March 3, 2025

Trucking & Business Taxes

Trucking & Business Taxes

Trucker Bookkeeping & Taxes, mistakes truckers make in bookkeeping & Taxes, Business Entity type, Business & personal expenses, Tracking all receipts & Expenses, Tracking mileage, ELD, IFTA, Cost per Mile for trucking, Trucking repairs...

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Season 2

Trucker Bookkeeping & Taxes, mistakes truckers make in bookkeeping & Taxes, Business Entity type, Business & personal expenses, Tracking all receipts & Expenses, Tracking mileage, ELD, IFTA, Cost per Mile for trucking, Trucking repairs & maintenance, Engine Rebuild unplanned Expenses, Trucking Estimated Taxes, 2290 heavy highway taxes, Claiming the correct Per Diem for the Trucking and Transportation industry. Using Xero for you accounting Software. OOIDA Cost per Mile. Truck to Success OOIDA

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.

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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 explicit implies shall be extended to W FOURCY Radio

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or its employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Barry G.

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Fowler EA brings you tax talk for you right here

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on W four CY Radio and Talk for 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.

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With over thirty years of experience.

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Barry will break down taxes, bookkeeping, tax planning, and tax

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relief for individuals and businesses just like you. So let's

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have some tax talk for you with your hosts.

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Barry G. Foul Hey, welcome and good morning in the USA.

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And uh, you know this show dedicated talking about taxes, bookkeeping,

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tax planning, tax relief. Everything has to do with taxes

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and saving you money on you know everything you do

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in business, whether you're w two employee, whether you're self employed, running,

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whether you're running an escort, whether you're running LLC or partnership,

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everything you need to be doing is working towards the

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goal of saving yourself as much money as as possible.

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And you know, in part of doing this, and especially

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in the trucking industry, and you can apply a lot

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of this across multiple industries out there, is bookkeeping. You know,

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bookkeeping is going to be very crucial for you in

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your business to make informed decisions, ensuring that you've got

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every transaction is recorded, categorized. This kind of precision is

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going to help your business whether you're a trucking company

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or other business out there, but it's going to help

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you maintain your regulatory compliance, avoid penalties, avoid legal issues

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related to taxes, and legal issues in regards to fuel regulations.

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You know, for trucking industry, bookkeeping is kind of specialized

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and it aids in effective cost management, tracking expenses such

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as fuel, maintenance, payroll, tolls, scales, you name it, which

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allows you as a business owner to better budget plan,

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control costs and today's world of trucking, managing finances effectively

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is paramount. You know, just as a trucker needs a

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reliable GPS to navigate the roads, trucking company requires specialized

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bookkeeping to guide its financial journey. You know, here's some

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of the reasons why we're going to go through some

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of the mistakes that happen as well. But you know,

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if you understand trucker or bookkeeping, you know, every industry

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has its financial nuances, and the trucking sector is really

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no different from managing you know, fuel costs to understanding depreciation.

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You know, trucking company bookkeeping has got to be tailored

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to address these specific needs and staying compliant with you know,

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regulations that every trucking company has to go through. You know,

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trucking industry is probably one of the most over regulated

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industries there are, whether it's you know, if the reports,

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log books, el DS, timeless service, and other industry specific

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requirements a trucking company you know, has to go through.

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They need to adhere to these regulations. And then you know,

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what good bookkeeping also helps you do is steer clear

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of financial finds that are related to a lot of

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this bookkeeping also is going to give you some a

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very efficient cash flow analysis to be able to track

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your cash flow in your business. And you know, there

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are things that are very variable in the trucking industry

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like maintenance costs, varying client payment terms. You got your

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own authority out there and your invoicing and you're avoiding factoring,

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which you should be U You've got to be able

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to plan for your cash flow and knowing when you're

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going to get paid from the trucking companies that you're

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hauling for good bookkeeping can make all the difference in

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maintaining that healthy gash flow. You know, your bookkeeping is

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also going to give you a lot of strategic financial insights.

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You know, specialized bookkeeper doesn't just manage the numbers. You know,

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the bookkeeping that they're doing is going to provide a

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lot of strategic insights, whether it's considering you know, fleet expansion,

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exploring new routes, leveraging technology. The data driven advice through

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the bookkeeping is invaluable. Now, you know, we get questions

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and we love questions, So text the questions on in

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and get those to us. Do I n E. Oh

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this is sorry, this is Jeffrey now Louisiana. As matter

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of fact, we're going to be Taxation Solution is going

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to be in Louisiana this weekend at the inaugural Louisiana

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Moonshine Event. So if you've got a tax prib, hey,

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come out and join some moonshine and talk to us

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about your taxes, about your book keeping. We're going to

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be out there. It's in Leesville, and it's on Friday

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and Saturday, and a lot of great music. Some friends

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of ours with Keeping It Country Live their online radio

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station for just country music. A matter of fact, it's

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no commercials and it's real country music, not some of

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those new country that you're hearing out there these days.

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To check out Keeping It Country Live Radio. But we're

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going to be out there in Leesville for the like

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I said, the inaugural Louisiana Moonshine Festival. So look it

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up online or go over to our Facebook page at

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Taxation Solutions and you can find the connection to the

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Louisiana Moonshine event. So anyway, I'm sorry I got off here,

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but you know, when you got somebody come on the

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text in from Louisiana, you need to get some of

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this out. So I need somebody localized to help you.

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You know you're on the road, you're going cross country

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and truck or tax tools dot Com that we were

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run here that does the truck or bookkeeping and truck

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or taxes. We've learned and designed our business around you

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that are going to be on the road. You don't

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have time to go in and meet with somebody that

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is local, so you're not going to have time to

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come in and meet with us here, but we're going

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to be able to give you the information that you

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need to run your business better. So whether you were

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in one truck, ten trucks, whatever it is, you know

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we can help you with that. You don't need fancy

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degree to run your trucking business. What you do need

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is somebody that knows truck er bookkeeping inside and out

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like Trucker tax Tools does, and we can help you

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maintain that information. We know how to gather the information

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from you and help you so you spend less time

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dealing with bookkeeping than you know then you have to,

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and you don't have to do it yourself. You know,

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We've we've got that for you. So you know, even

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if you're confident in your bookkeeping skills, or maybe you've

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got a family member that wants to do it, you know,

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sometimes putting it in hands with somebody else and being

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able to get that advice and being able to bounce

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things off them and talk to them is extremely important,

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and especially not just in the trucking industry, but every

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industry out there is having a good person you can

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turn to to do tax planning or budgeting or planning

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for those eventual problems you're going to have have in business,

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whether it's maintenance, repairs, bad drivers, you name it. You've

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got to be prepared for it in your industry. And

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one of the ways of doing is having a very

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good bookkeeping firm like Trucker Tax Tools. Matter of fact,

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you can call Trucker Tax Tools at eight seven seven

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nine nine six two four seven seven and to be

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able to get a free consultation talk about your Trucker

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bookkeeping man. The fee start at twenty five dollars a

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week and you get some great bookkeeping for that and

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you know that the company is here to help you

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and guide you. Matter of fact, I speak at Owner Operators,

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Independent Drivers Association Foundations, Truck to Success Seminars. It's a

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seminar all around truckers. People actually looking to move out

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from being a W two driver to being a owner

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operator out there on your own. So you know, we

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sit down and we talk about all the things that

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are important, not just bookkeeping and taxes and lease purchase

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and depreciation, but old Ideas, great staff out there. Matter

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of fact, I'm going to try to get Andrew with

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the foundation on one day from Old Idea or maybe Louis.

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Louis is actually in DC testifying over I'm not sure

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what he's supporting these today, but it could be truck

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parking or truck problems on the road. But they're out

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there representing. You get one of them to come on

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here and talk as well. But you know, they talk

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about everything from getting your authority to medical, you name it. It's

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all about trucking. It's very intensive. Three days of learning,

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and you know, some people get out and go forward

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being an owner operator. Some people decide it's just much

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easier to stay at WQ DRY and it's just not

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for them. Whatever the case is, it was valuable learning

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and a lot of our clients that we talk to

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that have been through the program love the program. I

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think the program's great. So check out Ida's Foundation Truck

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to Success and when we come back right after this break,

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we're going to talk about some of the mistakes that

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you can make with your bookkeeping, your accounting, and in

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the trucking industry. You're right back 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 own the IRS

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

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it alone. Called 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 a

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free no obligation 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. Fowler.

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Hey, welcome back. We're talking about some of the mistakes

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you make in your bookkeeping and your trucking business, and

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this can be applied to a lot of other businesses

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out there, but this first one, and I've got a

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funny story for it. It's not really funny for them,

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but it is kind of a thing we preach and

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it happened. But first is not understanding your business entity

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type and tax classification. So when you set up your

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owner operator or a carrier business, you have several options

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for structuring the business that will impact bookkeeping and tax filing.

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So when you're setting up your business as a sole proprietorship,

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it's extremely simple and will help you avoid having to

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process payroll yourself. But all of your net income is

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subject to self employment tax. There you could have been

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LLC or an inc. Then you've got to determine which

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way you're going to be taxed. LLC can be taxed

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as a sole proprietorship. Again, all of your net income

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has self employment tax, or your LLC or INK can

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be taxed as a S corporation, which is common for

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trucking companies because it allows a portion of the net

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income to pass to the owner employee without being subject

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to their payroll tax or self employment tax. But you've

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got to have payroll, so you've got to have the

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payroll taxes paid. You're going to get a W two

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and you got to run payroll. Your inc. Could be

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taxed as an eleven twenty as well, which is just

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a straight corporation, but then you could be subject to

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double taxation. Hey. For more information about es corps, LLCs

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and sole proprietorships, check out one of our other podcasts

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and radio shows. Go to tax TALKFORU dot com and

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you can find our podcasts that are dedicated to es

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corps or LLC's the other option. With an LLC, you

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could be a multi member LLC and then you avoid payroll,

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but then you have guaranteed payments, so you would have

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guaranteed payment subject to self employment tax and the rest

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is just subject to federal tax and state tax. So

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check out those podcasts and you'll be able to get

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a lot more information on what you should be interesting story.

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We preach all the time. Get with somebody that knows

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your business, go through the consultation, talk about your structure,

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how you're going to structure your company before you get started. Now,

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that does not mean talk to another owner operator at

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a fuel pump or a rest stop, because owner operators

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the expertise at the fuel pump is exactly what it's worth.

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You paid nothing for it and it's worth nothing. And

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we have a client. We have free consultations with your bookkeeping,

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with your taxes to where it's all inclusive. And our

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client shows to get some advice at the fuel pump

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from another owner operator set up his escort. His fellow

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and own our operator said, set up the escort. Man.

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We make everything retroactive to January one. This was in September,

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and you can start doing payroll. They talk to the

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owner operator in like June, set up payroll for their

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sole proprietorship, put themselves on payroll, which is not allowed,

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then set up their escort, asked for it to be

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effective back to January one, but their company didn't start

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until September. Never changed their W nine's with companies they

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were driving with, so everything was ten ninety nine underneath

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their personal name, under their sole proprietorship. They did not

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set up a bank account for the new LLC, the

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new company, and nothing was run under this new company.

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And now they're wondering what do we do, how do

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we fix this? Well, you need advice. You need to know,

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like we said, need to know and understand your business

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entity type and tax classification. And then what are the

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dos and don't for your business to entity type and

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tax classification. Get advice not at the fuel pump, find

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somebody in your industry, and if it's the trucking industry,

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cross truck or tax tools, but at truck or tax

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tools dot com. Get that advice to help you. It's

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take number two. We see no matter what kind of

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entity that you're in, and that is mixing personal and

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business finances. Hey, you set up this company to save

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yourself money in taxes. You probably set up your company

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because you think it'll help save liability because you talk

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to that owner operator, fuel pump, bookkeeping fuel pump taxes.

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You know these guys that think they know everything they're

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doing and say, hey, I don't pay anything in tax

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I don't do this, so I don't do that. Hey,

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these things don't make it right in your business. It's

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like a truck stop lawyer. It doesn't work either. So

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make sure you've got a good attorney you can work

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with and get knowledgeable information for your business as you're

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getting started. But one thing you must do is keep

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your personal finances and business finances completely separate. Blending personal

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and business expenses injures your accurate tracking of profitability. When

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personal finances are included in business accounts, it really becomes

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difficult to assess operating costs, create budgets, develop effective strategies. Additionally,

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mixing business and personal finances complicates tax filings. When filing

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business taxes, it's important to ensure the accuracy when claiming

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your expenses. And including personal expenses could be very problematic

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and creates potential risks, and it con trigger major red

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flags in an audit. You know what can be done

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to keep your business and personal finances separate. Make sure

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you're only paying personal items mortgage, your car, payments, utilities,

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and everything else your own personal account. Don't mix business

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and personal in your business. That is one of the

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biggest things that you can fail to do. Mistake number three,

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You're not tracking all your receipts and your expenses. It's critical,

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and I mean critical to track all receipts and expenses.

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Failing to track every expense innovative believes to miss deductions

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inaccurate financial reporting risks. You really don't want to take

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costs on your taxes. You want the biggest tax deductions possible.

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This means you want to be very diligent about maintaining

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receipts for proof of business purchases, and for this reason

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taxes alone. Failing to track receipts can infect your bottom

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line and is simply very poor truck driving keeping. You know,

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simplify this tracking expenses, you start by categorizing your expenses

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regular reviewing financial statements. This practice not only helps you

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monitor charges, but also ensures accuracy across your accounts. If

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you're monitoring what's going through your credit cards or through

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your bank account, you're going to be able to catch

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fraud quicker as well. There are a lot of apps

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that are going to seek your financial accounts and streamline

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this process, offering tools to categorize and track spending effortlessly

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using truck or bookkeeping services like us here at Trucker

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tax tools dot com, which is dedicated to you as

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a trucker, helps to ensure that you're tracking all of

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your business expenses and make sure that you're dotting your

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eyes and crossing your t's. And now it's still important

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for you to keep your receipts just in case you

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get audited to be able to provide proof for your

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business and related expenses. Use our digital tools our apps

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to capture an organize receipts in real time. If you

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make it a practice to handle it on the spot,

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saves time and money related to your business and not

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having to think or wonder if you're missing receipts or

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try to track them down, take a picture, put them

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up into truck or tax tools portal so that you

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have them and they're there, and it helps you to

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continue to track great business expenses as you are maintaining

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and going through to keep your records. Hey, we're going

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to get into the next big mistake that people can

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do or hurdle to get over in your trucking company

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and be related to any business.

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Right after this, we have only scratched the surface of

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today's show. Please stand by as Parry G. Fowler will

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00:21:49.759 --> 00:21:55.599
be right back with tax talk for you. As an

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00:21:55.599 --> 00:21:58.799
owner operator, you already spend too much time away from

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00:21:58.799 --> 00:22:02.920
your family. Trucker Tax Tools handles all your bookkeeping and

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00:22:03.039 --> 00:22:06.039
taxes no matter what level trucker you are. Life on

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00:22:06.079 --> 00:22:09.279
the road can be taxing, but that doesn't mean that

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00:22:09.319 --> 00:22:13.200
your wallet or time with your family should suffer. Trucker

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00:22:13.240 --> 00:22:17.079
Tax Tools makes your life run smoothly. Go to Trucker

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00:22:17.160 --> 00:22:19.920
tax Tools dot com for a free guide that will

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00:22:19.960 --> 00:22:24.079
give you the tools to never worry about your taxes again.

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00:22:24.440 --> 00:22:28.519
Call Trucker Tax Tools eight seven seven nine sixty six

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00:22:28.880 --> 00:22:32.839
two four seven seven or go to Trucker tax Tools

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00:22:32.839 --> 00:22:37.599
dot com now and let the experts keep you trucking.

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Let's get back to tax stock for you with war

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tax Stock once again, here's your host, Barry G.

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Feller.

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Hey, welcome back. You know we're talking about mistakes you

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make in your Trucker bookkeeping, which affects your taxes, you

336
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know as well. And the next really big mistake people

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make is credit cards. Now, credit cards, you know, overall,

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I've been taught from a very young age, are a

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bad thing. You know, piling up debt on a credit

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card is is expensive. The interests they charge on you.

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Once they start charging you interest, it seems like they

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never stop charging new interest. So credit card debt becomes

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a really bad thing. But using a business credit card

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can help you simplify your bookkeeping. And you know, most

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account of systems like we use and stuff can sync

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with your bank account, your credit cards and you know,

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help us provide better data to you. And but where

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credit cards become a problem is when you're using a

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personal card for both business and personal. So you're mixing

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business and personal on one credit card, and your paying

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the whole credit card in monthly payments out there. So

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we've got to designate a portion of the principal and

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interest to the credit card and to personal and business

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out there. If you're having a have debt on a

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credit card that you're running out there, what we try

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to do is if you have to use a personal

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card out there in your business for credit card, dedicate

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one card that is strictly business and run no personal

359
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credit charges on that account. But also having a business

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card will help you because you could have rewards, and

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especially if you get a credit card with some good

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fuel rewards and if they are good on better on

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fuel or something, given the amount the trucker spend on fuel,

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I could ensure that you get a better reward back.

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There's also fuel cards, like if you're a member of

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oh Ida, you could get their fuel card and you've

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get some benefits of some lower costs, or depending on

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who you released onto, they may have a fuel card

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which you get a percentage back and maybe get a

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lower fuel prices on But whatever you do and choices

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on credit cards, I strongly suggest making sure that you

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pay the balance off every single month. Don't carry a

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balance on those credit cards. Mistake number five neglecting mileage

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logs or tracking your mileage. You know, we know there's

375
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elds in your ear trucks and it's tracking and logging

376
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many things on there. But keeping accurate mileage for tracking

377
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is a very good habit and it's essential for the

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tax deductions and compliance with regulations like the International Fuel

379
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Tax Agreement. If to missing or incomplete mileage logs can

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result in lost deductions, misreported data and finds. Maintaining your

381
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thorough milers logs it doesn't have to be very complicated.

382
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You can just put down your odometer readings. Your apps

383
00:26:24.480 --> 00:26:29.240
and gps is can automatically track mileage as well, whether

384
00:26:29.240 --> 00:26:34.279
you prefer digital or manual. Use a dedicated single source

385
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for maintaining these records and including the logging the purpose

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00:26:39.880 --> 00:26:45.000
of each trips and regularly updating those logs, and then

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you can avoid issues with the irs and maximize your

388
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deductions and how this goes both for your tractor and

389
00:26:51.640 --> 00:26:55.279
your personal vehicle. If you're using your personal vehicle to

390
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pick up supplies for the truck run errands free trucking business.

391
00:27:01.839 --> 00:27:05.000
Those are additional miles that you can deduct on your

392
00:27:05.079 --> 00:27:09.599
tax return or being reimbursed for if you are eleven

393
00:27:09.720 --> 00:27:14.200
twenty s as an escort or as a c corp,

394
00:27:14.440 --> 00:27:19.799
or as a multi member partnership out there as well. Now,

395
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if you're maintaining and tracking your mileage, the next mistake

396
00:27:25.400 --> 00:27:29.640
you get Mistake number six is not knowing your cost

397
00:27:29.799 --> 00:27:34.160
per mile. Hey at Olida structed successfully. This gets talked

398
00:27:34.160 --> 00:27:40.519
about right in the very first opening session. Is knowing

399
00:27:41.119 --> 00:27:43.680
your cost per mile. This is one of the most

400
00:27:43.720 --> 00:27:48.079
important metric for all trucking companies is the average cost

401
00:27:48.160 --> 00:27:51.000
per mile, which is extremely useful when it comes to

402
00:27:51.240 --> 00:27:54.400
decision making. Helps you price your services to make you

403
00:27:54.519 --> 00:27:58.640
more profitable, identify high cost areas that you may be

404
00:27:58.759 --> 00:28:02.200
able to reduce or eliminate. You know you've got variable

405
00:28:02.279 --> 00:28:08.359
cost per mile, such as fuel and fuel costs depending

406
00:28:08.440 --> 00:28:15.160
on the prices. Sometimes they stay pretty consistent, but price fluctuates,

407
00:28:15.480 --> 00:28:18.319
so those prices will be variable, can go up and down.

408
00:28:18.839 --> 00:28:24.039
But your average mile per gallon in your truck, you

409
00:28:24.079 --> 00:28:26.240
should be able to know what that is as well.

410
00:28:26.319 --> 00:28:29.519
By tracking mileage and looking at how much fuel you're

411
00:28:29.519 --> 00:28:32.680
putting in your truck, you can calculate fairly easily right

412
00:28:32.759 --> 00:28:36.400
there at the pump you're miles per gallon and that

413
00:28:36.480 --> 00:28:41.880
should stay pretty consistent. You'll also know by tracking your mileage,

414
00:28:41.920 --> 00:28:44.480
you'll be able to figure out your fixed cost per mile,

415
00:28:44.599 --> 00:28:50.079
such as insurance, and that can actually go down based

416
00:28:50.119 --> 00:28:52.119
on the number of miles you drive. To increase the

417
00:28:52.200 --> 00:28:55.720
miles you're driving, that insurance per mile will go down,

418
00:28:56.200 --> 00:28:58.720
and you might want to look at cost per mile

419
00:28:59.079 --> 00:29:05.720
separately for each category. Drivers, equipment, You know, customers, and

420
00:29:05.920 --> 00:29:09.759
so you can spot trends and look for areas of improvement.

421
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You may have multiple drivers driving multiple different trucks, and

422
00:29:15.480 --> 00:29:19.000
being able to figure out your cost per mile based

423
00:29:19.039 --> 00:29:23.160
on driver or truck can give you an idea. You know,

424
00:29:23.440 --> 00:29:27.440
are you making money or are these drivers particularly costing

425
00:29:27.480 --> 00:29:31.160
you more money than they are making constant repairs on

426
00:29:31.240 --> 00:29:35.039
a certain truck Because of the driver, you might be

427
00:29:35.119 --> 00:29:40.079
able to identify certain trends and certain costs that you

428
00:29:40.240 --> 00:29:45.799
can find to help eliminate some of the added costs

429
00:29:46.240 --> 00:29:49.880
that you have based on truck. You know, cost per

430
00:29:49.920 --> 00:29:52.519
mile can also help you identify that maybe you need

431
00:29:52.640 --> 00:29:55.960
a new truck to replace an older truck that isn't

432
00:29:56.039 --> 00:29:59.680
getting as good of fuel mileage out there and it's

433
00:29:59.680 --> 00:30:02.480
cost and you more to run. So a lot of

434
00:30:02.559 --> 00:30:06.799
variables out there that you can use to gain knowledge

435
00:30:07.359 --> 00:30:11.839
to run your business better today than you were yesterday.

436
00:30:12.240 --> 00:30:16.279
State number seven not staying up to date with your

437
00:30:16.920 --> 00:30:20.359
ift of data. The International Fuel Tax Agreement IFTA, and

438
00:30:20.440 --> 00:30:23.039
now it's a pack between the lower forty eight states

439
00:30:23.079 --> 00:30:27.480
and the ten Canadian provinces that all requires interstate motor

440
00:30:27.519 --> 00:30:33.039
carriers report fuel taxes. Alaska, Hawaii, and three of the

441
00:30:33.119 --> 00:30:38.039
Northern Canada and Canadian territories are unaffected. IFTA was put

442
00:30:38.119 --> 00:30:41.000
into place to redistribute the tax to the states where

443
00:30:41.000 --> 00:30:45.400
the fuel is being used, not where it's purchased. So

444
00:30:45.480 --> 00:30:47.559
if you're trying to decide whether to buy fuel in

445
00:30:47.680 --> 00:30:50.720
one state compared to another, then you'll need to subtract

446
00:30:50.799 --> 00:30:53.680
the state fuel tax from the retail price you pay.

447
00:30:54.279 --> 00:30:57.839
So keeping up with IFTA and your ift to data

448
00:30:58.240 --> 00:31:00.400
is one of the most important parts of running a

449
00:31:00.440 --> 00:31:04.880
trucking business, and hey, it's one of our top truck

450
00:31:04.960 --> 00:31:07.000
or book keeping tips at the end of each quarter,

451
00:31:07.119 --> 00:31:09.599
you must submit that IF to report, and if you

452
00:31:09.640 --> 00:31:12.279
don't have somebody that does, if we've got some great

453
00:31:12.359 --> 00:31:16.519
referrals out that can handle the ift of reporting for you.

454
00:31:17.200 --> 00:31:19.559
If the report's going to list the miles driven and

455
00:31:19.680 --> 00:31:23.680
the gallons purchased, these reports will determine either the amount

456
00:31:23.720 --> 00:31:26.839
of the tax still owe or the refunds do The

457
00:31:27.000 --> 00:31:30.319
IF to office in your trucking company's home state will

458
00:31:30.359 --> 00:31:35.240
notify you of your refund or your debt. So make

459
00:31:35.279 --> 00:31:37.200
sure you've got a good ift of company out there

460
00:31:37.359 --> 00:31:42.160
that can file these reports for you and get you

461
00:31:42.599 --> 00:31:45.200
your refund or get you to pay your tax. We've

462
00:31:45.200 --> 00:31:47.680
seen some people that have avoided this and end up

463
00:31:47.839 --> 00:31:51.559
owing quite a bit of tax because of the not

464
00:31:51.799 --> 00:31:55.519
filing if the reports timely for the states they are

465
00:31:55.640 --> 00:31:59.720
traveling in. I don't remember eight. Mistake Number eight is

466
00:31:59.799 --> 00:32:04.559
not planning for necessary expenses. We all know in the

467
00:32:04.599 --> 00:32:07.440
trucking industry you're going to have expenses, and some of

468
00:32:07.519 --> 00:32:12.160
them are unexpected, some of them are very necessary. So

469
00:32:12.240 --> 00:32:14.839
you've got to gain some insight and understand your upfront

470
00:32:14.920 --> 00:32:17.319
costs and now ongoing expenses so you can plan for them.

471
00:32:17.720 --> 00:32:20.720
You know, these include larger costs such as docking or

472
00:32:20.799 --> 00:32:24.279
parking fees for your fleet when it's not use off

473
00:32:24.319 --> 00:32:27.880
of space rental if you need it for your administrative

474
00:32:27.960 --> 00:32:37.640
tasks as boy, excuse me, administrative tasks that are out

475
00:32:37.680 --> 00:32:45.960
there for you. Smaller expenses such as tolls, tire changes, repairs, maintenance.

476
00:32:46.440 --> 00:32:51.079
We say smaller expenses. Those tire exchanges are sometimes huge.

477
00:32:51.160 --> 00:32:55.759
Repairs of maintenance can be huge depending on what you're

478
00:32:55.880 --> 00:33:00.599
going through in your business. So if you just starting

479
00:33:00.640 --> 00:33:03.119
your business, you need to factor in, you know, these

480
00:33:03.279 --> 00:33:07.839
costs and the costs of having trucks themselves, Insurance coverage,

481
00:33:09.640 --> 00:33:14.880
any licenses that you may need, any licenses you need

482
00:33:14.960 --> 00:33:20.799
to get between states and state lines federally, all these things.

483
00:33:20.880 --> 00:33:24.279
You can work with your association over OH I d

484
00:33:24.400 --> 00:33:27.720
A to you know, get these licenses and make sure

485
00:33:27.759 --> 00:33:31.359
you've got all the right licenses in place, and then

486
00:33:31.480 --> 00:33:35.440
pricing your services so that you can cover these expenses

487
00:33:35.519 --> 00:33:38.480
and make a profit. You don't have to get out

488
00:33:38.480 --> 00:33:41.000
there and start with a large fleet. You may be

489
00:33:41.160 --> 00:33:45.200
a one truck operation and then eventually grow too two

490
00:33:45.480 --> 00:33:49.480
or three or four or ten trucks. Help you build

491
00:33:49.559 --> 00:33:52.799
your cash flow and scale your business to bring in

492
00:33:53.000 --> 00:33:56.440
new clients, and then you know, having the cost of

493
00:33:57.319 --> 00:34:02.599
having a well maintained fleet is essential, and you know,

494
00:34:02.680 --> 00:34:06.359
regular oil changes and other standard maintenance on time and

495
00:34:06.799 --> 00:34:10.280
UH and then making sure that you're doing other options

496
00:34:11.000 --> 00:34:14.920
items to reduce those costs in your business, whether it's

497
00:34:14.960 --> 00:34:19.280
fuel costs, maintenance costs, identifying the best places to go

498
00:34:19.519 --> 00:34:24.239
to to get fuel on your route as well. You know,

499
00:34:24.360 --> 00:34:26.440
these are all things that you've got to think about

500
00:34:26.599 --> 00:34:32.800
in your business when you're UH planning your business and

501
00:34:32.960 --> 00:34:37.280
setting up your business now. State number nine is not

502
00:34:37.679 --> 00:34:47.840
planning for those necessary but unexpected expenses engine replacement, major

503
00:34:47.960 --> 00:34:53.360
damage accidents, things like that that you are not necessarily

504
00:34:53.559 --> 00:34:58.519
expecting to happen, but planning for the unexpected, setting aside

505
00:34:58.800 --> 00:35:02.960
the money for that eventual engine replacement, especially if you're

506
00:35:03.039 --> 00:35:06.760
running an older tractor. If you're running an older tractor,

507
00:35:06.880 --> 00:35:10.519
you may have to plan and budget for that eventual

508
00:35:10.800 --> 00:35:15.800
engine replacement. If you're running a new vehicle, making sure

509
00:35:15.880 --> 00:35:19.199
that your warranty is going to cover these such items

510
00:35:19.400 --> 00:35:24.679
that are out there, or if you're buying a huge tractor,

511
00:35:24.840 --> 00:35:28.440
do you have the warranty on it that would cover

512
00:35:28.559 --> 00:35:32.719
it in the event that something unexpected happens, and then

513
00:35:32.800 --> 00:35:36.280
have you budgeted for the deductible on your insurance or

514
00:35:36.360 --> 00:35:43.480
the deductible on those repairs if you need it and

515
00:35:43.679 --> 00:35:48.039
have it, so you know, as we're working through the

516
00:35:48.159 --> 00:35:54.639
business and you're going through being profitable. MI State number

517
00:35:54.880 --> 00:35:58.639
nine is not setting aside money. Actually ten is not

518
00:35:58.760 --> 00:36:03.440
setting money for taxes. Now, every business owner out there,

519
00:36:03.599 --> 00:36:09.800
you know, we plan for profits. We plan to keep

520
00:36:09.880 --> 00:36:15.920
your business as profitable as possible. But also in planning

521
00:36:16.199 --> 00:36:20.440
and making your business as profitable as possible, you are

522
00:36:20.559 --> 00:36:24.639
now going to have taxes on that business. So you

523
00:36:24.880 --> 00:36:29.760
need to make quarterly estimated tax payments. And you know,

524
00:36:30.559 --> 00:36:33.760
planning for those quarterly estimated tax payments and saving money

525
00:36:33.800 --> 00:36:36.559
for that sometimes as hard in your business. So maybe

526
00:36:36.639 --> 00:36:40.679
it's making monthly estimated tax payments so that you're having

527
00:36:40.719 --> 00:36:43.840
a smaller amount of money set aside every month for taxes.

528
00:36:44.440 --> 00:36:47.360
And whether it's setting aside and paying it into the

529
00:36:47.400 --> 00:36:51.320
federal government because you have required estimated tax payments, or

530
00:36:51.400 --> 00:36:53.960
whether you are setting it aside because you don't have

531
00:36:54.239 --> 00:36:58.760
required estimated tax payments to pay the tax come April fifteenth.

532
00:36:59.199 --> 00:37:03.800
Tax is do. It's discipline, it's talking with a good

533
00:37:04.280 --> 00:37:08.360
tax consultant, a tax planning to make sure that you

534
00:37:08.719 --> 00:37:11.559
have the money set aside to do it. Your first

535
00:37:11.639 --> 00:37:14.960
year trucking, you may not have to pay much in tax,

536
00:37:15.039 --> 00:37:19.039
depending on appreciation, income when you started your business, and

537
00:37:19.079 --> 00:37:21.360
a lot of other variables out there. But if you've

538
00:37:21.440 --> 00:37:24.599
been in business and you are making money, you should

539
00:37:24.599 --> 00:37:27.679
be able to see, hey, this is what the tax

540
00:37:28.000 --> 00:37:32.960
will possibly be if we filed your taxes before April fifteenth.

541
00:37:33.760 --> 00:37:37.320
We're done an estimate before April fifteenth. That estimate is

542
00:37:37.320 --> 00:37:39.679
going to include what your estimated tax payment should be

543
00:37:39.800 --> 00:37:42.880
for twenty twenty five, and then make your estimated tax

544
00:37:42.960 --> 00:37:46.960
payments every quarter or monthly if you need to. And

545
00:37:47.159 --> 00:37:49.800
if you see the profit is going up as we

546
00:37:49.960 --> 00:37:53.000
go through at least once or twice during the year,

547
00:37:53.079 --> 00:37:55.039
we'll tell you, hey, it sets out a little bit

548
00:37:55.119 --> 00:38:00.360
more money so that you are well prepared for taxis

549
00:38:00.719 --> 00:38:05.400
when taxes come due. And ideal trucker bookkeeping is going

550
00:38:05.480 --> 00:38:08.920
to include setting aside a percentage of that income dedicated

551
00:38:09.000 --> 00:38:12.199
tax account or making those estimated tax payments. We work

552
00:38:12.239 --> 00:38:14.679
with you to help you decide on that. Hey, we

553
00:38:14.719 --> 00:38:18.760
did have a question come in another one from Louisiana,

554
00:38:19.960 --> 00:38:22.039
and they said, yes, they're going to be going to

555
00:38:22.199 --> 00:38:26.599
Leesville and come see us at the inaugural Moonshine Festival

556
00:38:27.000 --> 00:38:30.000
if the weather holds out. Okay, we can understand that.

557
00:38:30.199 --> 00:38:32.599
But the head of question, can I deduct my truck

558
00:38:32.679 --> 00:38:37.239
payment as an expense? No, you cannot deduct your truck

559
00:38:37.320 --> 00:38:41.679
payment as an expense. However, you do deduct the interest

560
00:38:41.760 --> 00:38:45.760
portion of your truck payment and depreciation on the cost

561
00:38:45.920 --> 00:38:48.440
of your truck. Now, if you're leasing your truck, you know,

562
00:38:48.880 --> 00:38:52.039
as as opposed to buying your truck, and you actually

563
00:38:52.199 --> 00:38:55.639
have a operating lease, meaning that at the end of

564
00:38:55.679 --> 00:38:57.800
the lease you have to return the vehicle or the

565
00:38:57.840 --> 00:39:01.559
buyout is a rather large. Some buy out, you would

566
00:39:01.559 --> 00:39:05.239
be on an operating and that least payment would be deductible.

567
00:39:05.400 --> 00:39:08.440
But if you are purchasing your truck and have the

568
00:39:08.519 --> 00:39:14.000
truck payment, no, you're going to deduct interest, expense and depreciation.

569
00:39:14.599 --> 00:39:20.440
So keep those things in mind. Out there, there's a

570
00:39:20.519 --> 00:39:25.840
lot of expenses that are unique and different to trucking industry,

571
00:39:26.400 --> 00:39:28.360
and so you want to make sure you're working with

572
00:39:28.440 --> 00:39:33.119
somebody that's good in the trucking industry and UH truck

573
00:39:33.559 --> 00:39:40.519
driving expenses as we go. Mistake eleven putting off book

574
00:39:40.599 --> 00:39:47.159
keeping tax. You know, procrastination is fun, and you know

575
00:39:47.239 --> 00:39:52.760
we all procrastinate over something. But the more you procrastinate,

576
00:39:53.239 --> 00:39:56.199
the harder things become. Kind of like, you know, putting

577
00:39:56.239 --> 00:39:58.519
something on a credit card and you procrastinate until you

578
00:39:58.599 --> 00:40:00.119
got to pay it, or you don't pay it. You

579
00:40:00.280 --> 00:40:02.880
put it off and you pay the middle minimum. You

580
00:40:02.920 --> 00:40:05.599
know that's no fun either, and then you get the

581
00:40:05.639 --> 00:40:07.760
bill and you go, oh my gosh, am I going

582
00:40:07.800 --> 00:40:13.239
to pay this? Well, you can avoid inevitable and avoid

583
00:40:13.400 --> 00:40:17.440
procrastination by using Trucker tax FLEs dot com. But with

584
00:40:17.639 --> 00:40:22.599
many things in life, you know, family, getting home, truck maintenance,

585
00:40:22.639 --> 00:40:27.400
truck repairs, trailer repairs, all these things are competing for

586
00:40:27.800 --> 00:40:30.639
your attention, and some of them you've got to do

587
00:40:30.719 --> 00:40:32.719
to keep the truck on the road. Some of them

588
00:40:32.880 --> 00:40:36.239
is just delaying, and you make that mistake of putting

589
00:40:36.280 --> 00:40:41.360
it off, and putting off trucker bookkeeping leads to disorganized

590
00:40:41.719 --> 00:40:49.239
this organization, missing deadlines, stress of last minute record keeping.

591
00:40:50.039 --> 00:40:54.159
I'll do it later, it's be easier later. All of

592
00:40:54.199 --> 00:40:56.840
a sudden, now you're six months, twelve months, and you

593
00:40:56.960 --> 00:40:59.880
haven't done it and you've procrastinated, Now what do you do?

594
00:41:00.599 --> 00:41:02.440
We can help with that at Trucker Tax Tools. But

595
00:41:03.039 --> 00:41:05.760
if you're going to do it yourself, hey, sometimes that

596
00:41:05.960 --> 00:41:08.519
makes it very hard to get back into it and

597
00:41:08.679 --> 00:41:11.440
do it and catch up for six months out there.

598
00:41:11.920 --> 00:41:14.639
You can use a service like truckertax tools dot com.

599
00:41:15.199 --> 00:41:19.239
Save you time, save you money, keep you organized, stay

600
00:41:19.320 --> 00:41:21.920
on top of you for these things that you need

601
00:41:22.079 --> 00:41:25.000
to make your book keeping better, to run your business better,

602
00:41:25.480 --> 00:41:27.280
to do a lot of the things we've talked about

603
00:41:27.280 --> 00:41:31.239
earlier in this podcast, and make your life easier, run

604
00:41:31.320 --> 00:41:36.119
your business better as well. Stay number eleven. And we

605
00:41:36.239 --> 00:41:41.519
see this in the trucking industry in particular not claiming

606
00:41:41.840 --> 00:41:47.000
or not claiming your predeums correctly predems in the trucking

607
00:41:47.079 --> 00:41:49.480
industry when we have a whole program on per diem.

608
00:41:49.480 --> 00:41:53.039
As a matter of fact, last week's podcast talked about

609
00:41:53.079 --> 00:41:56.519
per diems as we first got into it, and go

610
00:41:56.639 --> 00:41:58.360
back and listen to that and you can find out

611
00:41:58.960 --> 00:42:02.440
all the information out per diems and doing them correctly.

612
00:42:02.960 --> 00:42:05.320
But they are tax deductions that cover meals at a

613
00:42:05.400 --> 00:42:08.760
standard amount versus having to track and deduct actual costs

614
00:42:08.800 --> 00:42:12.360
for meals in the trucking and transportation industry, and it's

615
00:42:12.400 --> 00:42:15.760
important to claim your predems correctly to reduce your gross income,

616
00:42:15.840 --> 00:42:20.079
resulting and less money ode to the irs. Go back

617
00:42:20.119 --> 00:42:22.760
and listen to that podcast at tax Talk for You

618
00:42:23.079 --> 00:42:27.480
dot com. Subscribe, get in there and listen to last

619
00:42:27.480 --> 00:42:31.840
week's podcasts so you can learn more about the per diems.

620
00:42:32.400 --> 00:42:35.159
Now something to help you along the lines you're going

621
00:42:35.239 --> 00:42:37.079
to be a do it yourself or finding the right

622
00:42:37.599 --> 00:42:44.159
accounting software bookkeeping software for your business. We recommend if

623
00:42:44.199 --> 00:42:46.079
you're going to do it yourself, get in and use

624
00:42:46.360 --> 00:42:51.960
zero x e r O, very good software. We adapt

625
00:42:52.039 --> 00:42:55.280
to zero to the trucking industry with our own Trucker

626
00:42:56.119 --> 00:43:00.320
Charge of Accounts. We have one of the best industry

627
00:43:00.400 --> 00:43:04.239
practices for truckers that are out there at Trucker tax

628
00:43:04.280 --> 00:43:09.360
Tools dot com, and we can help you get started

629
00:43:09.880 --> 00:43:13.440
either using zero on your own, or using zero through us,

630
00:43:15.039 --> 00:43:18.440
or just using us for your bookkeeping in your taxes.

631
00:43:18.519 --> 00:43:23.280
Like I said right now, our base plan is twenty

632
00:43:23.360 --> 00:43:28.039
five dollars a week. Man. It gives you us doing

633
00:43:28.079 --> 00:43:34.760
your bookkeeping profit and losses, balance sheet comparisons from month

634
00:43:34.800 --> 00:43:38.519
to month, year to year, all that is available to you,

635
00:43:39.159 --> 00:43:42.760
and what we do for your bookkeeping can be available

636
00:43:42.800 --> 00:43:47.079
to you through zero online and be able to help

637
00:43:47.159 --> 00:43:52.159
you run your business. You know, we've addressed a lot

638
00:43:52.199 --> 00:43:57.519
of problems. We've talked about Trucker bookkeeping. Trucker accounting and

639
00:43:57.599 --> 00:44:02.719
bookkeeping differs from regular business account in many ways. You

640
00:44:02.880 --> 00:44:05.880
need to make sure you've got somebody on your side

641
00:44:05.960 --> 00:44:10.119
that knows what they're doing. Trucker Taxes is different than

642
00:44:10.239 --> 00:44:14.079
many industries out there, and Trucker Tax Tools gives you

643
00:44:15.719 --> 00:44:19.760
the plans available to you to help you run your

644
00:44:20.239 --> 00:44:26.519
business smoother, easier, got the eyes proctatees, get you the

645
00:44:26.639 --> 00:44:30.639
pat best inductions on your taxes so that you know

646
00:44:30.960 --> 00:44:35.280
that you are saving the most amount of money allowed

647
00:44:35.599 --> 00:44:38.320
by law. And these are the fun things that we

648
00:44:38.440 --> 00:44:42.360
get to do for you as an owner operator, as

649
00:44:42.400 --> 00:44:48.239
somebody in this business and somebody that needs the help

650
00:44:48.360 --> 00:44:52.920
and the guidance of the business that you are in. Hey,

651
00:44:53.000 --> 00:44:55.239
connect with us at Trucker tax Tools dot com or

652
00:44:55.280 --> 00:44:59.880
on Facebook at Trucker tax Tools, call us get that

653
00:45:00.000 --> 00:45:03.440
free consultation, let us get started, let us save you money. Hey,

654
00:45:03.519 --> 00:45:06.360
but also connect with us at tax Talk for You

655
00:45:06.639 --> 00:45:10.199
dot com and don't miss a single episode every Monday,

656
00:45:10.280 --> 00:45:15.320
ten am right here at Tax Talk for You dot com.

657
00:45:15.760 --> 00:45:18.519
Thank you. I'm a God bless We be safe out

658
00:45:18.599 --> 00:45:21.480
there and we'll talk to you next week ten am

659
00:45:21.800 --> 00:45:25.119
Eastern time, right here tax Talk for You dot com.

660
00:45:25.360 --> 00:45:25.599
Thank you.

661
00:45:25.679 --> 00:45:30.519
Are you an individual or business that wants to understand

662
00:45:30.679 --> 00:45:33.960
taxes and how they affect you? Are you looking for

663
00:45:34.119 --> 00:45:39.480
specific tax advice for self employed business owners and truckers.

664
00:45:40.079 --> 00:45:44.119
Are you behind on taxes and your bookkeeping? Are you

665
00:45:44.239 --> 00:45:48.239
dealing with dirs and ready to have some relief? Then

666
00:45:48.360 --> 00:45:52.000
you need Tax Talk for You, hosted by tax and

667
00:45:52.119 --> 00:45:57.000
trucker expert Barry g. Fouer ea Keunyan ten am the

668
00:45:57.079 --> 00:46:00.320
Eastern time, every Monday, right here on W four c

669
00:46:00.519 --> 00:46:03.760
Y Radio and Talk for TV. Don't forget to check

670
00:46:03.920 --> 00:46:07.800
this and past episodes at tax talkfor youuth dot com.

671
00:46:08.519 --> 00:46:11.519
See you next week at W four c Y dot

672
00:46:11.639 --> 00:46:11.840
com