irs audit bank statement

Discussion in 'Trucker Taxes and Truck Financing' started by 4noReason, Jan 13, 2020.

  1. Studebaker Hawk

    Studebaker Hawk Road Train Member

    Oct 18, 2010
    NW Indiana
    There are 2 parts to this equation.
    1st is the basic bookkeeping. Keeping track of all of the revenue(income) you generate, in most cases quantified on one or more 1099-MISC forms you get from the carriers you have been leased to. If you use the truck on your own, then of course you would include that income. ;) Then the old shoebox method of keeping track of expenses, variable costs like fuel, tires, repairs(except major overhauls) fixed costs like phone, insurance etc. Receipts go into the box, later separated by date, type of expense(accounting dept) and totaled.
    Now if I have already confused you by using terms like fixed and variable costs, you either need to study up on the subject, or get really friendly with an accountant who is familiar with what expenses are GAAP(Generally Acceptable Accounting Procedures) in the trucking industry. There are many.
    2nd are the tax-IRS implications of all of this. Not all accountants are tax experts in the trucking field. Maybe they can add up the numbers, have a vague idea of what is deductable(A Huge Grey Area) and what is not.
    Although you might have an accountant that "can do your taxes", he may have little or no idea about the rest of your individual tax situation. You financial well being depends on the entire picture.
    These days every 1040 form/Schedule C/other forms are put through an audit when you file, done either electronically or even if you send the paper forms in, they are scanned. On your schedule C you will notice at Box B a 6 digit number indicating the type of business you are in, from running a bake shop to a blast furnace, and everything in between. The IRS collects all of those numbers, and compares yours to the averages. Show too high an expense in per diem? Too many repairs? too much depreciation? will kick the form out for a human to look at. They also compare the 1099's you get from financial institutions(interest, investment trades etc.) In other words they have a real good idea of who you are in terms of money, their algorithms are the best.
    I like to talk to the guy who is doing mine. Me. With a little guidance from a couple of professionals I trust. Just because you turn it over to someone else doesn't mean you don't have skin in the game. For the same reason I do most of the repairs/maintenance on my own truck. I like my work.
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  3. KingG239

    KingG239 Medium Load Member

    Dec 12, 2014
    Jamaica NY
    Is ATBS still good to use in 2020?
    Upinsmoke Thanks this.
  4. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

    Jan 13, 2013
    SW Arkansas
    It wasn't any good in 2008 when I used them. I doubt if they got any better since.
    Opus, KB3MMX, Upinsmoke and 1 other person Thank this.
  5. Kshaw0960

    Kshaw0960 Heavy Load Member

    Jun 17, 2018
    I’ve been an owner op for years and I always show about $20-30k a year. However most of my income goes back into the business and isn’t for myself. Instead of paying myself for example $90k a year, I would buy another truck, or trailer, or something else. Currently we at 3 trucks and 3 trailers.
  6. Upinsmoke

    Upinsmoke Medium Load Member

    Feb 26, 2019
    It's not very hard to show a loss in trucking.
    Truck payment and fuel pretty much puts you right there..lmfao
    Rubber duck kw Thanks this.
  7. Rubber duck kw

    Rubber duck kw Road Train Member

    Dec 9, 2017
    I'm always trying to figure out where the money I made went.
    Upinsmoke Thanks this.
  8. 4noReason

    4noReason Road Train Member

    Nov 29, 2012
    ya but my thing is how do people then get house loans.
  9. KB3MMX

    KB3MMX Road Train Member

    Dec 29, 2014
    Orrstown, PA
    They often don't if they play the game like that it looks like they're poor AF.
  10. Eggroll'n Trucker

    Eggroll'n Trucker Light Load Member

    Feb 17, 2018
    My plan is to get 2 solid years on W2 for the house which I'm in the process of getting it built now! Then after I move in, then go O/o and make those numbers look like I'm poor AF lol

    But if you're an O/O trying to get a house. You need 2yrs of good income (on paper) or 40-50% down payment
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