June 9, 2025

Trucking & Taxes

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

TaxTalk4U Trucking and Taxes Over the Road Trucker OTR specialized bookkeeping and taxes for truckers, trucker bookkeeping trucker tax deductions. How can truckers deduct per diem? Are you making the most of your deductions capturing all trucking expenses? Moving items from after tax to pretax for maximum savings. Trucker bookkeeping at truckertaxtools.com. IRS problems for truckers solving tax debt.

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

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

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

WEBVTT

1
00:00:00.120 --> 00:00:02.359
The topics and opinions express in the following show are

2
00:00:02.359 --> 00:00:04.000
solely those of the hosts and their guests and not

3
00:00:04.040 --> 00:00:06.960
those of W FOURCY Radio. It's employees are affiliates. We

4
00:00:07.000 --> 00:00:10.080
make no recommendations or endorsements for radio show programs, services,

5
00:00:10.119 --> 00:00:12.439
or products mentioned on air or on our web. No

6
00:00:12.560 --> 00:00:15.759
liability explicitor implies shall be extended to W FOURCY Radio

7
00:00:15.800 --> 00:00:18.559
or it's employees are affiliates. Any questions or comments should

8
00:00:18.559 --> 00:00:20.920
be directed to those show hosts. Thank you for choosing

9
00:00:21.039 --> 00:00:23.359
W FOURCY Radio.

10
00:00:27.960 --> 00:00:28.359
Barry G.

11
00:00:28.559 --> 00:00:31.600
Fouler EA brings you tax talk for you right here

12
00:00:31.640 --> 00:00:35.200
on W four CY Radio and Talk for TV. As

13
00:00:35.200 --> 00:00:39.000
an enrolled agent and a national leader in tax resolution

14
00:00:39.640 --> 00:00:43.719
as well as Trucker bookkeeping and tax planning. With over

15
00:00:43.799 --> 00:00:49.240
thirty years of experience, Barry will break down taxes, bookkeeping,

16
00:00:49.719 --> 00:00:53.880
tax planning, and tax relief for individuals and businesses just

17
00:00:54.079 --> 00:00:57.079
like you. So let's have some tax talk for you

18
00:00:57.520 --> 00:00:58.439
with your hosts.

19
00:00:58.920 --> 00:01:00.200
Barry G. Foul Or.

20
00:01:02.799 --> 00:01:06.400
Hey, good morning man. It's a Monday morning. We all

21
00:01:06.439 --> 00:01:10.560
know it. Things happen, kind of get lost in the

22
00:01:10.719 --> 00:01:13.560
in the muck of the weekend and trying to get

23
00:01:13.599 --> 00:01:17.200
everything going this week. It's just the way it is.

24
00:01:17.280 --> 00:01:21.719
You know. If you got questions, tax questions, bookkeeping questions, hey,

25
00:01:21.760 --> 00:01:24.599
put them into the radio station here and let us

26
00:01:24.599 --> 00:01:28.079
get them answered for you. You know, it's it's going

27
00:01:28.120 --> 00:01:29.840
to be a great morning. You know. We got up

28
00:01:30.519 --> 00:01:32.760
it was raining already this morning, had some things we've

29
00:01:32.760 --> 00:01:35.400
got to take care of on the ranch, and we

30
00:01:35.519 --> 00:01:38.400
get in here and it's pouring cats and dogs. Hey,

31
00:01:38.840 --> 00:01:42.040
it is what it is. But taxes are still there.

32
00:01:42.480 --> 00:01:45.359
And one of the biggest questions besides the question my

33
00:01:45.400 --> 00:01:47.760
producer had last week of Hey, what's your show going

34
00:01:47.840 --> 00:01:50.439
to be about this week? And we went trucking in taxes.

35
00:01:50.680 --> 00:01:53.640
You know, it was such a busy week last week.

36
00:01:54.079 --> 00:01:58.239
We had more and more truckers calling to get their

37
00:01:58.359 --> 00:02:03.120
bookkeeping start with us so that we could actually help

38
00:02:03.200 --> 00:02:06.200
them save money on taxes. But the big question came

39
00:02:06.280 --> 00:02:09.919
back to us is, hey, we've heard all about the

40
00:02:10.000 --> 00:02:13.719
tax cuts that are expiring at the end of twenty

41
00:02:13.759 --> 00:02:17.960
twenty five. If this as Trump would put it a big,

42
00:02:18.000 --> 00:02:21.240
beautiful bill. I still think it's overrated and it still

43
00:02:21.319 --> 00:02:23.919
needs to be a balanced budget. But hey, only you

44
00:02:23.960 --> 00:02:27.159
and I have to balance our budgets can't live on

45
00:02:27.240 --> 00:02:32.199
debt forever. Government evidently figure figures they can live on

46
00:02:32.280 --> 00:02:36.840
debt and charge our grandkids, great grandkids and probably great

47
00:02:36.879 --> 00:02:39.599
great grandkids are the ones that are going to have

48
00:02:39.639 --> 00:02:44.879
to make up what our generation and generation before us

49
00:02:44.919 --> 00:02:48.400
causes debt to go through through the roof, I mean,

50
00:02:48.479 --> 00:02:50.280
through the ceiling age you might want to call it.

51
00:02:50.360 --> 00:02:53.199
You know, they keep raising the debt ceiling. But what's

52
00:02:53.240 --> 00:02:57.319
going to happen if this big beautiful bill with extending

53
00:02:57.360 --> 00:03:01.280
the tax cuts doesn't go through? You know it should,

54
00:03:01.319 --> 00:03:03.199
but you know, there is a lot of Congressmen that

55
00:03:03.719 --> 00:03:07.280
are now falling on the side of wanting a more

56
00:03:07.319 --> 00:03:10.080
balanced budget. And then you've got the other side that

57
00:03:10.120 --> 00:03:13.199
wants to spend freely and spend everything and anything and

58
00:03:13.319 --> 00:03:16.280
whatever they can spend is great. But what's going to

59
00:03:16.360 --> 00:03:20.000
happen is is your standard deduction, first thing and foremost

60
00:03:20.120 --> 00:03:23.960
is going to shrink. I mean, in twenty seventeen, before

61
00:03:24.639 --> 00:03:27.479
these tax cuts went into effect, your standard deduction was

62
00:03:27.479 --> 00:03:30.520
about six thousand, three hundred and fifty dollars for single filers,

63
00:03:30.879 --> 00:03:34.560
twelve thousand, seven hundred for joint filers twenty twenty five.

64
00:03:35.159 --> 00:03:40.319
These amounts are now fourteen thousand, six hundred for single filers,

65
00:03:40.560 --> 00:03:45.520
twenty nine thousand, two hundred for married filing joint and

66
00:03:45.719 --> 00:03:49.080
you know, so you got all those inflationary adjustments and

67
00:03:49.120 --> 00:03:51.360
everything else, so we don't know exactly where the standard

68
00:03:51.400 --> 00:03:57.000
deduction would actually fall, probably be around eighty three hundred

69
00:03:57.039 --> 00:04:01.000
and about sixteen thousand, six hundred for joint five. You know,

70
00:04:01.080 --> 00:04:06.240
that's just guessing based on you know, increases for inflation

71
00:04:06.520 --> 00:04:08.759
and other stuff out there. So that's going to have

72
00:04:08.800 --> 00:04:11.599
a major impact. Now you might be able to itemize

73
00:04:11.840 --> 00:04:15.479
a lot more that's out there. If you're a W

74
00:04:15.639 --> 00:04:19.600
two truck driver or even an outside salesperson that doesn't

75
00:04:19.600 --> 00:04:22.879
get reimbursed for the mileage they've got to do for

76
00:04:24.319 --> 00:04:26.920
seeing clients, or if you're a W two trucker, your

77
00:04:26.959 --> 00:04:29.079
perdems that you used to be able to get those

78
00:04:29.199 --> 00:04:32.879
might come back. But as an owner operator and any

79
00:04:32.920 --> 00:04:35.720
other small business man, you're going to see the impact

80
00:04:35.800 --> 00:04:38.720
on me. On the corporate level. One of the biggest

81
00:04:38.839 --> 00:04:42.600
changes that the Trump tax cuts put in there, the

82
00:04:42.680 --> 00:04:45.839
corporate rate dropped to twenty one percent, and that's a

83
00:04:45.879 --> 00:04:51.079
significant drop from thirty five percent. You know, this cut

84
00:04:51.160 --> 00:04:53.560
to corporate tax is actually permanent. It's not going to

85
00:04:53.600 --> 00:04:57.480
expire even if a legistration does. So that's a good

86
00:04:57.480 --> 00:05:00.439
thing because you've got to remember, when a co operation

87
00:05:00.600 --> 00:05:04.399
pays taxes, they're not paying it out of their coffer.

88
00:05:04.800 --> 00:05:06.759
They're paying it out of what they collect from you

89
00:05:06.879 --> 00:05:09.600
and I. So when you're at the store or you're

90
00:05:09.639 --> 00:05:14.480
buying merchandise that has the tax is embedded into it,

91
00:05:14.839 --> 00:05:17.519
and therefore you know you're going to pay it. When

92
00:05:17.680 --> 00:05:19.879
if that rate was to go back up, they're going

93
00:05:19.959 --> 00:05:24.120
to increase those prices and pass it on to you

94
00:05:24.680 --> 00:05:27.399
the consumer because they've still got to make a certain

95
00:05:27.399 --> 00:05:30.120
net income. You know, people don't talk about that. People

96
00:05:30.160 --> 00:05:32.279
don't talk about what the corporate tax rate is and

97
00:05:32.319 --> 00:05:36.800
what it does to you and I as the consumer.

98
00:05:37.240 --> 00:05:39.160
But you know, maybe they really should look at the

99
00:05:39.199 --> 00:05:43.240
impact to the consumer. See, now, when you're paying the tax,

100
00:05:43.279 --> 00:05:46.000
you pay your income tax, and then when you go

101
00:05:46.079 --> 00:05:50.199
in and buy goods or services, you're having to pay

102
00:05:50.399 --> 00:05:53.279
the income tax that they're going to pay as well.

103
00:05:53.600 --> 00:05:56.319
The multiple levels of taxation that you just don't feel

104
00:05:56.319 --> 00:05:58.920
it and don't see it. Do you think it's great

105
00:05:59.279 --> 00:06:02.399
that we're going to tax somebody like Excellent Mobile or

106
00:06:02.680 --> 00:06:06.720
whatever company out there to think it's going to come

107
00:06:06.720 --> 00:06:09.720
out of their net income. It comes out of the

108
00:06:09.800 --> 00:06:12.120
net income, but only after they collected from you and I.

109
00:06:12.560 --> 00:06:16.160
Something that really will impact you as an owner operator

110
00:06:16.240 --> 00:06:19.639
or as a small business person is that pass through

111
00:06:19.800 --> 00:06:24.560
business income deduction that could go away. So this is

112
00:06:24.600 --> 00:06:30.600
that qualified business Income Deduction GBI, that twenty percent deduction

113
00:06:31.040 --> 00:06:35.079
that you get to take, whether you're a pastor company

114
00:06:35.360 --> 00:06:39.720
or a schedule see. And you know this means that

115
00:06:40.279 --> 00:06:43.519
you're a sole proprietor with one hundred thousand in business income,

116
00:06:43.560 --> 00:06:46.600
for example, you can immediately deduct twenty thousand of that

117
00:06:47.199 --> 00:06:49.680
income and not have to pay tax on it. So

118
00:06:50.160 --> 00:06:54.279
big savings there that could go away if they do

119
00:06:54.439 --> 00:06:58.959
not pass or put in to the law making these

120
00:06:59.000 --> 00:07:04.879
tax cuts permanent. So you know, many Republicans support it,

121
00:07:05.360 --> 00:07:08.639
making it more likely that it'll be extended thanks to

122
00:07:09.199 --> 00:07:12.720
you know, Republican dominated Congress. However, if they allowed to

123
00:07:12.759 --> 00:07:16.839
expire small businesses, you're going to expect a significant boost

124
00:07:16.920 --> 00:07:19.839
your tax Billy, if if you're happened to be in

125
00:07:19.879 --> 00:07:23.279
a twenty percent tax bracket, let's say, and you don't

126
00:07:23.279 --> 00:07:26.879
get to take off this this twenty percent of it

127
00:07:26.920 --> 00:07:30.600
is tax now. So you know, that's four thousand dollars

128
00:07:30.639 --> 00:07:35.199
added to your taxes right there because of this one

129
00:07:36.000 --> 00:07:38.720
beast of the law that if it doesn't get past it,

130
00:07:39.079 --> 00:07:42.600
gosh you money. You know. One of the things that

131
00:07:42.639 --> 00:07:45.879
the Trump tax cuts did back in seventeen, uh it

132
00:07:45.959 --> 00:07:49.279
did put some caps on your state and local taxes.

133
00:07:49.319 --> 00:07:53.120
It was limited to ten thousand, and it was bad

134
00:07:53.160 --> 00:07:57.000
news for high income taxpayers and high tax states like California,

135
00:07:57.160 --> 00:08:00.839
New York, Jersey, many of them aid more than ten

136
00:08:00.879 --> 00:08:04.160
thousand in state local taxes. Hey, you know, you would

137
00:08:04.199 --> 00:08:09.560
think Democrats would before this because it would be taxing

138
00:08:09.639 --> 00:08:14.120
high income people more and it would affect lower class,

139
00:08:14.279 --> 00:08:17.959
lower income, middle income a lot less. But a lot

140
00:08:18.000 --> 00:08:20.079
of these guys are from these high tax rates and

141
00:08:20.279 --> 00:08:23.279
want to get every bit of the taxes take it

142
00:08:23.360 --> 00:08:26.199
off at the federal level. Things don't always add up

143
00:08:26.240 --> 00:08:29.360
and doesn't seem the way it should be. Somebody would

144
00:08:29.360 --> 00:08:33.200
actually explain to people what this cap on state and

145
00:08:33.320 --> 00:08:37.879
local taxes does? You know? You that say the high

146
00:08:38.159 --> 00:08:40.840
income people should be taxed more should be for this.

147
00:08:41.279 --> 00:08:44.360
Those that want to see lower taxes, lower tax rates

148
00:08:44.559 --> 00:08:49.919
should be against setting this limitation out there because you

149
00:08:50.120 --> 00:08:53.159
should be able to deduct the taxes you're paying at

150
00:08:53.159 --> 00:08:56.879
the state and local level to the fullest extent against

151
00:08:57.039 --> 00:09:03.000
your federal income tax as well. Opinion my soapbox expanded

152
00:09:03.399 --> 00:09:06.600
child tax credit so you with children. You know, one

153
00:09:06.639 --> 00:09:10.960
of the Trump provisions that assisted the lower and middle

154
00:09:10.960 --> 00:09:14.960
income taxpayers was the expansion of the child tax credit

155
00:09:15.120 --> 00:09:18.759
from one thousand it was up to two thousand. Now.

156
00:09:19.360 --> 00:09:22.799
This extension is of the elevated tax credit is supported

157
00:09:22.840 --> 00:09:28.080
by both sides. Some on the Republican side are a

158
00:09:28.080 --> 00:09:31.559
little opposed to it, but I think everybody is for

159
00:09:31.679 --> 00:09:34.279
it because it does give money to the back to

160
00:09:34.320 --> 00:09:38.559
the families with children. So, you know, we could see

161
00:09:38.600 --> 00:09:41.360
some of these things being passed, but some of these things,

162
00:09:41.440 --> 00:09:44.120
you know, may take a little bit more to get

163
00:09:44.159 --> 00:09:47.559
over the hurdle because what they're looking for is more

164
00:09:47.639 --> 00:09:52.720
and more money coming into the federal government into their coffers. Now,

165
00:09:52.840 --> 00:09:55.799
they don't care what the impact is to you or

166
00:09:55.879 --> 00:09:59.759
I or anybody else in America. What they are concerned

167
00:09:59.759 --> 00:10:02.960
with is how much money they can get coming into

168
00:10:03.159 --> 00:10:08.759
the coffers to redistribute or spend or overspend whatever it

169
00:10:08.799 --> 00:10:12.039
may be. Heyfles break We're going to talk about some

170
00:10:12.200 --> 00:10:15.279
more of the things that will happen if they do

171
00:10:15.440 --> 00:10:21.279
not pass the prop tax credits tax cuts from twenty seventeen.

172
00:10:21.360 --> 00:10:22.440
Will be right back after that.

173
00:10:23.559 --> 00:10:27.200
We have only scratched the surface of today's show. Please

174
00:10:27.240 --> 00:10:30.480
stand by as Barry G. Fowler will be right back

175
00:10:30.600 --> 00:10:36.360
with tax talk for you. If you owe the IRS

176
00:10:36.519 --> 00:10:39.840
or are going through an IRS audit, don't go at

177
00:10:39.879 --> 00:10:40.360
it alone.

178
00:10:40.639 --> 00:10:43.159
Called Taxation Solutions tax.

179
00:10:42.879 --> 00:10:46.639
Relief at eight eight eight nine three zero one zero

180
00:10:46.799 --> 00:10:51.799
one six. We are your solution for IRS debts, audits,

181
00:10:52.200 --> 00:10:53.480
back taxes.

182
00:10:53.200 --> 00:10:55.759
Garnishments, leans and levees.

183
00:10:56.240 --> 00:10:59.840
Whether you're an individual or business, you need a solution

184
00:11:00.200 --> 00:11:04.600
and a strong, aggressive tax resolution. Don't let the I

185
00:11:04.759 --> 00:11:07.759
R S walk all over you. Stop the IRS now

186
00:11:08.320 --> 00:11:11.720
call eight eight eight nine three zero one zero one

187
00:11:11.879 --> 00:11:16.240
six or go to Taxationsolutions dot net now for a

188
00:11:16.480 --> 00:11:24.840
free no obligation consultation. Let's get back to tax stock

189
00:11:24.919 --> 00:11:29.399
for you with more tax stock once again, here's your host,

190
00:11:29.879 --> 00:11:30.320
Barry G.

191
00:11:30.600 --> 00:11:30.960
Fowler.

192
00:11:33.279 --> 00:11:36.799
Hey Jerry, thanks for tuning in and asking the question

193
00:11:36.879 --> 00:11:42.519
about is there a simple way to do truck or bookkey? Absolutely,

194
00:11:43.440 --> 00:11:45.080
you know the first one is a given. You call

195
00:11:45.120 --> 00:11:49.080
truck or tax tools, and we'll help take care of you.

196
00:11:49.519 --> 00:11:53.159
We're gonna go over later in this segment or the

197
00:11:53.200 --> 00:11:56.919
next one some of the processes that you can do

198
00:11:57.120 --> 00:11:59.960
as an owner operator for do it yourself, you know, Bookie,

199
00:12:00.360 --> 00:12:01.799
and we're going to talk about it. Come back to

200
00:12:01.840 --> 00:12:04.600
that and talk about it. But very good question. And

201
00:12:04.679 --> 00:12:06.480
I hope you're being safe out there in the road.

202
00:12:06.519 --> 00:12:08.399
Let us know where you're at. If you're tuning in,

203
00:12:09.320 --> 00:12:12.240
go ahead and text us and chat with us, or

204
00:12:12.600 --> 00:12:15.759
we're even calling, let's talk to you and you can

205
00:12:15.840 --> 00:12:18.440
tell us how your trip's going and where you are

206
00:12:18.440 --> 00:12:21.960
in the country. We always laugh because we're at the

207
00:12:21.960 --> 00:12:25.480
truck shows and we're talking to people. We always tell

208
00:12:25.519 --> 00:12:27.480
them we'll take phone calls from you no matter where

209
00:12:27.480 --> 00:12:29.679
you're at, if you're in your truck driving, unless you're

210
00:12:29.759 --> 00:12:33.120
driving through Nebraska or West Texas, because we just know

211
00:12:33.159 --> 00:12:35.240
you're calling because you're bored and there ain't nothing else

212
00:12:35.320 --> 00:12:38.240
out there, you know. We always laugh with our truckers

213
00:12:38.240 --> 00:12:40.679
about it, just because we're having fun. We'll take your

214
00:12:40.679 --> 00:12:43.320
call anyway, but we will cut you off after a

215
00:12:43.320 --> 00:12:45.679
little bit of time if you're really really bored out

216
00:12:45.679 --> 00:12:48.159
there and just want to talk about bookkeeping in taxes,

217
00:12:48.480 --> 00:12:52.559
which generally turns into family branching, friends, you name it,

218
00:12:52.879 --> 00:12:55.159
we go through you're friends of ours, So you can

219
00:12:55.240 --> 00:12:57.480
appreciate that. Hey, some of the other things that do

220
00:12:57.679 --> 00:13:01.000
change if they do not pass the Trump Tax Credits

221
00:13:01.080 --> 00:13:05.679
or extend them. The Trump Tax Cut Credits reduced the

222
00:13:05.759 --> 00:13:08.759
property values on which home owners can deduct their mortgage

223
00:13:08.759 --> 00:13:12.159
interests from seven hundred and fifty thousand or two seven

224
00:13:12.200 --> 00:13:16.240
hundred and fifty thousand from a million. If the Trump

225
00:13:16.279 --> 00:13:20.759
Tax Credits credits expire, then the million dollar limitation would

226
00:13:20.799 --> 00:13:25.399
be back in there. The Trump Tax Credits raise the

227
00:13:25.399 --> 00:13:28.559
limit on deductions for charitable contributions to sixty percent of

228
00:13:28.600 --> 00:13:34.320
adjusted gross income from fifty percent before the legislation passed.

229
00:13:34.360 --> 00:13:37.840
The fifty percent limit would also be reinstated if Congress

230
00:13:37.840 --> 00:13:41.600
didn't extend Trump Tax Credits. Now, if you've given that

231
00:13:41.679 --> 00:13:44.440
much money to charity, you know, heyk God bless you,

232
00:13:44.639 --> 00:13:47.639
and then hopefully you know it's it's some really good

233
00:13:47.679 --> 00:13:51.159
charities out there that you're supporting, and it means you're

234
00:13:51.159 --> 00:13:54.840
making some really good money and maybe your debt free

235
00:13:54.879 --> 00:13:57.519
and you don't have to worry about it. One of

236
00:13:57.519 --> 00:13:59.919
the other things that Trump tax credit did is boost

237
00:14:00.320 --> 00:14:05.200
the state and give tax exemptions, and those could be repealed. Well,

238
00:14:05.240 --> 00:14:08.720
you know, this affects only small percentage of Americans, but

239
00:14:08.840 --> 00:14:15.559
it is about you know, passing on family maybe family land,

240
00:14:16.679 --> 00:14:20.720
maybe family businesses. Maybe you run a small business has

241
00:14:20.799 --> 00:14:22.679
become worth quite a bit and you're trying to pass

242
00:14:22.720 --> 00:14:27.919
into your family the gift the estate, those taxes can

243
00:14:28.000 --> 00:14:31.720
hit you hard. So for twenty twenty four, the estate

244
00:14:31.919 --> 00:14:35.799
tax exemption is thirteen point six million, but if that

245
00:14:36.519 --> 00:14:39.639
legislation expired, it would go down to five million. So

246
00:14:40.039 --> 00:14:42.159
if you've got land, maybe that's been in the family

247
00:14:42.200 --> 00:14:45.879
for years and it's become worth a lot, and we've

248
00:14:46.039 --> 00:14:48.799
known a lot of ranchers and family people that have

249
00:14:48.879 --> 00:14:53.080
had land that passed on generation after generation and now

250
00:14:53.120 --> 00:14:56.639
be worth maybe six or seven million, Well they're going

251
00:14:56.720 --> 00:14:59.679
to be paying a high percentage of the other couple

252
00:14:59.679 --> 00:15:02.159
of million, and a lot of them people can't afford

253
00:15:02.639 --> 00:15:06.919
to pay those taxes on that inheritance and they have

254
00:15:07.000 --> 00:15:09.480
to sell their their property or their land, which is

255
00:15:09.559 --> 00:15:13.879
really really sad. You even see that today house values

256
00:15:14.039 --> 00:15:19.399
where they've gone and gone up, and it really could

257
00:15:19.639 --> 00:15:24.279
impact you or the family. So in basically looking back

258
00:15:24.320 --> 00:15:27.840
at this, if Congress doesn't extend the Trump tax kit,

259
00:15:28.279 --> 00:15:30.600
Americans are going to be stuck with one of the

260
00:15:30.919 --> 00:15:36.159
largest tax hikes in history. You the average taxpayer is

261
00:15:36.200 --> 00:15:39.360
going to see a twenty two percent tax hike. The

262
00:15:39.480 --> 00:15:42.720
average family afford is going to see at least seventeen

263
00:15:42.759 --> 00:15:46.159
hundred dollars tax hike. Child tax credit is going to

264
00:15:46.159 --> 00:15:50.600
be cut in half for forty million family Nearly every

265
00:15:50.720 --> 00:15:56.559
taxpayer is going to see their guaranteed deductions slashed by

266
00:15:56.679 --> 00:16:01.639
more than half. Twenty six small twenty six million small

267
00:16:01.720 --> 00:16:06.120
businesses are going to be settled with a huge tax increase.

268
00:16:06.720 --> 00:16:12.519
You know, this could be a very big problem for

269
00:16:12.679 --> 00:16:17.799
here in the United States. It would probably if this

270
00:16:17.879 --> 00:16:22.879
doesn't pass, be something that could very much hurt the economy.

271
00:16:23.320 --> 00:16:27.759
It's going to hurt your mind and everybody else's pocketbook

272
00:16:28.200 --> 00:16:33.039
and affect this country for probably years to come. Granted,

273
00:16:33.080 --> 00:16:35.240
over a couple of years, everybody will get used to it.

274
00:16:35.679 --> 00:16:39.559
But who really wants a twenty two percent tax hike?

275
00:16:39.960 --> 00:16:42.720
Which of the forty million families are willing to give

276
00:16:42.840 --> 00:16:46.639
up their child tax credits? Small business people, people that

277
00:16:46.679 --> 00:16:50.679
are trying to run a business to see a huge

278
00:16:50.759 --> 00:16:53.879
hike in their federal income tax because they lose the

279
00:16:53.960 --> 00:16:58.559
qualified business deduction. Not you, not me, not any trucker,

280
00:16:59.039 --> 00:17:02.279
not any owner operate out there. These are the things

281
00:17:02.559 --> 00:17:07.119
that matter. So you know, hey, if you really want

282
00:17:07.119 --> 00:17:09.400
to push this through, I say, hey, call your congressman,

283
00:17:09.839 --> 00:17:12.559
call your senator. Let them know that they got to

284
00:17:12.599 --> 00:17:17.680
pass and make permanent the Trump tax credits, tax cuts.

285
00:17:18.079 --> 00:17:21.079
That's what you want to do out there. And we

286
00:17:21.079 --> 00:17:25.839
were talking about from Jerry the question about bookkeeping and

287
00:17:26.240 --> 00:17:29.920
making it easy and then do it yourself. You process.

288
00:17:31.559 --> 00:17:34.160
You know, the question comes down to do truck drivers,

289
00:17:34.160 --> 00:17:36.759
owner operators need bookkeepers? You know, to put it in

290
00:17:36.799 --> 00:17:41.079
your circumstances and your preferences. Absolutely. I mean, if you

291
00:17:41.279 --> 00:17:44.240
love coming home working with numbers and sitting down and

292
00:17:44.279 --> 00:17:47.319
sitting at a computer and trying to figure out your

293
00:17:47.359 --> 00:17:50.960
expenses and want to do your your bookkeeping and maybe

294
00:17:51.039 --> 00:17:54.039
put it in a spreadsheet and then trying to figure

295
00:17:54.039 --> 00:17:56.599
out how to summarize everything for your tax preprayer at

296
00:17:56.640 --> 00:17:59.599
the end of the year, and then Fred over do

297
00:17:59.680 --> 00:18:02.440
I have all the deductions and everything else? Hey, do

298
00:18:02.480 --> 00:18:05.720
it your self. Bookkeeping might before you do it yourself bookkeeping.

299
00:18:05.960 --> 00:18:11.799
You know you can keep track of these expenses and income,

300
00:18:12.279 --> 00:18:18.279
maintenance records, parking receipts, repair records. But if you work

301
00:18:18.279 --> 00:18:21.559
with a bookkeeper, it can allow you to remain organized,

302
00:18:21.920 --> 00:18:26.559
help you identify cash flow and cash flow problems, streamline

303
00:18:26.720 --> 00:18:32.279
your bookkeeping, maximize your tax deductions, and help save you money.

304
00:18:32.559 --> 00:18:35.279
But in order to keep your books in order as

305
00:18:35.279 --> 00:18:38.960
an owner operator, keep a logbook, make sure you review

306
00:18:39.359 --> 00:18:43.920
your finance, keep your business and personal accounts separate, save

307
00:18:44.000 --> 00:18:48.359
all your receipts, update your books regularly and often, so

308
00:18:49.000 --> 00:18:51.599
you know, keep a lot book. You know it's to

309
00:18:51.680 --> 00:18:56.480
help you keep your finances in order. It can be digital,

310
00:18:56.519 --> 00:19:00.880
it could be physical, whatever you're easier to work with.

311
00:19:01.240 --> 00:19:03.559
If you keep a digital log book, you know, keep

312
00:19:03.559 --> 00:19:07.200
it backed up so that you don't don't lose anything.

313
00:19:07.599 --> 00:19:10.160
And if you you know, hey, if something goes wrong

314
00:19:10.240 --> 00:19:13.480
on your phone or on your laptop or on your tablet,

315
00:19:13.519 --> 00:19:16.000
wherever you keep a track of it, you know you

316
00:19:16.039 --> 00:19:19.960
can lose lose documents something goes wrong, so keep it

317
00:19:20.000 --> 00:19:25.160
back up, make sure you're tracking everything, all the expenses

318
00:19:25.240 --> 00:19:27.519
that are there for your business, and then review it.

319
00:19:27.880 --> 00:19:29.720
You know it doesn't mean just look down there, look

320
00:19:29.759 --> 00:19:32.640
at the numbers. It means run the numbers. Look at

321
00:19:32.640 --> 00:19:34.839
your cost per mile, Look at the costs that are

322
00:19:34.880 --> 00:19:38.160
going out. Are they ordinary and necessary? Are you spending

323
00:19:38.200 --> 00:19:40.640
money that you shouldn't be spending on things that you

324
00:19:40.720 --> 00:19:44.160
don't need or aren't required to run your business? Your

325
00:19:44.200 --> 00:19:46.799
first goal is to make a profit. Second goal is

326
00:19:46.839 --> 00:19:53.079
to put money away for retirement savings, emergency funds, money

327
00:19:53.119 --> 00:19:58.000
for repairs or maintenance, future repairs and maintenance, something that

328
00:19:58.400 --> 00:20:02.039
will help you get through when that inevitable problem happens.

329
00:20:02.400 --> 00:20:05.799
We always tell people keep your business and personal account separate.

330
00:20:06.319 --> 00:20:08.440
It's kind of like trying to keep everything in order

331
00:20:08.680 --> 00:20:10.799
in buckets. You've got a bucket here for your family,

332
00:20:11.000 --> 00:20:13.119
and you've got a bucket here for your business, and

333
00:20:13.279 --> 00:20:16.240
only business should be coming out of the business bucket

334
00:20:16.599 --> 00:20:19.839
and personal comes out of the personal. Not a combined bucket.

335
00:20:20.000 --> 00:20:23.880
It's separate buckets. And then last, save all your receipts,

336
00:20:24.680 --> 00:20:28.400
keep them in good order. Hey, you know, we tell

337
00:20:28.440 --> 00:20:31.480
you this because people have learned a lesson the hard way,

338
00:20:31.759 --> 00:20:34.279
and we'll talk about some of those lessons that people

339
00:20:34.319 --> 00:20:36.359
have learned right after this break.

340
00:20:37.400 --> 00:20:41.039
We have only scratched the surface of today's show. Please

341
00:20:41.079 --> 00:20:44.319
stand by as Barry Chief Bowler will be right back

342
00:20:44.440 --> 00:20:50.359
with tax talk for you. As an owner operator, you

343
00:20:50.519 --> 00:20:54.079
already spend too much time away from your family. Trucker

344
00:20:54.160 --> 00:20:57.480
Tax Tools handles all your bookkeeping in taxes. No matter

345
00:20:57.519 --> 00:21:00.240
what level trucker you are. Life on the road can

346
00:21:00.279 --> 00:21:03.839
be taxing, but that doesn't mean that your wallet or

347
00:21:03.960 --> 00:21:07.839
time with your family should suffer. Trucker Tax Tools makes

348
00:21:07.920 --> 00:21:09.519
your life run smoothly.

349
00:21:10.039 --> 00:21:12.559
Go to Trucker tax Tools dot com.

350
00:21:12.160 --> 00:21:14.839
For a free guide that will give you the tools

351
00:21:15.200 --> 00:21:19.160
to never worry about your taxes again. Call Trucker Tax

352
00:21:19.240 --> 00:21:23.680
Tools eight seven seven nine sixty six two four seven

353
00:21:23.799 --> 00:21:27.440
seven or go to Trucker tax Tools dot com now

354
00:21:27.480 --> 00:21:33.839
and let the experts keep you trucking. Let's get back

355
00:21:33.880 --> 00:21:37.839
to tax stock for you with more tax stock once again,

356
00:21:38.279 --> 00:21:40.240
here's your host, Barry G.

357
00:21:40.480 --> 00:21:40.839
Feller.

358
00:21:43.119 --> 00:21:45.720
Hi, welcome back. We were talking about buckets not for

359
00:21:45.799 --> 00:21:49.640
catching rain or water, but in different buckets that you

360
00:21:49.759 --> 00:21:54.240
use for your business to capture your expenses, in your

361
00:21:54.319 --> 00:21:58.319
income and where it should go. Now, there's problems when

362
00:21:58.359 --> 00:22:03.559
you have one bucket that you're using for business and personal. Now, first,

363
00:22:03.599 --> 00:22:07.000
if you are an LLC or an INK, you're set

364
00:22:07.079 --> 00:22:11.079
up as a business, a separate entity. You know, having

365
00:22:11.200 --> 00:22:15.680
one bucket, as most lawyers will tell you, is it

366
00:22:15.720 --> 00:22:18.319
breaks what they call the corporate veil. Now I'm not

367
00:22:18.359 --> 00:22:21.599
an attorney, so don't take this as legal advice. I'm

368
00:22:21.640 --> 00:22:24.319
just an enrolled agent. Never wanted to be an attorney.

369
00:22:24.319 --> 00:22:27.680
Matter of fact, I don't like most attorneys. But I

370
00:22:27.759 --> 00:22:30.680
do have friends that are attorneys that we do use

371
00:22:31.079 --> 00:22:34.839
because they do serve a useful purpose. Unfortunately, you have

372
00:22:34.920 --> 00:22:38.400
to have one that's a friend somewhere. But you know,

373
00:22:38.519 --> 00:22:40.920
you've got to have separate buckets out there for that

374
00:22:41.039 --> 00:22:44.000
corporate veil at the very least. But the other problems

375
00:22:44.000 --> 00:22:46.359
you run into and you have one bucket and you

376
00:22:46.400 --> 00:22:48.559
go through an on it, the irs is looking at

377
00:22:48.799 --> 00:22:52.319
everything in and out of this bucket. So if you've

378
00:22:52.319 --> 00:22:56.599
got a separate personal bucket and only personal things went

379
00:22:56.640 --> 00:22:59.599
out of it, easy to track and show them that

380
00:22:59.720 --> 00:23:02.599
this money was transferred from the business, either in payroll

381
00:23:02.680 --> 00:23:05.440
or distributions, and went into the personal and the personal

382
00:23:05.480 --> 00:23:09.160
paid for it. Over Here is the business bucket. Everything

383
00:23:09.200 --> 00:23:13.480
that went into the business bucket was business. Everything that

384
00:23:13.519 --> 00:23:19.039
went out expenses and everything else was business, not personal.

385
00:23:19.599 --> 00:23:23.279
All business, and then you make the transfers for distributions

386
00:23:23.319 --> 00:23:26.880
and payroll over to the personal go from there. Keeps

387
00:23:26.880 --> 00:23:29.640
it cleaner. If you ever go through an audit with

388
00:23:29.720 --> 00:23:34.319
the IRS or state taxing, you can go and show, hey,

389
00:23:34.400 --> 00:23:38.440
this bucket over here was all business. And then it

390
00:23:38.480 --> 00:23:41.279
becomes easy to identify the money that went in and

391
00:23:41.279 --> 00:23:45.920
transferred were distributions from your business or was payroll from

392
00:23:46.200 --> 00:23:49.000
your business. And I do this whether you're doing a

393
00:23:49.039 --> 00:23:52.759
schedule to see a ten sixty five an eleven twenty

394
00:23:52.799 --> 00:23:56.319
s and it definitely an eleven twenty. So whatever tax

395
00:23:56.359 --> 00:23:59.039
forms you happen to be using, those are the ones

396
00:23:59.039 --> 00:24:00.680
that we've got to sit down and we've got to

397
00:24:00.720 --> 00:24:03.559
look at. So we've got to make it make sense.

398
00:24:04.079 --> 00:24:04.519
Now.

399
00:24:04.799 --> 00:24:09.039
As an owner operator truck driver, your tax situation is

400
00:24:09.200 --> 00:24:12.920
unique from other businesses. You know, you do file and

401
00:24:13.000 --> 00:24:16.640
pay taxes just like any other business owner, but you're

402
00:24:16.680 --> 00:24:20.880
also eligible for deductions that are specific to you as

403
00:24:20.920 --> 00:24:23.480
a truck driver. And so if you need more information

404
00:24:23.839 --> 00:24:26.559
on how to file and pay taxes as an owner

405
00:24:26.640 --> 00:24:30.079
operator truck driver where you're out a matter of fact,

406
00:24:30.440 --> 00:24:32.200
just give us a call. We can set you up

407
00:24:32.319 --> 00:24:37.799
on a very low weekly fee for our owner operators.

408
00:24:37.799 --> 00:24:40.359
We started twenty five dollars a week. It's really what

409
00:24:40.400 --> 00:24:42.599
we make it really simple. And you got to do

410
00:24:42.720 --> 00:24:45.119
is call it eight seven seven nine six six two

411
00:24:45.240 --> 00:24:49.119
four seven seven again eight seven seven nine sixty six

412
00:24:49.200 --> 00:24:51.720
two four seven seven. You're not going to talk to

413
00:24:51.720 --> 00:24:54.400
a salesperson. You're gonna end up talking to one of

414
00:24:54.440 --> 00:24:58.039
our staff here that you know, our receptionist or me

415
00:24:59.400 --> 00:25:01.920
a our admins, and we're going to talk about what

416
00:25:02.000 --> 00:25:04.599
we do and how we can help you. I was

417
00:25:04.640 --> 00:25:07.839
talking to a trucker just the other day. I know

418
00:25:07.960 --> 00:25:11.240
quite a few last weeks, so you know where we're

419
00:25:11.279 --> 00:25:13.440
getting them started. But he goes, I just need to

420
00:25:13.440 --> 00:25:15.519
know you're gonna make it easy. Yeah, we're gonna make

421
00:25:15.559 --> 00:25:19.480
it easy. You can either send us an email of

422
00:25:19.559 --> 00:25:23.000
PDFs your bank statements, your credit card statements using business,

423
00:25:23.799 --> 00:25:29.319
your settlement statements, your financing agreements, and things like that,

424
00:25:29.759 --> 00:25:31.680
and we take it and run. As a matter of fact,

425
00:25:31.720 --> 00:25:34.440
if you give us accountants access to some of the banks,

426
00:25:34.480 --> 00:25:39.119
we can pull the bank statements ourselves, credit card statements ourselves,

427
00:25:39.359 --> 00:25:41.000
and we can get them right into our system. And

428
00:25:41.039 --> 00:25:45.039
where we do things better and faster for you. Settlement statements,

429
00:25:45.079 --> 00:25:46.960
you can email them and put them in our secure portal.

430
00:25:47.000 --> 00:25:48.920
Whatever you want to do, we're going to make it

431
00:25:49.240 --> 00:25:51.839
easy because the last thing you want to do is

432
00:25:52.200 --> 00:25:56.200
spend time helping us gather all this information when you're

433
00:25:56.240 --> 00:25:58.119
home with your family, when you're supposed to be spending

434
00:25:58.160 --> 00:26:02.519
time with you know, a couple of things that you

435
00:26:02.920 --> 00:26:06.599
need to be doing as an owner operator. One, make

436
00:26:06.599 --> 00:26:09.960
your estimated tax payment. You know, the IRS does require

437
00:26:10.000 --> 00:26:13.240
you to make quarterly estimated tax payments based on your

438
00:26:13.279 --> 00:26:18.640
business profit. Now, being self employed, if you're running a schedule, see,

439
00:26:19.359 --> 00:26:22.079
you've got to cover the self employment tax, which is

440
00:26:22.119 --> 00:26:25.599
the fifteen point three. You've got to cover your federal

441
00:26:25.640 --> 00:26:29.319
income tax and your state income tax. So if you're

442
00:26:29.359 --> 00:26:32.680
expecting to owe more than one thousand dollars, you have

443
00:26:32.759 --> 00:26:36.960
to make quarterly estimated tax payments of both self employment

444
00:26:37.240 --> 00:26:40.720
and income taxes. Now, we calculate these things for you

445
00:26:40.799 --> 00:26:42.759
being a client of ours, and tell you, hey, these

446
00:26:42.799 --> 00:26:45.440
are the estimates that you should be making. Now. We'll

447
00:26:45.480 --> 00:26:48.640
also do a lot of tax planning with you to

448
00:26:48.839 --> 00:26:52.880
make sure that, hey, we're getting all the deductions we

449
00:26:53.079 --> 00:26:55.960
run what we call a tax minimizer to make sure

450
00:26:56.000 --> 00:26:58.960
that there isn't any deductions that you should be taking

451
00:26:59.039 --> 00:27:02.680
that you have been taking, especially when you're doing bookkeeping

452
00:27:02.720 --> 00:27:06.079
with us. And the other side of it is is

453
00:27:06.240 --> 00:27:09.240
we're looking to help you maximize your profit. That includes

454
00:27:09.640 --> 00:27:13.400
taking every deduction you can, making sure the deductions that

455
00:27:13.559 --> 00:27:18.359
you aren't taking aren't legit, making sure the things that

456
00:27:18.400 --> 00:27:21.640
you're paying with after tax dollars that could have been

457
00:27:21.680 --> 00:27:25.119
pre tax are moved to the right bucket so that

458
00:27:25.160 --> 00:27:29.440
you're getting the deductions. So sometimes maximizing the deductions saves

459
00:27:29.519 --> 00:27:32.319
more money in your pocket from taxes. So we've got

460
00:27:32.359 --> 00:27:36.279
to look at everything that is out there. So you know,

461
00:27:36.880 --> 00:27:41.240
when we're estimated tax tax payments, we're usually running on

462
00:27:41.240 --> 00:27:44.279
the safe harbor method, which is calculated by looking at

463
00:27:44.319 --> 00:27:48.839
your prior years taxes and calculating the right amount and

464
00:27:48.880 --> 00:27:50.640
then saying, hey, you got it to pay these over

465
00:27:50.640 --> 00:27:52.759
the next you know, four quarters.

466
00:27:53.039 --> 00:27:53.279
Now.

467
00:27:53.559 --> 00:27:55.680
The other amount it's a little bit harder to do,

468
00:27:56.400 --> 00:28:00.599
is your actual estimates, but it's it is you you're

469
00:28:00.599 --> 00:28:03.799
not paying more than you should. But you know, a

470
00:28:03.799 --> 00:28:06.079
lot of times, you know, when we're trying to do

471
00:28:06.119 --> 00:28:08.640
this you're a little bit hind on getting stuff to us,

472
00:28:08.640 --> 00:28:11.160
so it makes it a little bit more difficult. And

473
00:28:11.240 --> 00:28:12.880
we got to look at the ebbs and flows of

474
00:28:12.920 --> 00:28:17.680
your business. So if you're new trucker, owner operator, even

475
00:28:17.680 --> 00:28:20.839
an independent contractor, you know you're better off using the

476
00:28:20.880 --> 00:28:25.519
actual income method for estimating quarterly taxes and not necessarily

477
00:28:25.599 --> 00:28:28.759
using safe harbor. Now, if you've worked a really good job,

478
00:28:28.759 --> 00:28:30.640
we've got to look at the safe harbor too, because

479
00:28:31.079 --> 00:28:33.839
you may have a lot more taxes that you have

480
00:28:33.920 --> 00:28:37.039
to pay in as estimated taxes unless we can make

481
00:28:37.039 --> 00:28:39.920
sure that we get the actual right amount based on

482
00:28:40.440 --> 00:28:44.680
your actual expenses. Now, we look at every tax deduction

483
00:28:44.799 --> 00:28:47.559
out there that you can have. As an owner operator,

484
00:28:47.559 --> 00:28:49.839
even a small business owner, you got to look at

485
00:28:49.880 --> 00:28:53.319
every tax deduction that's there. You know, as an owner

486
00:28:53.400 --> 00:28:57.400
operator you may have at least payment on your truck

487
00:28:57.880 --> 00:29:01.480
has to be looked at. Is it right? Is the

488
00:29:02.039 --> 00:29:05.960
lease payment a operating lease or capital lease. Got to

489
00:29:06.000 --> 00:29:08.839
make sure you have the right definitions there, making sure

490
00:29:08.880 --> 00:29:13.319
you're deducting all your fuel expenses, you're bookkeeping and tax fees,

491
00:29:13.759 --> 00:29:24.359
your office supplies, maintenance fees, your uniforms, your truck supplies, licenses, permits, training, communications, insurance.

492
00:29:24.920 --> 00:29:29.640
So any expense that you have record of and is

493
00:29:29.799 --> 00:29:33.680
ordinary necessary for your business can be considered tax deductible.

494
00:29:34.039 --> 00:29:39.039
You know, we have an extensive list of items that

495
00:29:39.079 --> 00:29:42.240
are tax deductible. Matter of fact, when I speak at

496
00:29:42.599 --> 00:29:46.839
Truck to Success oh Ida foundations, Truck and Success seven

497
00:29:46.880 --> 00:29:50.519
are mainly for truckers that are looking to move from

498
00:29:50.640 --> 00:29:53.319
maybe a W two driver out to being their own

499
00:29:53.400 --> 00:29:57.200
owner operator, their own business owner, or even owner operators

500
00:29:57.200 --> 00:30:00.279
that are looking to expand their business and get their

501
00:30:00.279 --> 00:30:03.039
own authority and want to know all the rules and

502
00:30:03.079 --> 00:30:06.319
regulations all around that. When I'm out there speaking, we

503
00:30:06.720 --> 00:30:11.759
go through an extensive list of tax deductions and deductible

504
00:30:11.799 --> 00:30:15.559
expenses for you as an owner operator. Now that list

505
00:30:15.640 --> 00:30:20.559
is quite extensive that is out there, and so you know,

506
00:30:20.599 --> 00:30:25.119
we try to make this easy and simple for owner

507
00:30:25.200 --> 00:30:29.559
operators that are using us for their bookkeeping and taxes,

508
00:30:30.119 --> 00:30:33.200
and we have to make it as easy as possible

509
00:30:34.279 --> 00:30:38.319
for you the owner operator. Now, you as an owner

510
00:30:38.359 --> 00:30:41.880
operator and you as a small business owner. Sometimes you're

511
00:30:42.000 --> 00:30:47.400
worried about risks of audit. What happens if I take

512
00:30:47.440 --> 00:30:51.640
too many deductions? What happens there. We come back after

513
00:30:51.680 --> 00:30:54.559
this break. We're going to talk about reducing the risk

514
00:30:54.680 --> 00:30:57.000
of audit on your business. I want to do that

515
00:30:57.079 --> 00:30:57.640
right after this.

516
00:30:59.160 --> 00:31:02.839
We have only scratch the surface of today's show. Please

517
00:31:02.880 --> 00:31:06.119
stand by as Barry G. Fowler will be right back

518
00:31:06.240 --> 00:31:12.160
with tax talk for you. As an owner operator. You

519
00:31:12.279 --> 00:31:14.799
already spend too much time away from your family.

520
00:31:15.359 --> 00:31:17.440
Stop spending time doing paperwork.

521
00:31:17.880 --> 00:31:21.400
Go to Trucker tax tools dot com a solution filled

522
00:31:21.440 --> 00:31:25.599
specifically for truckers. Trucker tax tools dot Com makes your

523
00:31:25.680 --> 00:31:31.799
life run smoothly. Let's get back to tax stock for

524
00:31:31.920 --> 00:31:34.720
you with more tax stock once again.

525
00:31:35.200 --> 00:31:37.720
Here's your host, Barry G. Fowler.

526
00:31:40.039 --> 00:31:43.480
Well, welcome back. Risks. You know you take risks. You

527
00:31:43.519 --> 00:31:46.240
get behind the wheel of big eighteen wheeler and you're

528
00:31:46.279 --> 00:31:49.799
driving down the road. We take risks every day when

529
00:31:50.640 --> 00:31:52.519
you know, you get up in the morning, to the day,

530
00:31:53.160 --> 00:31:56.640
go to bed at night. You know, risks. But you

531
00:31:56.759 --> 00:31:59.720
can reduce one of the risks out there, risk of

532
00:32:00.039 --> 00:32:02.119
it on your business. You know, the I R. S

533
00:32:02.279 --> 00:32:06.599
is always tasked with selecting taxpayers for audits. I mean

534
00:32:06.680 --> 00:32:12.519
it's enforcement. The threat of audit keeps people honest, sometimes

535
00:32:12.920 --> 00:32:16.279
to the extent of not taking deductions that they should

536
00:32:16.319 --> 00:32:21.519
be taking. But the IRS selects taxpayers or audits in

537
00:32:21.720 --> 00:32:27.559
basically two ways. The first is they suspect dishonesty or

538
00:32:27.599 --> 00:32:30.920
practices that don't adhere to the tax law. The second

539
00:32:31.519 --> 00:32:34.759
is random selection of tax returns for audit to check

540
00:32:35.039 --> 00:32:38.640
tax compliance. Now, if you want to reduce the likelihood

541
00:32:38.759 --> 00:32:42.359
of a tax audit or reply to a random audit,

542
00:32:42.799 --> 00:32:46.400
it's important to claim tax deductions and tax credits which

543
00:32:46.400 --> 00:32:50.680
you have documentation in support, but out supporting documents, the

544
00:32:50.720 --> 00:32:55.799
IRS may disallow the deductions or credits or and then

545
00:32:55.920 --> 00:33:00.640
charge interest penalties, even fraud penalties. Now using the risk

546
00:33:01.160 --> 00:33:06.240
one savior receipts too. Don't take deductions that you don't

547
00:33:06.279 --> 00:33:09.319
have support for. You know, we tell people this all

548
00:33:09.359 --> 00:33:11.880
the time when we've seen it. You didn't do your bookkeeping,

549
00:33:12.000 --> 00:33:15.319
you gave around numbers, round numbers is going to be

550
00:33:15.440 --> 00:33:19.440
a big target in your business. Using numbers that are

551
00:33:19.480 --> 00:33:24.240
disproportionate to what your business is. The IRS computer systems

552
00:33:24.519 --> 00:33:30.400
randomly choose people, and sometimes it's based on percentages. I'll

553
00:33:30.400 --> 00:33:32.200
give you a good example. And we're going to come

554
00:33:32.200 --> 00:33:33.640
back and we're going to talk about pre dams in

555
00:33:33.680 --> 00:33:37.000
a minute. But somebody came in. They did one hundred

556
00:33:37.000 --> 00:33:40.119
and fifty thousand dollars. I'm using rough numbers here and

557
00:33:40.279 --> 00:33:45.400
growth striking income. But they claimed that they spent sixty

558
00:33:45.559 --> 00:33:50.799
thousand dollars in meals while on the road. Now that's

559
00:33:51.079 --> 00:33:55.200
really absorbing it and really doesn't pass the smell test.

560
00:33:55.519 --> 00:33:57.799
We had to ask them how many nice were you

561
00:33:58.079 --> 00:34:00.960
on the road? You know? And he sits there and

562
00:34:01.000 --> 00:34:02.720
looks at us and says, well, you know, I was

563
00:34:02.759 --> 00:34:06.119
on the road three hundred days. Okay, you were spending

564
00:34:06.160 --> 00:34:08.800
two hundred dollars a day in food? Well, I had

565
00:34:08.800 --> 00:34:10.880
to order out and I had it uber to my

566
00:34:11.000 --> 00:34:13.559
truck every night that I every day that I stopped.

567
00:34:13.880 --> 00:34:16.239
That's still quite a bit of money. It does not

568
00:34:16.559 --> 00:34:22.440
make any sense. What'ssoever? Well, am on a health kick. Okay,

569
00:34:22.840 --> 00:34:25.519
that still doesn't make any sense. Thank god, we weren't

570
00:34:25.559 --> 00:34:29.320
doing the bookkeeping form. We actually documented actually taking per

571
00:34:29.360 --> 00:34:31.440
diems for the nights that are on the road instead

572
00:34:31.480 --> 00:34:34.960
of taking what he claimed that he could support. But

573
00:34:35.000 --> 00:34:38.519
he said he paid cash. You know, life is life,

574
00:34:38.840 --> 00:34:40.559
But those are the kind of things that get you

575
00:34:40.800 --> 00:34:45.599
into trouble. So keep your receipts, keep your cancel checks,

576
00:34:46.000 --> 00:34:48.960
keep your log books or any other valid proofs of

577
00:34:49.119 --> 00:34:52.719
payment documentation, and keep it for a minimum of three years.

578
00:34:52.920 --> 00:34:55.760
Don't take deductions that you don't have support for. Don't

579
00:34:55.800 --> 00:34:58.800
take deductions that are out of the norm out there.

580
00:34:59.199 --> 00:35:02.280
You know, if you deducting five thousand dollars in office

581
00:35:02.320 --> 00:35:05.320
supplies for paper and pencil and stuff like that, and

582
00:35:05.360 --> 00:35:09.360
you're a trucker, probably out of the realm. So kind

583
00:35:09.360 --> 00:35:12.199
of keep an eye on what those expenses are. One

584
00:35:12.239 --> 00:35:17.599
of the expenses that truckers get that is unique to

585
00:35:17.679 --> 00:35:22.280
their industry is per deemed. Now, unfortunately, a W two

586
00:35:23.039 --> 00:35:28.119
driver cannot take per diems because it was removed in

587
00:35:28.199 --> 00:35:33.679
the Trump tax cuts of twenty seventeen. Unreimbursed business expenses

588
00:35:33.840 --> 00:35:36.480
that W two truckers used to be able to take,

589
00:35:36.840 --> 00:35:39.519
they can't take them. Their company can pay the per

590
00:35:39.599 --> 00:35:43.159
diems that are non taxable, but they can't take this

591
00:35:43.400 --> 00:35:46.920
as a tax right off on their taxes. But as

592
00:35:46.920 --> 00:35:50.519
an owner operator Trump driver out there, per diems is

593
00:35:50.639 --> 00:35:54.559
one of your largest tax deductions you get to take.

594
00:35:55.079 --> 00:35:58.920
In the easy terms. Per diem deduction is a tax

595
00:35:58.960 --> 00:36:04.440
deduction to the IRA allows to substantiate ordinary and necessary business,

596
00:36:04.480 --> 00:36:09.960
meal and incidental expenses paid or incurred while traveling away

597
00:36:10.320 --> 00:36:14.199
from home. You know right now that had been increased

598
00:36:14.440 --> 00:36:18.079
October one, twenty twenty four, to eighty dollars per day

599
00:36:18.280 --> 00:36:21.960
in the continental US. Now you may hear the amount

600
00:36:22.039 --> 00:36:24.760
of the deduction quota is sixty four because the IRS

601
00:36:24.880 --> 00:36:27.880
only allows you to take eighty percent of per diem.

602
00:36:28.239 --> 00:36:30.960
So there are changes as the IRS is going through it.

603
00:36:31.000 --> 00:36:34.360
A couple of years, the IRS allowed one hundred percent

604
00:36:34.679 --> 00:36:40.320
per diem, but it's now eighty percent of that eighty dollars. Now,

605
00:36:40.400 --> 00:36:44.239
the per diem rate last year from January one, twenty

606
00:36:44.280 --> 00:36:48.760
twenty four through September thirtieth was sixty nine dollars. So

607
00:36:48.880 --> 00:36:51.719
you have to for twenty twenty four, can you know,

608
00:36:51.880 --> 00:36:55.440
calculate your per diems the number of days on the

609
00:36:55.519 --> 00:36:58.239
road from January through the end of September and then

610
00:36:58.320 --> 00:37:01.840
October through the end of the year. So you know,

611
00:37:02.159 --> 00:37:04.800
if you're an uner operator, you get to claim the

612
00:37:04.800 --> 00:37:07.119
tax deduction for each day that you're away from your

613
00:37:07.159 --> 00:37:10.199
tax home. And you've got to have a home otherwise,

614
00:37:10.239 --> 00:37:12.599
if you don't have a home that you're maintaining and

615
00:37:13.000 --> 00:37:16.360
covering expenses for it, you're now considered a tax turtle.

616
00:37:16.760 --> 00:37:19.599
Your home is your truck, and you're not getting these

617
00:37:19.719 --> 00:37:23.760
per diems. So you got to calculate the days that

618
00:37:23.800 --> 00:37:27.079
you depart and the days you arrive home. And you

619
00:37:27.159 --> 00:37:30.719
only get a half day for the day of departure

620
00:37:30.800 --> 00:37:33.239
and the day of arrival, and then you get a

621
00:37:33.280 --> 00:37:38.239
full day for everything else in between. So, you know,

622
00:37:38.280 --> 00:37:40.280
it's one of those things you got to make sure

623
00:37:40.400 --> 00:37:44.000
you're you're calculating and you're going through and doing the

624
00:37:44.119 --> 00:37:46.719
correct way. One of the other things that you can

625
00:37:46.760 --> 00:37:52.320
take advantage of appreciation Section one seventy nine. Now, you know,

626
00:37:52.599 --> 00:37:54.639
we've kind of got to look at this thing and

627
00:37:54.679 --> 00:37:57.880
weigh this thing out because you know, I've heard a

628
00:37:57.920 --> 00:38:00.320
lot of people that are in this tax enter street

629
00:38:00.320 --> 00:38:01.920
and they look like a hero tell you to go

630
00:38:01.960 --> 00:38:04.199
buy a new truck because they're going to save you

631
00:38:04.280 --> 00:38:06.239
a bunch of money and your taxes. Well, what they're

632
00:38:06.239 --> 00:38:09.719
doing is using your depreciation to make them look good.

633
00:38:10.400 --> 00:38:12.639
The first thing we tell our truckers and ask them

634
00:38:12.760 --> 00:38:15.480
is you know, is there a reason or a purpose.

635
00:38:15.559 --> 00:38:17.559
Maybe you have a lot of repairs that you're doing

636
00:38:17.559 --> 00:38:20.559
in your truck over and over again. Yes, maybe it's

637
00:38:20.599 --> 00:38:22.360
a good time to be in that truck. Maybe you

638
00:38:22.400 --> 00:38:26.320
need better gas or fuel knowledge. Maybe a newer truck

639
00:38:26.360 --> 00:38:29.000
would provide that. Maybe you're going to be transporting in

640
00:38:29.079 --> 00:38:33.039
that gide awful state that has rules about emissions that

641
00:38:33.519 --> 00:38:35.639
are above and beyond anybody else, and you've got to

642
00:38:35.639 --> 00:38:38.159
have a newer truck to be able to go and

643
00:38:38.280 --> 00:38:42.639
haul in that state. These are all good business reasons

644
00:38:42.679 --> 00:38:47.599
potentially to get a newer truck and then take depreciation,

645
00:38:47.800 --> 00:38:51.039
whether it's Section one seventy nine or bonus depreciation. We

646
00:38:51.119 --> 00:38:54.559
look at that. You know, Section one seventy nine is

647
00:38:54.760 --> 00:38:59.320
basically using the first year expensing, meaning that you get

648
00:38:59.360 --> 00:39:03.119
to deduct long term asset here currently now. As one

649
00:39:03.159 --> 00:39:05.519
of our other clients, we advised them against using Section

650
00:39:05.639 --> 00:39:09.440
one seventy nine because they were looking to shut down

651
00:39:09.480 --> 00:39:12.679
their business and he was going to become a W

652
00:39:12.760 --> 00:39:15.639
two driver. They said, no, we want the tax savings today.

653
00:39:16.119 --> 00:39:18.320
Got them their tax savings. In the next year, they

654
00:39:18.360 --> 00:39:22.880
sold their truck and subject to ordinary income, capital gains

655
00:39:22.880 --> 00:39:26.480
on all of that and owed a lot of taxes.

656
00:39:26.960 --> 00:39:31.119
Not extremely happy, but they didn't listen when we were

657
00:39:31.159 --> 00:39:34.639
telling them what was going to happen. And now they

658
00:39:34.719 --> 00:39:37.239
owe taxes that are out there, so you've got to

659
00:39:37.280 --> 00:39:41.079
look at it. You know, there are thresholds, there are maximums.

660
00:39:41.159 --> 00:39:43.360
Most of the trucking companies we know are not going

661
00:39:43.400 --> 00:39:45.519
to hit them, and most of them aren't going to

662
00:39:45.559 --> 00:39:49.599
be phased with the phase out out there. Now. If

663
00:39:49.599 --> 00:39:52.880
you happen to be running five, six, ten, twenty trucks, yes,

664
00:39:52.960 --> 00:39:55.039
your business is probably going to have a lot of

665
00:39:55.440 --> 00:39:58.719
gross income, a lot of net income, and you know,

666
00:39:58.840 --> 00:40:03.079
maybe you might hit those thresholds. The one good thing

667
00:40:03.119 --> 00:40:05.519
about section one seventy nine, you don't have to claim

668
00:40:05.559 --> 00:40:08.079
the full amount. It's up to you decide how much

669
00:40:08.119 --> 00:40:12.639
you're going to deduct under that section one seventy nine.

670
00:40:12.960 --> 00:40:17.159
And but whatever amount you don't claim must be depreciated

671
00:40:17.199 --> 00:40:20.920
over the useful life of the asset. So the main

672
00:40:20.960 --> 00:40:23.480
advantage of one seventy nine unless you take a higher

673
00:40:23.519 --> 00:40:29.519
deduction immediately. By receiving higher depreciation deduction deduction today, you

674
00:40:29.559 --> 00:40:34.239
will get to reduce your current tax bill. It's especially

675
00:40:34.320 --> 00:40:36.559
helpful for a new business that may be having cash

676
00:40:36.639 --> 00:40:40.960
flow problems. Some of the disadvantages of this your income

677
00:40:41.039 --> 00:40:43.599
increases to move you to a higher tax rate by

678
00:40:43.639 --> 00:40:47.199
accelerating your business deductions, you'll have fewer options in the

679
00:40:47.199 --> 00:40:50.599
future to reduce your taxes when your business might be

680
00:40:50.639 --> 00:40:53.920
in a higher tax bracket. You also have a higher

681
00:40:54.039 --> 00:40:58.679
risk of recapture of that depreciation when you sell that

682
00:40:58.800 --> 00:41:02.679
long term asset. Things you've got to consider and look at.

683
00:41:03.079 --> 00:41:07.079
Proper planning is what's going to make and help you

684
00:41:07.199 --> 00:41:12.800
make the best possible decision on your appreciation. You know,

685
00:41:13.440 --> 00:41:15.880
we enjoy talking about taxes. What do you want to hear?

686
00:41:16.079 --> 00:41:18.880
What questions do you have? Hey, if you go over

687
00:41:18.920 --> 00:41:21.280
to the Trucker Tax Tools Trucker tax Tools dot com,

688
00:41:21.320 --> 00:41:23.559
go to our contact page or go to our email

689
00:41:24.280 --> 00:41:27.559
support at Trucker tax tools dot com. Send in your questions.

690
00:41:27.639 --> 00:41:30.559
I'll address you questions next week right here on this show,

691
00:41:31.039 --> 00:41:34.960
because we're here every Monday, ten am Eastern Time on

692
00:41:35.360 --> 00:41:38.400
tax Talk for You dot Com. Hey, if you go

693
00:41:38.400 --> 00:41:42.079
over to Facebook, follow us over there, never miss an episode.

694
00:41:42.280 --> 00:41:47.639
We get to talking about taxes, trucking owner operators, small businesses,

695
00:41:48.119 --> 00:41:51.599
tax relief if you owe the irs. Hey, we've got

696
00:41:51.639 --> 00:41:55.519
a great podcast called Tax Solutions one oh one. You

697
00:41:55.519 --> 00:41:58.199
want to know how to solve tax problems? Hey, that's

698
00:41:58.199 --> 00:42:01.400
a great place to start. We'll go to Trucker tax

699
00:42:01.400 --> 00:42:04.280
tools dot com. Let us know, Hey, what's your problem,

700
00:42:04.639 --> 00:42:07.440
what issues do you have, and we will come up

701
00:42:07.440 --> 00:42:11.480
with a way to solve those for you as quick

702
00:42:11.519 --> 00:42:14.639
as possible. Hey, we enjoy bringing these things to you.

703
00:42:14.639 --> 00:42:17.119
You got to let us know what we can do

704
00:42:17.559 --> 00:42:20.440
to help you. If you call us a trucker tax

705
00:42:20.440 --> 00:42:23.840
Tools eight seven seven nine sixty six two four seven

706
00:42:23.960 --> 00:42:27.000
seven again eight seven seven nine sixty six two four

707
00:42:27.079 --> 00:42:31.079
seven seven, you can join our fleet of truckers that

708
00:42:31.280 --> 00:42:34.519
do bookkeeping with us. We've been so privileged to help

709
00:42:34.920 --> 00:42:39.599
thousands of truckers over the last ten years with their bookkeeping,

710
00:42:39.800 --> 00:42:43.679
with their tax problems and tax solutions. We bring you

711
00:42:43.719 --> 00:42:46.440
that information right here at tax Talk for you to

712
00:42:46.480 --> 00:42:48.840
connect with us here. Thank you for being with us.

713
00:42:49.239 --> 00:42:53.760
You have a god bless and very glorious safe week

714
00:42:54.119 --> 00:42:56.800
in all that you do, and we'll see you next Monday,

715
00:42:57.159 --> 00:42:59.880
ten am Eastern time right here in W four CY

716
00:43:00.119 --> 00:43:03.400
Radio and tax Talk for you dot com. Thanks again

717
00:43:03.519 --> 00:43:05.280
for tuning in. Have a great week.

718
00:43:06.920 --> 00:43:10.079
Are you an individual or business that wants to understand

719
00:43:10.159 --> 00:43:13.559
taxes and how they affect you? Are you looking for

720
00:43:13.599 --> 00:43:19.000
specific tax advice? For self employed, business owners and truckers.

721
00:43:19.599 --> 00:43:23.639
Are you behind on taxes and your bookkeeping? Are you

722
00:43:23.760 --> 00:43:26.719
dealing with the irs and ready to have some relief,

723
00:43:27.559 --> 00:43:31.360
Then you need Tax Talk for You, hosted by tax

724
00:43:31.440 --> 00:43:36.360
and trucker expert Barry Gfouer EA. Tune in ten am

725
00:43:36.559 --> 00:43:40.559
Eastern Time every Monday right here on W FOURCY Radio

726
00:43:40.639 --> 00:43:43.920
and Talk for TV. Don't forget to check this and

727
00:43:44.079 --> 00:43:48.639
past episodes at tax TALKFORU dot com. See you next

728
00:43:48.639 --> 00:43:53.239
week at W fourcy dot com.