Quote:
Originally Posted by rdkatwell  Hello everyone,
We are new to the O/O world. Hubby recently went O/O and leased to Crete, He was an employee with them. He's still doing dedicated with them. He is leasing the truck from them. So far so good.. but I have a question.
How do you show your income? For yourself? Not the business? Also, I need to find some type of software where we can print paystubs at least to show our family's income.
He gets statements weekly from Crete that show his gross amount, and then after his truck payments, insurance, fuel, all that stuff comes out, it shows amount owed to operator. The thing is... this is going into a business checking account he opened in his name for the "business".
His plan for us, was to calculate our total expenses needed weekly for bills and such, and then pay himself out of the business account to cover our personal bills (by transferring this into our family's personal checking account).. but how can we show this on paper for tax time and for other companies that need to see proof of income?
For example, since he's went O/O we lost our health insurance, I am currently seeking insurance for our family (we have 2 small children) but in the meantime I am going to apply for state funded insurance for them and they have to have proof of income, and it's based on income. So therefore, I can't take them the statements from Crete, cause that is not necesarrily all personal/family income...some has to be set aside for the business...
any adivse? Thanks. (I think I may be making this more complicated that it needs to be) |
The guys have pretty well handeled many of the things.....
OK here is how I do this and we have been o/o for 26 years. Side note I also use quicken.
1) your income wil show up off off the schedule C. That profit amount will show up on a line on your 1040 (am on the road don't have the forms in front of me or I would tell you what line) THAT is your income. No matter what you write out as a form of pay checks your income will be the proffit plus whatever you have written him at the end of the game. I have personal account that I write some checks to him and dep and some to me a I am considered an employee and by folowing and IRS approved procedure the truck covers all of the medical reimbursments and the truck can write it off as an expense where a prsonally I can only deduct a % of the mdical cost.
2)When I enter an expense in my quicken business some things are labeled as personal and that along with any checks I make out to him as a "wage" so to speak, are used to give me an idea of about what I need to be estimating for my quarterly 1040 estimates. I look at that along with the revenue for the quarter and I can get a fairly good idea if I need to increase my payment or not. I have never had to actually worried about an actual pay stub.
3)The income shows up on your tax form and remember you real income will be the proffit from the truck not the amount you write out in a pay stub. Mainly because you are listed as a sole proprioter and yes you have to have a FEIN# when it comes time to file your 2290 HUT.
4) when leasing to a new co. they asked for copies of the 1099's and also the bank just wants tax records the schedule C to see how the business is doing. (truck financed at the bank)
BUT MOST IMPT. get started paying the quarterly estimates because it is murder if you do not! Trust me.....
10.26.2008
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