Do yall pay every year?

You still cant get around it.

 

You get a deduction for one half of the self employment tax at 15.3%.

You can have losses and not pay a dime of Self Employment tax. The intent to make a living has to be there or you can have problems. Many people lose money for the most part and as long as they are showing the proper steps, the IRS does not come after them.

 

As long as all the boxes are filled in correct you generally don't have a problem. One big thing is report all of your income, just cause you don't get a 1099 don't mean others aren't report your SS# . If you file a w-7 report it.
CHRW is one that don't send 1099's. I wouldn't work someone on 1099 without a written agreement. Some of these guys will come back and try and claim soemthing different thinking you'll have to pay their taxes which is wrong. Employer is only responsible for his share, employee liable for his.

 

I have been on audits where they have disallowed activities and classed them as hobbies.

 

I take it you have worked as a accountant? One year a few years back I owed them like less than thousand. I went to set up payments had fifty dollars with me, guy gave half back said it looked like I could only afford twenty five. It was paid off next year wife had job then and they just gobbled it all up.
I try and justify all my deductions I take.
The audits can be one sided I have heard thats why they have the taxpayers advocate and tax court.

 

Over 20 years and been an Enrolled Agent to Practice Before the IRS since 1985.

 

My buddies wife works for his llc. Lol she gets a salary on paper that way it's less profit for his company.This guy is a genius when it comes to taxes. I am tax stupid and just going him

 

i have used h&r block before uncle same said i owed 10,000 dollars but when they were done they got it down to 850.00 dollars

 

Nice call. Bzzzzzzt!

Well, I'm no accountant, but I do know that you can not write off 50% of your home, water, and electricity. The percentage for a home office is allocated by how much square footage you devote to the office vs. how much total square footage the house is.

50% is absurd. Your accountant should know this. You are just sending up a flare begging to be audited.

The cell phones you could do, especially if the wife uses hers to conduct business with you while you are on the road.

The 1099 isn't allowed. It's your equipment under your rule. You driver is not a sub-contractor, he is an employee that should be getting things like SSI and workman's comp coverage.

If your "accountant" knew what she was doing, she would know how to utilize your per diem (a legal and a powerful tool to NOT pay tax), know how to recommend you pay your employee (repeat..... employee), and maximize your deduction while providing him a legitimate source of income and something to look forward to when he's old and gray.

Good. If the OP doesn't want the burden of carrying an employee the correct way, then stick to a one truck operation. Part of the reason you withhold taxes is to be able to make your quarterly payments. The 1099 road is the lazy road, and it is also the wrong road.

I went through the same thing with a family business years ago when taxes were not paid on the other end, and the IRS came swooping in on me when I started filing returns again. It wasn't pretty, and I remember sitting there trying to sift through 1099's and fragmented records at best putting it all together. And then I had to do an offer in compromise and borrow money which took me a long time to pay back. Play now, pay later.

Never again.

Trucking isn't a huge get rich business to begin with. Good record-keeping, and using the law in your favor provides plenty of legitimate deductions. It just blows my mind that a so-called accountant isn't taking per diem for overnight travel. Sounds to me like you paid her about $399 too much.