When are estimated tax payments due?
The following summarizes some of the important filing dates for individuals and businesses using a calendar year end. When the due date falls on a weekend, the next business day becomes the due date.
Form 2290 must be filed for each month a taxable vehicle is first used and driven 5000 miles or more on public highways during the current period. The current period begins July 1, and ends June 30 of the following year. Form 2290 must be filed by the last day of the month following the month of first use (Example: If you purchase your truck October 5 it is due by November 30). The tax due for the full year is $550. If you acquire a vehicle and use it on the public highways in any month after July, you are liable for the tax at a prorated amount.
How often are my estimated tax payments changed?
Check cashing fees
Film for damage claims
Log book covers
Can I deduct deadhead miles?
Should I buy or lease my truck?
We review your estimated tax payments on a monthly basis. Every time you send in an envelope, we update your financial projections. This allows us to estimate your taxes accurately. For this reason, it is very important to keep up-to-date on the envelopes and to notify us if your tax situation changed (i.e., you become a trainer, you may no longer claim a child, your marital status changes, etc.)
Air fare (home to job)
Boots (steel toed or rubber)
Buffer (for shining truck)
Bus fare (home to job)
CB radio and repairs
Drivers License (CDL)
First aid supplies
Money order charges
The answer is you already are deducting deadhead miles if you are giving us all of your expenses when you are on the road. Since you are giving us all of repairs, fuel, insurance, supplies and other trucking expenses, we are taking the deadhead miles into account. So if you drive 1500 miles and are only paid for 1400 miles, as long as we have all the trip expenses for the 1500 mile trip, we are deducting the deadhead miles. There are no additional deductions for deadhead miles.
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SUGGESTIONS FOR DEDUCTIBLE EXPENSES
This is question is dependent on a number of circumstances and variables that are not in your control. The biggest question is what is the resale market for trucks. If we could predict the future on this issue, the buy versus lease question would be much simpler.
What is certain over the full term of the lease or purchase, the tax deductions and out of pocket expenses are going to be very similar. A purchase may allow us to take advantage of advanced depreciation, thus you could expense more of the purchase price in the first year. This allows us to be more flexible in the amount of deductions in the first year.
A lease is sometimes easier to get out of, thus is a more conservative approach to being an owner-operator.
If the lease is considered a capital lease (you own the truck at the end of the lease) the tax consequences are different from a lease where ownership is not going to transfer.
Our advice to you is to cut the best deal, whether it is a lease or purchase. Review the interest rate or imputed interest rate, payment amount, and terms to see which deal works the best for you from a cash out of the pocket standpoint.
10410 S 144TH ST STE 3
OMAHA, NE 68138
Phone: (402) 891-1040
Fax: (402) 861-0939
When are the 2290 (Heavy Highway Vehicles Tax) due and do I owe for the 2290?
Truckers Professional Services
Larsen & Associates
Bookkeeping - Tax Preparation - Incorporation - Financial Planning
"Handling All Your Financial Needs"