$10,000 owed in fed and state tax too much?

I'd check with your tax guy, but you may be able to capitalize an inframe or transmission, which would allow you to depreciate it over several years instead of a one time expense. This could be useful if the truck is fully depreciated and you want some additional deductions in later years.

 

That has to do with our wonderful govt thinking an income over poverty level makes ya rich and able to afford to support more of their over the top spending. The more you make the more they take.

 

I'm making payments to the IRS and state franchise tax board for a previous year back taxes and was hit pretty hard in 2011 as I had taken a trust fund disbursment and bought my truck. But for 2012 and 2013 the write offs and depreciation are causing my income to show a net loss in the thousands of dollars so there will be no tax owed for those years and I can even carry those losses forward into 2014 to pay what I surely will owe bigtime when the depreciation schedule dies off. By then also I'm will have the back taxes all paid off as well. I've been walking a fine line the last couple of years to run just enough to eat and pay bills all the same time to keep the truck below 500,000 miles so it will maintain max value (former trainer truck so I slowed it down to let other trucks in its 'class' catch up on miles). From here, my strategy is to hammer down max miles max revenue.

 

since I am not at home(except for this broken foot thats been 5 months non healing)I have someone staying at my house and use my home as rental property.since I only charged her 50.00 a month(which I really dont charge her anything)I got alot of deductions and for the first time I got a refund

 

When you get up in the $50,000 net bracket you are paying close to 17% in personal federal tax alone not to count state and your business taxes. It sounds like you didn't prepare for tax time. Set up a tax savings account and make quarterly payments and then you won't be shell shocked come tax time. But if you feel he didn't do his job correctly you can always have someone else look at your situation and even file an amendment if necessary.

$71,000 in repairs? You need to get rid of that money drain.

 

The way I read It, Repairs were $10,000.........But I could be wrong..........

 

You need a new accountant. I grossed double that and didn't pay that much.(of course not from trucking alone, I personally have 2 businesses I collect from as well).

 

Yes fuel was $71,000 for this guy and $10,000 for maintenance/repairs. I had similar numbers last year $69,000 fuel $10,500 maintenance/repairs.

 

I agree with Tallman, you got off lite, I'm contractor aviation mech and I made $30 G's less. My taxes from my gross was about $22 G's. I think I will get about 40% of that back. So you did not pay enough into it or you did not have enough deductions. Check your records again for expenences you may have missed. IE, clothe, tools, mileage, fuel, over night, phone, medical, meds, donations, college payment and all associated expenses. Training, industry books, magazines, interest on property and loans. The list goes on. Remember your tax advisor is going to go buy what you tell him and ask questions. As a business owner/owner-op you have deductions. I'm just learning the trucking business, but I have been doing a lot of research on Laws Federal and State, IFTA, IRP, Reg's, EPA, DOT, TAX form 2290 and the FMCSA. And if I didn't meantion it, please add it to your response, it would be greatly appreicated. Go Green, maybe but im looking to buy pre-go green reg, unless someone out their has some good advise for me.

 

self employement taxes
http://www.irs.gov/uac/Schedule-SE-(Form-1040),-Self-Employment-Tax


quarterly tax filing and self-employment information
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

hope that helps.

Your individual state has a similar web page with like information.
In Minnesota, it is here.
http://www.revenue.state.mn.us/individuals/individ_income/Pages/Estimated_Tax.aspx

I did a google search for "minnesota quarterly tax schedule" to find that page. Put in your state for your personal information.

Since I can print out a profit/loss statement in quicken at anytime. Doing these forms take about 10 minutes a time to complete. It's not that hard if you have a good accounting basis to get reports from.

And I don't see that in Excel. Too clunky compared to at least Quicken Home & Business.