Site Navigation

Your Account

Choose Language

big quarterly tax bill

Ok I've bee an oops since April first and I just got my first quarterly estimates. My bill to the government is 5400 and 1500 to ga does that sound crazy to anybody. It is four months of income because it didn't get one for last quarter, I'm using atbs and after reading all the tax posts I've missed some receipts but still dang

Answer this question I have this problem too

Is this a good question?

Score 0

Comments:

It all depends on your net during that period and the tax structure you have yourself in. I cut a lot of taxes by being an LLC with a S Corp tax structure. Last year, I saved about $6200 in taxes. With this setup, you become a W-2 employee of your operation. You pay yourself a reasonable salary per week, in my case is about $750 and file payroll taxes on that monthly or quarterly. You pay income tax and SSI on that. The net your company makes beyond that, is treated as distribution to you, since you are the owner, and that is only subject to income tax. No SSI tax on distributions. Saves a bunch of money for me. Only cost me $150 to set it all up.

by

Add a comment

2 Answers

That sounds a little high as far as the federal goes cause I figure 1000 dollars a month for myself and comes out just about right. State taxes I don't know cause I live in a state with no state income tax

Was this answer helpful?

Score 0

Comments:

Ditto. I usually go with $1000 a month and that comes in pretty close. Owe more sometimes, owe less sometimes. I don't work out a complete 1040 each quarter to get it down to the exact penny.

by

Add a comment

Need to find you another accountant, with deprecation on your truck and all the deductions you should have. Yes it is crazy I've never paid anything close to that.

Was this answer helpful?

Score 0

Comments:

Ok thanks for the come back I've talked to my guy and I'm gonna write off 10000 on the truck brought it down to 2800 ga still a grand at least I know our government will spand it wisely

by

You can depreciate your truck over five years I think which will help you over a longer period of time. Keep every receipt for anything you purchase for your truck or business. Any big items you purchase, do so with your business in mind. it's a big game and if you don't learn how to play it you will lose. Having an accountant that understands the trucking business is important in knowing what you can deduct. Good luck.

by

It's 3 years

by

How long do you depreciate a Semi Truck?

Semi-Truck tractors and trailers must be depreciated for 5 years.

Side Note: I had some confusion on this issue early on, because a number of accountants had recommended the 3 year election on trucks and the 5 year on trailers while others recommended 5 years on both. I wanted to make sure I had my facts straight so I looked through the laws and instructions from the IRS and found that the confusion lies largely in the fact that a "Tractor" is a 3 year asset, while a "Truck" is a 5 year. The majority of drivers refer to their truck as a tractor-trailer, so in being told that the truck is a tractor, the accountants are classifying the trucks as tractors. Now, you could debate the problems with the English language with the IRS.

I've done three trucks, all for five yrs no problems, same amount of money just over a longer period of time...... it's up to you but I got trucks....

by

My CPA had this conversion with the IRS already and it is considered a tractor so I get 3 years on tractor 5 years on trailer. I've heard what your talking about so I guess it comes down to how they want to interpret it

by

Add a comment

Add your answer

Your will be eternally grateful.
View Statistics:

Past 24 Hours: 0

Past 7 Days: 0

Past 30 Days: 0

All Time: 253