expand we met some really good

532
00:32:50.480 --> 00:32:52.599
friends out there that have been clients of ours for

533
00:32:52.640 --> 00:32:54.880
a very long time, and we continue to bring more

534
00:32:54.960 --> 00:32:58.640
on every single year at Trust to Success. And you know,

535
00:32:58.680 --> 00:33:01.720
some of them don't they want to be owner operator.

536
00:33:01.720 --> 00:33:03.799
They would rather be a W two driver. Hit that's great.

537
00:33:04.200 --> 00:33:07.559
That was still a valuable learning lesson by coming to

538
00:33:08.079 --> 00:33:12.960
Truck to Success myself and the people with O I

539
00:33:13.039 --> 00:33:16.480
D A Foundation and O I DA that are there

540
00:33:16.640 --> 00:33:21.400
speaking are the experts in this business. And you try

541
00:33:21.440 --> 00:33:24.039
to bring as much information to you as possible to

542
00:33:24.039 --> 00:33:28.000
get you started go and continue going down the right path. Again,

543
00:33:28.039 --> 00:33:31.359
we were talking about expenses. You know, we're always looking

544
00:33:31.359 --> 00:33:34.160
for the little things like, hey, the do team had

545
00:33:34.160 --> 00:33:38.359
a cool exams deductible safety gear you're buying for the truck,

546
00:33:38.480 --> 00:33:41.640
whether it's safety shoes, whatever, it may be the best.

547
00:33:41.839 --> 00:33:46.400
These are all deductible things. Your satellite radio, even satellite

548
00:33:46.759 --> 00:33:52.440
TV subscriptions, those are deductible. Most subscriptions that you use

549
00:33:52.960 --> 00:33:57.559
in the truck apps or whatever are deductible. All your

550
00:33:57.599 --> 00:34:01.000
tolls and your parking. A truck parking is a big

551
00:34:01.119 --> 00:34:04.640
deal these days. We're working with a couple of truck

552
00:34:04.680 --> 00:34:08.840
parking lots to get affiliated with us and them so

553
00:34:08.880 --> 00:34:12.760
that we can help bring in finding more places to

554
00:34:12.800 --> 00:34:14.360
be able to park while you're out there on the

555
00:34:14.440 --> 00:34:17.960
road that you know, we'll get you into a safe area.

556
00:34:18.960 --> 00:34:22.599
But that's a whole other big discussion is truck parking.

557
00:34:22.760 --> 00:34:25.039
I know oh Idea has been fighting for more and

558
00:34:25.119 --> 00:34:30.519
more truck parking nationwide, in fighting with Congress to support truckers.

559
00:34:31.159 --> 00:34:34.840
The tools you use, where there's tools for repairing the truck,

560
00:34:34.920 --> 00:34:37.760
tools while you're on the road, these are all deductible

561
00:34:37.920 --> 00:34:40.559
travel expenses. Hey, sometimes you break down and you got

562
00:34:40.599 --> 00:34:43.480
to fly back sometimes maybe you're going to go have

563
00:34:43.519 --> 00:34:51.480
a corporate meeting. Hey, these travel expenses are deductible. Uniforms, education, hostage,

564
00:34:51.880 --> 00:34:57.400
and scale fees are all deductible. What you're really looking

565
00:34:57.440 --> 00:35:02.119
for is ordinary expense with the i R says is

566
00:35:02.320 --> 00:35:06.840
ordinary and necessary or required in the operation of your truck.

567
00:35:07.440 --> 00:35:12.159
So you know that is things that they're looking for.

568
00:35:12.360 --> 00:35:14.440
And we promise to talk a little bit more about

569
00:35:14.920 --> 00:35:20.920
maintenance and what is improvement, betterment of the restores the unit,

570
00:35:21.159 --> 00:35:24.760
adapts the unit to a new or different use. These

571
00:35:24.760 --> 00:35:32.239
are all considered improvements capitalized costs of reproving your tractor truck.

572
00:35:32.599 --> 00:35:36.400
You know, there are some diminished safe harbor rules and

573
00:35:36.440 --> 00:35:39.719
everything else out there that we look at to allow

574
00:35:39.760 --> 00:35:42.800
you to deduct more in the current year without having

575
00:35:42.800 --> 00:35:45.840
a due depreciation on those things, without having to capitalize them.

576
00:35:46.079 --> 00:35:48.639
You know, you know, you want to make sure that

577
00:35:48.679 --> 00:35:53.559
whoever you're using, you know you are finding every deduction

578
00:35:53.719 --> 00:35:57.360
in ways to be able to deduct those expenses and

579
00:35:57.440 --> 00:36:01.559
keep being capitalized, including going through and breaking down maybe

580
00:36:01.599 --> 00:36:05.360
what major repairs were done and what is not considered

581
00:36:05.400 --> 00:36:07.199
a major repair if you had it all done at

582
00:36:07.199 --> 00:36:10.559
the same time. The things that we see that are

583
00:36:10.599 --> 00:36:13.960
most overlooked. You know, we went through all these deductions,

584
00:36:14.239 --> 00:36:17.119
but a lot of them are personal supplies. Now, not

585
00:36:17.239 --> 00:36:21.039
all personal supplies are considered tax deductible, and in order

586
00:36:21.119 --> 00:36:24.599
for a personal supply to be considered tax deductible, they

587
00:36:24.639 --> 00:36:28.039
have to be ordinary and necessary for operating your business.

588
00:36:28.119 --> 00:36:33.199
And a few examples might be like bumps, gloves, hotel dudes, showers.

589
00:36:33.639 --> 00:36:36.880
You know, those are the things that we've got to

590
00:36:36.920 --> 00:36:40.679
look at and make sure that you're getting those seductions.

591
00:36:41.079 --> 00:36:44.360
Other things and communications like CB radios or a cell

592
00:36:44.400 --> 00:36:48.199
phone or the internet, or radio or even phone cards

593
00:36:48.239 --> 00:36:51.159
if you don't have a cell phone and you're calling home.

594
00:36:51.400 --> 00:36:54.920
Phone cards aren't as prevalent anymore out there because most

595
00:36:54.920 --> 00:36:57.039
of everybody's got a cell phone and they can use

596
00:36:57.079 --> 00:37:00.199
them anywhere. You know, what you do got to keep

597
00:37:00.239 --> 00:37:04.280
in mind with communication and these kind of devices is

598
00:37:04.320 --> 00:37:06.280
they need to be strictly used for business or they're

599
00:37:06.280 --> 00:37:08.679
not one hundred percent deductible. So like a cell phone,

600
00:37:08.679 --> 00:37:11.360
you might have to identify how much of the cell

601
00:37:11.360 --> 00:37:13.800
phone for business and how much of it you use

602
00:37:13.880 --> 00:37:17.159
for personal. And hey, if your wife works in the

603
00:37:17.159 --> 00:37:19.559
business with you, or your husband works in the business

604
00:37:19.599 --> 00:37:22.639
with you. You know, hard to say what's business and

605
00:37:22.679 --> 00:37:26.079
what's not business, because I'm pretty sure you sit down

606
00:37:26.239 --> 00:37:30.280
and talk all the time with your significant other that's

607
00:37:30.320 --> 00:37:34.239
helping you in the business. Another thing that's missed is

608
00:37:35.960 --> 00:37:38.559
that talk about travel meals on the road. We're talking

609
00:37:38.599 --> 00:37:45.559
about modified business meals with clients, prospects, referral sources, business colleagues,

610
00:37:45.920 --> 00:37:50.599
your significant other, husband, wife, whatever it may be. Sorry

611
00:37:50.639 --> 00:37:55.920
about that. These are fifty percent deductible, and so you

612
00:37:56.000 --> 00:38:01.119
want to make sure you're getting those deductions where it applies,

613
00:38:01.679 --> 00:38:04.119
you know, don't miss them. The one thing that you're

614
00:38:04.159 --> 00:38:06.559
going to need to keep track of is how much, when,

615
00:38:06.800 --> 00:38:10.960
where your business purpose, and what the business relationship is.

616
00:38:11.440 --> 00:38:15.159
Keep those receipts, especially if it's over seventy five dollars,

617
00:38:15.960 --> 00:38:19.199
because you've got to keep documentation, and even if you

618
00:38:19.280 --> 00:38:23.760
do it on the credit card form, your credit card statements,

619
00:38:24.199 --> 00:38:27.280
you can document there this was a business meal with

620
00:38:27.760 --> 00:38:31.920
whoever it was with or whatever it was. You know,

621
00:38:32.199 --> 00:38:35.119
it keeps you on the straight and narrow, and it

622
00:38:35.239 --> 00:38:39.199
keeps the support that you need to get these deductions

623
00:38:39.400 --> 00:38:42.480
now when you're not using a preparre that no structors

624
00:38:42.639 --> 00:38:46.880
The biggest item missed is pretteem huge savings. You know,

625
00:38:47.039 --> 00:38:51.400
IRS publication for sixty three travel Entertainment gift car expenses

626
00:38:51.480 --> 00:38:55.639
allows for standard meal and incidental expense deductions for those

627
00:38:55.719 --> 00:38:58.800
in the transportation industry. You either have to save all

628
00:38:58.840 --> 00:39:02.480
receipts for me expenses in those at tax t or

629
00:39:02.599 --> 00:39:06.039
you're going to take the IRS's standard meal allowance, which

630
00:39:06.039 --> 00:39:11.119
is currently eighty dollars. That increase October one, twenty twenty four.

631
00:39:12.199 --> 00:39:18.039
Will hopefully look for another increase this October in twenty five,

632
00:39:19.199 --> 00:39:23.559
but I don't foresee it with inflation down. So the

633
00:39:24.039 --> 00:39:28.039
big thing with per diem it is for each night

634
00:39:28.400 --> 00:39:32.599
you're on the road way from home, so you know

635
00:39:32.760 --> 00:39:36.440
you're going to get eighty dollars for every night you're

636
00:39:36.519 --> 00:39:39.480
on the way except for the first and last. First

637
00:39:39.599 --> 00:39:44.280
and last night's only count half days, so you get

638
00:39:44.320 --> 00:39:47.000
forty dollars for the first day, forty dollars for last day,

639
00:39:47.119 --> 00:39:50.039
every eighty dollars for every day in between. One of

640
00:39:50.079 --> 00:39:52.800
the best ways to keeping track of it is here's

641
00:39:52.920 --> 00:39:57.199
near eld. Another one is just using a paper log

642
00:39:57.320 --> 00:40:00.119
that logs the days that you're on the road, so

643
00:40:00.159 --> 00:40:05.559
that you know which days are which, and that you

644
00:40:05.599 --> 00:40:10.480
can document that you've got the right number of days

645
00:40:10.519 --> 00:40:16.519
for DM. Now, only eighty percent of that is deductible,

646
00:40:16.960 --> 00:40:20.599
So you know, for every eighty dollars a year only

647
00:40:20.639 --> 00:40:25.039
going to get sixty four dollars of deduction. But if

648
00:40:25.079 --> 00:40:28.440
you've been on the road for two hundred days, it's

649
00:40:28.559 --> 00:40:31.320
quite a deduction, quite a savings. Now, if you're a

650
00:40:31.440 --> 00:40:35.119
W two driver, you don't get deduction for pre deems.

651
00:40:35.440 --> 00:40:39.760
The nineteen twenty seventeen Trump Tax Code got rid of

652
00:40:40.360 --> 00:40:43.239
Form twenty one oh sixty. You cannot deduct per diems

653
00:40:43.360 --> 00:40:46.039
as a W two driver, but as an owner operator,

654
00:40:46.119 --> 00:40:50.800
self employed, you are going to get the deductions for

655
00:40:51.079 --> 00:40:54.840
per diems. Now, the IRS has some strict standards for

656
00:40:54.880 --> 00:40:58.679
the transportation industry. Of course, you've got to be played

657
00:40:59.119 --> 00:41:01.679
in the transportation an industry, and your job must keep

658
00:41:01.679 --> 00:41:04.440
you away from home on a regular basis long enough

659
00:41:04.440 --> 00:41:07.519
for you to sleep away from home. And at this

660
00:41:08.320 --> 00:41:13.800
it must directly involve moving goods or people by truck, training, bus, ship,

661
00:41:14.039 --> 00:41:16.360
airplane or BArch Hey. That nice to have that in

662
00:41:16.400 --> 00:41:21.039
the tax code. And the biggest deal also you must

663
00:41:21.320 --> 00:41:24.800
have a tax home to qualify for a tax home,

664
00:41:24.920 --> 00:41:29.039
you're required to encour expenses to maintain the home while

665
00:41:29.079 --> 00:41:31.760
you're on the road. So if you don't have an

666
00:41:31.920 --> 00:41:36.800
apartment or house or something, you're paying expenses for your truck,

667
00:41:37.159 --> 00:41:40.840
tractor or truck is considered to be your tax home,

668
00:41:41.280 --> 00:41:44.039
and you're now in what they call a tax turtle,

669
00:41:44.440 --> 00:41:48.599
and therefore you're never away from home and you don't

670
00:41:48.639 --> 00:41:52.239
get prettyems. So you've got to remember you do have

671
00:41:52.320 --> 00:41:56.159
to have a home. You know, these things are important.

672
00:41:56.360 --> 00:41:59.679
They're important to you as an owner operator. They're important

673
00:41:59.719 --> 00:42:04.719
to you you as a business owner. They're important to

674
00:42:04.880 --> 00:42:09.199
save yourself. And remember it's all about tax planning. It's

675
00:42:09.199 --> 00:42:13.519
the key to your financial defense to guarantee success in

676
00:42:13.679 --> 00:42:18.480
saving you money taxes. So if you haven't started planning,

677
00:42:18.719 --> 00:42:22.880
start planning today for twenty twenty five saving money so

678
00:42:22.960 --> 00:42:25.519
that you have more money in your pocket and less

679
00:42:25.599 --> 00:42:28.559
going to the government. Hey, running short on time here,

680
00:42:29.400 --> 00:42:33.000
Go to tax Talk for You dot com and subscribe

681
00:42:33.599 --> 00:42:35.800
so you never miss an episode. Go to Trucker Tax

682
00:42:35.800 --> 00:42:39.119
Tools dot com. Let's get you some Trucker bookkeeping at

683
00:42:39.239 --> 00:42:43.199
very low cost. Don't miss that one. Join us today,

684
00:42:43.880 --> 00:42:47.719
see us every week right here. W four CY Radio

685
00:42:48.360 --> 00:42:51.159
and also at tax Talk for You dot com. I

686
00:42:51.360 --> 00:42:55.599
am Eastern time. Thank you God, bless a glorious week.

687
00:42:55.760 --> 00:42:56.519
See you next week.

688
00:42:57.519 --> 00:43:01.239
Are you an individual or business at once understand taxes

689
00:43:01.280 --> 00:43:04.840
and how they affect you? Are you looking for specific

690
00:43:05.000 --> 00:43:10.360
tax advice for self employed business owners and truckers. Are

691
00:43:10.400 --> 00:43:14.679
you behind on taxes and your bookkeeping? Are you dealing

692
00:43:14.679 --> 00:43:18.519
with dirs and ready to have some relief, Then you

693
00:43:18.719 --> 00:43:22.639
need Tax Talk for You, hosted by tax and trucker

694
00:43:22.800 --> 00:43:27.960
expert Barry G. Fowler EA Kenyon ten am Eastern Time

695
00:43:28.199 --> 00:43:31.719
every Monday right here on W FOURCY Radio and Talk

696
00:43:31.840 --> 00:43:35.679
for TV. Don't forget to check this and past episodes

697
00:43:35.719 --> 00:43:39.880
at tax talkforu dot com. See you next week at

698
00:43:40.000 --> 00:43:43.920
W fourcy dot com