Articles

Q: How much in income taxes will I owe next year?  A: You already have told us that you are having a good year. You’re gross revenues are up while your fuel and repairs are down and you have a large amount of cash on hand. You need to have an income tax projection prepared […]

Q: I need to replace my equipment as repairs and downtime are mounting. I’m confused about obtaining a loan. How should I pay for the purchase? Where do I get a loan?   A: Once you have decided what you want and know the cost you have to decide whether to buy or lease. If […]

Q: A potential client, John, comes to the office because he failed to file returns for 2013 or 2014.  John is due a $1000 refund for 2013 from federal income tax withholding on Form W-2 even though his income was below the filing level.  He owes $1000 for 2014.  He asks, “Can I offset the […]

Q: I am an over the road trucker operating as an Independent sole proprietor and thinking about becoming a corporation. Is that a good idea?   A: There are two major reasons why one should incorporate their business. One is to save on income taxes and the other is to protect your assets. Your earnings […]

Q: John and Sally asked me, “We filed a joint extension Form 4868, Application for Automatic Extension to File our Individual Income Tax Return. We have now decided to file married, filing separately. Can we do that? A: Yes. Joint extension requests apply equally to each of you so if you decide to file married […]

Q. I have been hearing a lot about taxpayers preparing their own tax returns. Are they doing the right thing? Should I be preparing my own tax returns and save the preparation fee? A: Doing your own tax return can be an extremely dangerous endeavor. It’s not the accuracy that I’m worried about (computer generated […]

Q: How can I justify my cash payments to my lumpers? A: You need to maintain a log showing the name, address and social security number of the person you have made the payments to. If that particular person earns $600 or more from you, you have to issue a 1099 to them at the […]

Q:  I understand it’s time to start gathering my tax information for 2016. But can you tell me what will the per diem rate be for 2017? A:  Good question. Not only are we discussing 2016 income taxes, it also is a good time to start planning for 2017. The per diem daily rate of […]

Q: My trucking business has been doing well and I have accumulated savings over the years.  I’m considering paying off my mortgage.  Is that a good idea?   A: As people age and/or retire, they often discuss and read about paying off their mortgage.  “I own my own home, free and clear.”  “No more monthly […]

Q: Roger, an owner-operator is concerned about how much he will owe when he files his 2016 tax returns. “I have more money now compared to last year.  I think my profit is up.  I don’t know what to do.  Should I take the last month of the year off to reduce the amount I […]