June 30, 2025 • 45 mins
Tax Planning and Questions – Individual, Business, Farm Ranch and Trucking Taxes! Tax Questions and answers Where to free file, Taxable tips, Tax extensions, filing deadlines, Tax dedcutions, how to amend you tax returns 1040X, 1120, 1120s or 1065. stnadard dedcution 2025, capital gains taxes,
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Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G.
Speaker 4 (00:59):
Foul Hey, welcome man, great Monday morning. This is the
kind of episode that I kind of like, and it
challenges you, a listener, to submit questions, and then it
challenges me to be able to answer those questions. Hey,
this is a test of tax knowledge. Since you've got
(01:22):
questions wherever you're listening, go to the comments section, go
ahead and put your questions in. It's send like share.
You know, the whole works. Let's get the word out
that we're here talking taxes, and we're talking taxes for you.
You know, whether it's individual taxes, whether it's small business taxes,
(01:44):
trucking taxes, and trucker bookkeeping, you name it. Hey, I've
got a bunch of new clients and I would like
to sit here and name them all over at truck
or Tax to some great truckers that have come to
us over the last week, putting Amanda, Robert, David, Daniel, Greg.
(02:06):
I know I'm missing about ten more just off the
top of my head, but those are meetings I have
coming up here in the next few hours with them
to do their initial call and get them all set
up in the bookkeeping and the tax department to make
sure we're dotting the as and crossing the ease. Hey, today,
like I said, we're going to be taking questions. You've
got questions, submit them, we'll get an answer. Talking first
(02:30):
here in this first section about tax planning and how
important planning can be in your business and personal When
it comes to taxes, some people think, you know, hey,
I'm going to show up, you know, in February, March, April,
and I am going to be able to save the
most amount of money on taxes because I've gone to
(02:53):
somebody to prepare my taxes. You know, we're limited in
what we can do after the year is done. And
that means most of the deductions and everything that you've
spent money on can be deducted. And let's say we're
working twenty twenty five and we're getting ready to do
your taxes. If you haven't spent the money, use the
money to find the deductions in twenty twenty five, we're
(03:17):
going to be very limited. Yes, we might be able
to do some retirement accounts. Yes, you might still be
able to contribute to your health savings account if you
have a qualified medical plan. But being able to strategize
with you what you can do throughout the year the
maximize deductions makes it very difficult. Buying a new vehicle
or new tractor or new piece of equipment for your
(03:40):
business can't happen in twenty twenty six and deducted in
twenty twenty five. But if this is a needed piece
of equipment, and we don't make this recommendation strong, you know,
without looking at what's going on in your business. So
this isn't one of these strong recommendations. Everybody should run
out and buy a piece of equipment because I'm going
(04:02):
to be able to take the appreciation and lower my taxes.
But if you didn't need the equipment, doesn't improve your
bottom line, doesn't improve the way you do business, then
you're just spending money. So you run out and buy
a new truck or new tractor, new trailer, a new
piece of equipment, and it costs you one hundred thousand dollars. Yeah,
(04:25):
it could save you, you know, ten, fifteen, twenty five, thirty,
forty thousand dollars, depending on what tax bracket you're in,
and you know, self employment taxes and the whole works.
It could be there, but you're still out the other
sixty thousand dollars. So it may not be the wise
financial decision. It may be the tax decision that you
(04:45):
need to make, but it doesn't make the decision right.
So you've got to put some business sense to everything
you do, even when you're talking about saving taxes, because
you know, yes, our goal here is to minimize the
tax you pay, maximize the profit that you're making, and
(05:06):
you've got to use the scales and the values of
what is going to make sense for you. You know,
some of the things we see in in tax planning
is people rushing out because they hear escorp and escort
can save you money. A rush decision in jumping out
(05:26):
into escorp can cost you thousands instead of saving you thousands. Now,
when they talk about tax savings when they're using an escort,
they're talking about saving money on self employment tax and that,
oh my god, your tax bill is going to drop
over tonight. But what many people don't realize when you're
(05:49):
making this escort election is that you're going to have
additional costs. And an escort election is only really works
consistently if you are consistently making a profit, but then
you're also ready to handle the administrative nightmare that comes
(06:10):
with it. So you're going to have increased costs for
payroll compliance. So you've got to do got to do payroll,
You've got to file the tax forms n W two's
W three, You've got to pay the payroll taxes, So
you're going to pay in the federal withholding that you
(06:32):
withhold from everybody's paycheck, social Security Medicare and the match
of Social Security Medicare, and then you're probably going to
have federal unemployment taxes to that, state unemployment taxes to that,
and then you get down to your now hopefully savings.
Then you're going to have an additional federal filing with
(06:57):
eleven twenty s that is your corporate escorpate return and
then the ke ones that go along with it. Then
I know this sounds bad. You'll have an additional scrutiny
of your business or having a reasonable salary for the
owner that is working in the business. Now, you could
(07:21):
also cause yourself a problem because you could potentially overpay
yourself if you're not profitable enough. So we in tax
planning will weigh out the difference between being self employed
or being a single member LLC report both reporting on
Schedule C versus what your tax liability would be reporting
(07:45):
as an escort and then decide, hey, which is the
best route for you to go and the best way
for your business and whether your business net income is
going to support being an escorp in the model of
the ESCORP and will it continually do that year after year?
(08:08):
So you know, you've got to make sure that you're
doing this, you're timely filing for that es CORP election
and making the right choices. So we sit down and
analyze your last twelve to eighteen months of your business.
We also sit down and with you in forecast the
next twelve months so that your ESCORP timing can be
(08:32):
done correctly. And David, thanks for the question out here.
And man, we're getting started with questions, so it's really
nice and it's great. Should I have a separate checking
account for business and personal? And we tell you absolutely.
One of the first things we do, whether you're a
sole proprietor whether you're a single member LLC, multi member LLC,
(08:56):
whether you set up an inc. So if your x
y Z Inc x y Z Trucking Inc. First thing
we're going to ask you on the phone is about
your checking accounts. And we're then going to ask you
about do you mix business and personal in your checking accounts?
(09:17):
You know, we know life moves absolutely quick. You grab
your business card, you go out for lunch and you
forgot it wasn't a client meeting, or you cover a
expense that should have been on your business card and
you put it on your personal card. You know, life happens.
You can get reimbursed for that, but you can't transfer
(09:40):
the transaction but to the you know, for the IRS.
It could be a red flag. Also when you are
commingling funds, if you are set up to limit your liability,
that commingling funds can Here's what the attorneys tell me
is corporate veil. Now I'm not an attorney, never wanted
to be. Turney. Don't charge legal fees, So don't take
(10:02):
this as legal advice. Take this as tax advice. So
when we come back from this break, we're going to
continue talking about some of the risks that you have
commingling funds business and personal in your company. Over right
back after this, we.
Speaker 3 (10:19):
Have only scratched the surface of today's show. Please stand
by as Barry G. Fowler will be right back with
tax talk for you. If you owe the IRS or
are going through an IRS audit, don't go at it alone.
Called taxation Solutions tax relief at eight eight eight nine
(10:40):
three zero one zero one six, we are your solution
for IRS debts audits. Back taxes, garnishments, leans and levees.
Whether you're an individual or business, you need a solution
and a strong, aggressive tax resolution. Don't let the eye
as walk all over you. Stop the irs now call
(11:04):
eight eight eight nine three zero one zero one six
or go to Taxation Solutions dot net now for a
free no obligation consultation. Let's get back to tax talk
for you with more tax talk once again.
Speaker 2 (11:23):
Here's your host, Barry G. Faller.
Speaker 4 (11:28):
Hey, we're talking about taxes, tax planning and all your questions.
So get as many questions in regarding taxes as possible. Mister,
when did they separate CNES Corp. You've actually got to
make this election yourself or through us to establish an
(11:56):
actual escort. So when you set up your corporation with
the state, So if you do Missy Trucking, Inc. And
then file for your employer Identification number with the federal government,
it's going to come back and tell you you're going to
final eleven twenty, which is a C corporation. And if
(12:18):
when you are a corporation, then you have to file
that eleven twenty every year. And unless you make the
election through the IRIS to make yourself an escort, and
you only have so much time to do it. Otherwise
you've got to jump through some hoops and do it retroactively.
(12:40):
So you want to make sure you file the twenty
five to fifty free timely to make that ESCORP election. Now,
when you are company like this in LLC or corporation
and you start commingling funds, funds mixing business and personal,
you know you can lose induction some deductions out there,
(13:02):
and the eligibility of some deductions. Of course, the attorneys
tell me you're going to weakend your legal protections, piercing
that corporate veil for your LLC and your corporation you
could get if you were going through an IRS audit,
you should you might have some penalties, not necessarily from
commingling funds, but from making something that's non deductible and
(13:25):
stuff out there, and then you could have some very
difficulty producing clean and creditical books for your investors, you know,
So you want to make sure that you're doing that.
If you did charge something, I saw a question flash up.
I didn't see who it was. It was from Mickey.
(13:45):
If you do use your personal card for business, can
the expenses be repaid to the personal.
Speaker 2 (13:53):
Yes.
Speaker 4 (13:53):
What I tell people to do is to make it
clean and file an expense report with your company. Treat
it like you're working for somebody else, and file that
expense report and get that reimbursement. Put the receipt in there,
attach it to it. It's the same link turning in
let's say mileage. You're using your personal vehicle for business.
You know, do the expense report and turn that in
(14:15):
so that you know you can track every month your
mileage and you have where you went, places you were going,
and the reimbursement to yourself for that that mileage. Let's see. Oh,
I've got a message here from Gary. Am I required
(14:36):
to make estimated tax payments as a small business owner? Yes? No,
maybe you know. First thing we're going to do is
look at your twenty twenty four tax return. What was
your tax liability from that return? Not what you had
to pay when you did it, but how much money
was the actual tax. Then we have to look at
(14:57):
what is going to be your federal holding for this year.
If let's say your spouse works and has a W
two income and you've been in the business before and
at the end of the day, her withholdings enough to
cover what the tax liability was on your twenty fourth
tax return. Then the IRS is not going to have
(15:18):
a requirement for you to make an estimated tax payment,
but you may be required to pay taxes April fifteenth
the next year, and you probably got to do a
little bit of tax planning to see if you need
to set money aside to pay future taxes next year,
not necessarily have to pay them in So, maybe your
(15:38):
income has increased greatly, or maybe your spouse lost their
job and doesn't have the W two income, then you
probably would have to pay estimated taxes because you don't
have that withholding any So there's a lot of variables
to it. So that's why it's yes, no, And maybe
if you're seeing a huge increase in income, then you
(16:02):
definitely want to go through some tax planning and set
enough money aside. Now, maybe you've made money in business
and this year is a really down year and you're
having to pay absorbitant estimated taxes. You can actually go
to the actual method and pay your estimated taxes based
on actual earnings from your company. Now that requires a
(16:27):
very close review of your financials and your financial situation
prior to each estimate being due. Now, what are those
estimates due? You know, first one April fifteenth, notingl like
hitting you square in the head when you're already having
to pay taxes or filed by April fifteen. Then you
got to make your first estimated tax payment. Then the
(16:49):
next one isn't a quarter later, it's two months later,
and it's June fifteenth, then September fifteenth, and then January fifteenth.
So you've got those four tax payments that are out there.
We're just glad they didn't hit you December fifteenth, right
before Christmas, so you can enjoy your holidays and spend
some money out there. But you know, even if you
(17:12):
don't pay estimated taxes and you're not required, to make
sure you're looking at your financial position and where you're
at so that you've got enough money to pay the
taxes plus possibly the first estimate come April fifteenth, because
you know that's a double witch an hour. You want
to make sure you got money for both of them
(17:34):
and get those things both paid. That's out there.
Speaker 2 (17:37):
Hey.
Speaker 4 (17:38):
You know, when we do tax planning, we're always looking
at what we say is minimizing the tax, but maximizing profit,
you know, and sometimes you know that goes hand in hand.
Sometimes it sounds contradictory. Hey, how am I going to
maximize my profit? The more we can minimize the tax
that you do, the more money you actually keep in
your pocket. One way we do that at is making
(18:01):
sure that you're tracking all deductible expenses. Are you finding
everything that can be deductible? See when I go and
I do a seminar with oh Ida Owner Operator Independent
Drivers Association, and I go there and I speak, and
I also write for Landline magazine and you can see
my articles in their Trucking and taxes are fact that
(18:22):
we're working on an article this morning and talking about
different expenses that are missed and different tax problems that
people have. But what we always look to do is
to make sure that anything that you're paying with after
tax dollars that should be business related, meaning you didn't
(18:44):
find it to take it as a deduction. We find
it to make it deductible to save you money. Now
you know that minimizes profit but also maximizes what you're
keeping because it's moved it from where you're paying an
extra uh twenty percent on it because your tax bracket
or thirty percent self employment taxes and everything into it.
(19:07):
So you're paying this with after tax money, and it
should be paid out of this bucket over here that
is before tax. So you've got to make sure that
you're tracking your deductible expenses and you know, making sure
that even the small purchases like subscriptions and parking client
(19:29):
gifts aren't slipping through the cracks, and that you're getting
all those deductions. You know, sometimes the big things are
easy fuel rent marketing, But if you're not logging every
single expense, then you're giving the irs a much bigger
check than they deserve. Not that they deserve anything, but
you know, we do have to fund federal government for
(19:52):
you know, our protection, social Security, medicare you know, yeaday iadyada,
you name it, do it. So you need to make
sure that you're tracking all your expenses so you're not
losing deductions, overstating profits, or you're missing the opportunity for
legitimate right offs. Now, you know, you kind of got
(20:13):
to make sure that you're doting your eyes, you're crossing
your t's, making sure the deductible expenses is the correct
expenses out there. You may be paying cell phone, and
you think it's one hundred percent right off. Well, that
cell phone that you have out there should be allocated
to both business and personal, especially if it's your personal life,
(20:35):
because you do take phone calls from your mom, your dad,
your sister's, your brother, your friends, but you're also taking
phone calls your business associates, your clients, you know, people
that work for you, or people that you work for,
whatever it is. You know that you've got to be
able to take the appropriate amount of the write off.
(20:56):
So you've got to be aware of these things. You
don't want to overstate the deductions, but you don't want
to miss the deductions either, So you know, make sure
that you have what you need and you're getting the
proper deductions that you need to have for your business. Hey,
(21:17):
we're going to talk some more and answer some more
questions right after this quick break.
Speaker 3 (21:23):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back with.
Speaker 2 (21:30):
Tax talk for you.
Speaker 3 (21:34):
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Let's get back to tax talk for you with more
tax talk once again.
Speaker 2 (22:23):
Here's your host, Barry G. Fallo.
Speaker 4 (22:28):
Hey, welcome back. Like I said, I love questions. You know,
last week we had a great show. We had a
lot of questions and I got a lot of comments
over my dogs. Maybe next week I'm going to do
it out by the chickens or something so we can
see how many people we have that love chickens or
have backyard chickens. I could do a whole show just
on backyard chickens and what we've learned. But you know,
(22:50):
we talked about taxes, truckickers, bookkeeping, small businesses, your personal taxes,
you name it. Hey got a great question from Gabe
can I get another extension. I figured out I'm going
to owe more money than I thought, and I need
more time to pay and file gave. Unfortunately, the IRS
(23:15):
gives you a six month extension if you filed for
the extension before April fifteenth, and then you would have
to file it by October fifteenth. The extensions that IRS
grants you is not an extension of time to pay,
only extension of time to file, and they only give
you those six months. So if you're owing the money,
(23:37):
you should have paid it all in by April fifteenth.
Otherwise the IRS is going to hit you with interest
in penalties, and unfortunately there's not another extension to file
to get you more time to file. On top of that,
you just need to do everything you can to get
(23:58):
it filed and then we can work with the IRS
to set up a payment plan. If the amount is
significant and your income has gone down and you can't
afford to pay, then there's other solutions that are there
for you that can be put in place, but they're
also going to require that you actually pay your estimated
(24:22):
taxes as well with any solution that's going to go in.
So if your income is down, then I suggest you
go to the actual method to do your estimated taxes
and prove that you can pay a lower amount than
what would be based on the twenty twenty four tax
return that you will be filing, hopefully by the final
(24:46):
due due date in October fifteen. Now, if you are
a partnership escorp, that six month extension went from March
and therefore you have to September fifteenth file yours corp
returns and stuff out there. Rebecca, can I file my
(25:08):
taxes for free? IRS? Says you can. You can go
in and free filing may be possible using IRS Direct
File or IRS Free File, depending on your income and
tax situation. Other options are There's places all around the
country called VITA Volunteer Income Tax Assistance or TCE, which
(25:34):
is tax counseling for the elderly, can also be explored
if you are qualified. So either program you may qualify for, Yes,
you can do it. Do I absolutely suggest that I've
seen some of these things prepared. No, not necessarily, but
if that is your only option and you can get
(25:57):
away with free file, that's fine. If you're straight, just
one w two and maybe you're young, you know, hey,
maybe you can get in and use IRS direct file
depending on what your income is as well, Brenda, what
if you missed the tax filing deadline, Well, if you
(26:20):
miss the deadline and taxes are owed, hey, penalties an
interest are going to get acrow. However, if you've got
a refund coming back, there's generally no problem with filing late,
but file as soon as possible. Now, I'm going to
tell you I've seen people who it didn't file, they
were afraid they were going to owe, or just didn't
get around to it. And you know, you wait, you
(26:44):
drag your feet, and now you're four years, five years
down the road, and you're going to go file and
you find out you're going to get a refund from
a tax return from twenty nineteen or twenty twenty or
twenty twenty one, and guess what, you're not getting it?
You had three years to claim for a refund. Now,
(27:06):
isn't ironic? The IRS can go back as far as
it wants to force you to file and then collect
the tax for ten years after you filed and it's
been accepted. But you've got only a three year period
to file your tax return and do a claim for refund.
Some things are left to make you wonder, isn't it
(27:30):
Gabe follow up question, how can I make my estimated
tax payment? You can go online, go to IRS dot
gov and do your estimated tax payments there. Make sure
when you put in your estimated tax payments, you log
in to your own account out there and make sure
it's verified. They use one ID or something else out
(27:52):
there for this, and you can make your estimated tax payments. Now,
make sure you put in the tax year twenty twenty
five and they estimate tax payments. If you don't, you
happen to put twenty four or some other here, that's
where it's going to go, and then you would have
to call the IRS to get them to move the money.
But if you owe them, they're not going to be
(28:12):
very happy about moving the money to estimated tax payment
that's out there, But that's the easiest way. You can
also send in a check and use ten forty ES
and send that forum in with a check and the
IRS will still accept it. Again, make sure not only
on the ES form when you're sending it in. On
(28:34):
the check put yourself security number, but twenty twenty five
ten forty first quarter, second quarter, whichever quarter it happens
to be so that you can make sure it gets
credited to the right period, and if it doesn't get
credited to the right period, then you have proof that
(28:54):
it should have went there and the irs would have
to move those dollars to the right sue stimated tax payment.
All right, Brenda Man, we're on a roll here, one
big beautiful bill. What's in it? Well, right now, it
has passed the Senate with some changes. It goes back
(29:14):
to the House and I believe it's going into committee
and they will settle all this out and at the
end of the day, once the dust settles, will be
able to go through and do a complete review of
what the tax implications is in this bill. There are
some really nice things I have seen now. You know,
(29:37):
once they finished going through the numbers out there and
reconciling between the two different bills, the House and the Senate,
and it gets to the President, you're going to see
some increases in child tax credits. You're going to see
where cash tips have become non tax bulls. As long
(30:00):
as your income is below a certain amount, might be
interesting to change the way people get paid and you know,
start taking cash tips even in service business that isn't
where you're doing waiter waitresses. I mean, maybe I should
just do a line out of it, Hey send cash
(30:20):
dour staff for tips and make it non deductible, a
non taxable. I've also seen where they're going to make
and I don't know all the requirements behind it yet,
so security non taxable. But there's still going to be
some things that I think if you're making too much money,
you're still going to have to pay back or have
(30:42):
your benefits reduced some of the other things that are happening.
And this isn't necessarily from the bill, but twenty twenty
five standard deduction amounts for single filer is going to
be fifteen thousand, you're married filing jointly thirty thousand, and
had a household twenty two thousand, five hundred. The Child
(31:05):
tax Credit for dependence under seventeen right now sits at
a maximum of two thousand per child in twenty twenty five,
so we'll see. Misty, is that tip thing really going
to work? Yes? No, maybe, you know, it's one of
those things that you might want to ask people how
(31:28):
much of the cash tips they're actually reporting to their employer,
and how much cash tips are actually given these days,
most tips are done on the credit cards, so they're
talking about cash tips. So unless something changed in that
big beautiful bill might be limited in what actually is
(31:54):
non taxable, or you and I when we're out at
the restaurants giving it tip, should start giving cash tips
instead of putting it on credit card form because then
they would not report it. So when I'm looking at
that bill, I see the word cash tips, so I'm
(32:14):
assuming it'd be a cold hard cash. Now, maybe the
interpretation might be something different out there, but we'll have
to look and see what happens with this big beautiful bill. Hey,
we got a couple other questions about capital gains and taxes,
and we're going to talk about that right after this
(32:35):
quick break.
Speaker 3 (32:37):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family.
Speaker 2 (32:53):
Stop spending time doing paperwork.
Speaker 3 (32:56):
Go to truck or text tools dot com a solution
filter typically for truckers. Trucker tax tools dot Com makes
your life run smoothly. Let's get back to tax stock
for you with more tax stock.
Speaker 2 (33:12):
Once again, here's your host, Barry G. Fallum.
Speaker 4 (33:18):
Hey, welcome back. Hey, this is a great question from Marty. Marty,
you asked about what do we do different at Trucker
Tax Tools anybody else for truck or bookkeep You know,
this is one of these things I can jump off
and be on my soapbox about different people that jump
into bookkeeping or taxes. And you know, when you specialize
(33:43):
like we do around truckers, we know all the deductions
that you can take and look for additional deductions everywhere
we can find it. Now I see all all the
time online advertisements for people to jump out and be
a bookkeeper, and that you can make hundreds of dollars
(34:04):
off of people doing bookkeeping monthly. You know, those people
no training, not qualified, They just learned from some guy
that gave a short maybe a week course, two day
course or whatever and say hey, this is what you
can do. And then you're using your favorite software like
(34:25):
QuickBooks or zero and think you're you're doing great just
itemizing what's on a bank statement. But you don't realize
that in the trucking industry, you know, you need to
track perdems, you need to make sure that you have
the deduction for a lumper out there, or your scales
(34:47):
or your tolls or you know, bring me breaking down
the way you get paid between fuel search arg to
gross trucking income. All those little things can make it
difference when you, as a trucker need to know and
where's my money from coming from? Where how much am
I making, what's my income? Or when I need to
(35:09):
sit down and figure out my cost per mile, both
the variable and fixed side of this. These are the
things that become, you know, really really important when you're
running a small business and you're an over the road
truck driver. You don't have time to deal with all
this and make sure your bookkeeper knows about the trucking
(35:31):
industry and you know, using truck or tax tools and
go to Trucker tax tools dot com. Uh, we are
here to cater to you and make the system work
for you. You know, I was talking to a young lady
who is in the trucking business, and you know, she
(35:52):
honestly said, you know, hey, I've been doing this by
the seat of my pants for the last couple of years,
and I've come to you and we turned everything over
and you've made this thing really seemless and easy. I
was talking to a gentleman just on a Friday, who's
a trucker out there, has been in the trucking business
for you know, the last you know, four or five years,
(36:14):
been using somebody else. And they went, well, I'm not
sure that they've gotten me on my deductions. And I
told them, hey, I would do a three year review
of his past three years tax retick. First thing we
saw in there that didn't take the deduction for per diems.
There were other expenses in his business, and knowing what
he does and the people that he uses, and you know,
(36:35):
he's moving furniture and stuff across the country, so he's
hiring these kids, but there was never ever a deduction
for contract labor or helpers that are out there, or
for a lumper, and you know it sometimes amazed as
me and he goes, well, I didn't realize they didn't
know what I was doing and didn't know the business. Well,
(36:57):
you've got to know what you're doing, and you got
to know of the business. And so we take our
time to go through everybody's books to make sure that hey,
what kind of business are you running? What do you do?
What do you haul? Where do you haul to? You know,
are you paying your twenty two ninety taxes? Are you
you know, paying your IF to taxes? Is it coming
(37:19):
out of your settlement statement? Are you getting every deduction?
Are they deducting too much money for escrow? You know,
all these things become important and add up for you
in your your business and how that it's got to
make sense, so you know when you're going through and
doing this and finding somebody that knows over the road
(37:41):
trucking trucking businesses at Trucker tax tools dot com is
the place to go. Give us a call it eight
seven seven nine ninety six two four seven seven again
eight seven seven nine nine six two four seven seven
or just go to Trucker tax tools dot com. Hey,
right before the last break, I had a question from
(38:02):
a manual about capital gains. He was asking, what are
the long term capital gains rates for twenty twenty five?
Sold some assets? Okay, so long term capital gains for
twenty twenty five can be anywhere from zero percent to
fifteen or even twenty depending on your taxable income and
(38:24):
your filing status. Now, remember these type of capital gains
rates depending on how you if you're selling an asset
that you've depreciated, you may have to capture recaptured depreciation
and some of that could be taxed as ordinary income
for your business as well. Now, you also got to
remember the depending on how long you've held the asset for.
(38:45):
If it's been less than a year, you might be
subject to short term capital gains, and short term capital
gains are taxed as ordinary income according to where you
fall on your bracket. So you do have, you know,
multiple rates for long term capital gains and then then
(39:07):
you would have short term capital gains if you've held
the asset for less than a year. This also goes
for stocks, bonds, things like that you've held for a
period of time. Out there, let's see, Jeffrey, how do
you file an amended tax return? Well, if you discovered
an error on your tax return or something maybe you
(39:29):
left off, or maybe the IRS sent you one of
these nice courtesy letters saying you know, you left off stocks, bonds, stuff,
and they're not calculating it correctly, you would actually file
a ten forty X that's your amended tax return for
your individual. Now, if you're filing an amended return on
a partnership or escort. You're just going to hit the
(39:54):
box on the ten sixty five for partnership or eleven
twenty s amended return and send it in. It will
also show an amended return on your k ones that
will say amended. So don't forget you amend a corporate
or partnership return, you got to turn around amend your
(40:15):
personal returns as well. Think us. Another question come up,
If we tip cash, can we deduct it? Yes, you can.
So if you're running a business and you do tip cash,
I would recommend that you again file on expense report
with your company. So when you turn in the receipts
(40:39):
that you charge maybe on your company credit card or
debit card, and then you tipped cash, you'd want to
get rambursed. You can do it like a petty cash account,
and then you would turn in that receipt with it
that says I tipped cash eight dollars or ten dollars
or whatever. If you're going to tip an extravagant amount
(41:01):
of money, I've seen some people where they've tipped somebody,
you know, the full bill. Put it on the credit card.
That way you have tracking on it. Because it's about
your business deduction, not about necessarily their tip deduction at
that point, but yes, you could. You could do it
(41:23):
that way and run it through kind of petty cash
out there. It requires a little more paperwork and tracking.
So is it worth it to you or not? A
whole different story. Maybe I wouldn't necessarily do it when
I'm doing it as a business meal as much as
I would do it as when I'm just out personally
(41:44):
with my wife and having a romantic dinner. Let's say,
And I would tip in cash if I had it now,
I'd be honest. I don't know how many people carry
a lot of cash with them or carry cash with
them on a daily basis, but hey, it goes out there. Hey,
I want to say thank you for all the wonderful
questions and everything that we've gotten in today. It's great
(42:07):
to do a show like this and get questions and answers.
I'll be honest. I was talking to one of my
new clients here this morning, advising them because they didn't
read the ei N letter that when they set up
their company they were responsible for paying filing a partnership return.
And it's been a number of years and everything, But
(42:28):
I was talking about show prep, and I went, I
did absolutely no show prep today, and I had no
idea what questions you guys would come up with. And
you guys make me look good and ask some great questions,
and I appreciate that. You know. The one thing I
want to say, tax laws and regulations, they're actually complex.
Always you're running a business, you're making money, or you're
(42:48):
looking to start a business, have a good consultation with
a qualified tax professional so that you can get good
advice and good consulting prior you're starting your business or
even while you're running the business. You know, when we
talk here, this is broad based, so this is going
to apply many different ways, kind of like talking about
(43:11):
depreciation and other things out there. Depreciation is specific to
your business and the way it should be done. They
should necessarily take one hundred percent appreciation or a bonus
depreciation when you're in a very very low TASH bracket
could be a waste of a valuable deduction somewhere down
the road. To keep these things in mind, as you're
(43:34):
going through and doing this, you're looking for planning opportunities.
You're looking for ways of saving money and doing things
the right way. I have seen so many people CPAs,
enrolled agents, you name it, out there preparing tax returns
and it's all about making themselves look good. I look
(43:55):
better when I've planned with you as my client. Then
when I come in and say, hey, buy this new
tractor for one hundred thousand dollars and let's save all
your taxes. Do some tax planners do some strategies. So
you want to make sure that you're getting things done
(44:16):
the right way. And you know, if you got more questions,
put them in on wherever you're listening to or if
you hear this podcast, go to tax talkfor You dot Com.
Listen to the podcast on iHeart on our Facebook page
again a tax Talk for You dot Com. Put your
questions in. We'll come back and answer any questions we
missed next week's show, but you've got to tune in
(44:39):
here ten am Eastern time on W four c Y Radio.
Tax Talk for You dot Com go over there like
share Filom, but whatever you do, be here Mondays, ten
am Eastern time. Give us your questions. Love to hear you. Hey,
have a God blessed, glorious week. Enjoy this if we
(45:00):
what God has given us here in the United States,
God bless USA. I bless you be safe out there,
have a glorious week.
Speaker 3 (45:09):
Are you an individual or business that wants to understand
taxes and how they affect you. Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(45:29):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry g.
Speaker 2 (45:36):
Fouer EA.
Speaker 3 (45:37):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W fourcy dot
com
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fowler EA brings you tax talk for you right here
on W four CY Radio and Talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G.
Speaker 4 (00:59):
Foul Hey, welcome man, great Monday morning. This is the
kind of episode that I kind of like, and it
challenges you, a listener, to submit questions, and then it
challenges me to be able to answer those questions. Hey,
this is a test of tax knowledge. Since you've got
(01:22):
questions wherever you're listening, go to the comments section, go
ahead and put your questions in. It's send like share.
You know, the whole works. Let's get the word out
that we're here talking taxes, and we're talking taxes for you.
You know, whether it's individual taxes, whether it's small business taxes,
(01:44):
trucking taxes, and trucker bookkeeping, you name it. Hey, I've
got a bunch of new clients and I would like
to sit here and name them all over at truck
or Tax to some great truckers that have come to
us over the last week, putting Amanda, Robert, David, Daniel, Greg.
(02:06):
I know I'm missing about ten more just off the
top of my head, but those are meetings I have
coming up here in the next few hours with them
to do their initial call and get them all set
up in the bookkeeping and the tax department to make
sure we're dotting the as and crossing the ease. Hey, today,
like I said, we're going to be taking questions. You've
got questions, submit them, we'll get an answer. Talking first
(02:30):
here in this first section about tax planning and how
important planning can be in your business and personal When
it comes to taxes, some people think, you know, hey,
I'm going to show up, you know, in February, March, April,
and I am going to be able to save the
most amount of money on taxes because I've gone to
(02:53):
somebody to prepare my taxes. You know, we're limited in
what we can do after the year is done. And
that means most of the deductions and everything that you've
spent money on can be deducted. And let's say we're
working twenty twenty five and we're getting ready to do
your taxes. If you haven't spent the money, use the
money to find the deductions in twenty twenty five, we're
(03:17):
going to be very limited. Yes, we might be able
to do some retirement accounts. Yes, you might still be
able to contribute to your health savings account if you
have a qualified medical plan. But being able to strategize
with you what you can do throughout the year the
maximize deductions makes it very difficult. Buying a new vehicle
or new tractor or new piece of equipment for your
(03:40):
business can't happen in twenty twenty six and deducted in
twenty twenty five. But if this is a needed piece
of equipment, and we don't make this recommendation strong, you know,
without looking at what's going on in your business. So
this isn't one of these strong recommendations. Everybody should run
out and buy a piece of equipment because I'm going
(04:02):
to be able to take the appreciation and lower my taxes.
But if you didn't need the equipment, doesn't improve your
bottom line, doesn't improve the way you do business, then
you're just spending money. So you run out and buy
a new truck or new tractor, new trailer, a new
piece of equipment, and it costs you one hundred thousand dollars. Yeah,
(04:25):
it could save you, you know, ten, fifteen, twenty five, thirty,
forty thousand dollars, depending on what tax bracket you're in,
and you know, self employment taxes and the whole works.
It could be there, but you're still out the other
sixty thousand dollars. So it may not be the wise
financial decision. It may be the tax decision that you
(04:45):
need to make, but it doesn't make the decision right.
So you've got to put some business sense to everything
you do, even when you're talking about saving taxes, because
you know, yes, our goal here is to minimize the
tax you pay, maximize the profit that you're making, and
(05:06):
you've got to use the scales and the values of
what is going to make sense for you. You know,
some of the things we see in in tax planning
is people rushing out because they hear escorp and escort
can save you money. A rush decision in jumping out
(05:26):
into escorp can cost you thousands instead of saving you thousands. Now,
when they talk about tax savings when they're using an escort,
they're talking about saving money on self employment tax and that,
oh my god, your tax bill is going to drop
over tonight. But what many people don't realize when you're
(05:49):
making this escort election is that you're going to have
additional costs. And an escort election is only really works
consistently if you are consistently making a profit, but then
you're also ready to handle the administrative nightmare that comes
(06:10):
with it. So you're going to have increased costs for
payroll compliance. So you've got to do got to do payroll,
You've got to file the tax forms n W two's
W three, You've got to pay the payroll taxes, So
you're going to pay in the federal withholding that you
(06:32):
withhold from everybody's paycheck, social Security Medicare and the match
of Social Security Medicare, and then you're probably going to
have federal unemployment taxes to that, state unemployment taxes to that,
and then you get down to your now hopefully savings.
Then you're going to have an additional federal filing with
(06:57):
eleven twenty s that is your corporate escorpate return and
then the ke ones that go along with it. Then
I know this sounds bad. You'll have an additional scrutiny
of your business or having a reasonable salary for the
owner that is working in the business. Now, you could
(07:21):
also cause yourself a problem because you could potentially overpay
yourself if you're not profitable enough. So we in tax
planning will weigh out the difference between being self employed
or being a single member LLC report both reporting on
Schedule C versus what your tax liability would be reporting
(07:45):
as an escort and then decide, hey, which is the
best route for you to go and the best way
for your business and whether your business net income is
going to support being an escorp in the model of
the ESCORP and will it continually do that year after year?
(08:08):
So you know, you've got to make sure that you're
doing this, you're timely filing for that es CORP election
and making the right choices. So we sit down and
analyze your last twelve to eighteen months of your business.
We also sit down and with you in forecast the
next twelve months so that your ESCORP timing can be
(08:32):
done correctly. And David, thanks for the question out here.
And man, we're getting started with questions, so it's really
nice and it's great. Should I have a separate checking
account for business and personal? And we tell you absolutely.
One of the first things we do, whether you're a
sole proprietor whether you're a single member LLC, multi member LLC,
(08:56):
whether you set up an inc. So if your x
y Z Inc x y Z Trucking Inc. First thing
we're going to ask you on the phone is about
your checking accounts. And we're then going to ask you
about do you mix business and personal in your checking accounts?
(09:17):
You know, we know life moves absolutely quick. You grab
your business card, you go out for lunch and you
forgot it wasn't a client meeting, or you cover a
expense that should have been on your business card and
you put it on your personal card. You know, life happens.
You can get reimbursed for that, but you can't transfer
(09:40):
the transaction but to the you know, for the IRS.
It could be a red flag. Also when you are
commingling funds, if you are set up to limit your liability,
that commingling funds can Here's what the attorneys tell me
is corporate veil. Now I'm not an attorney, never wanted
to be. Turney. Don't charge legal fees, So don't take
(10:02):
this as legal advice. Take this as tax advice. So
when we come back from this break, we're going to
continue talking about some of the risks that you have
commingling funds business and personal in your company. Over right
back after this, we.
Speaker 3 (10:19):
Have only scratched the surface of today's show. Please stand
by as Barry G. Fowler will be right back with
tax talk for you. If you owe the IRS or
are going through an IRS audit, don't go at it alone.
Called taxation Solutions tax relief at eight eight eight nine
(10:40):
three zero one zero one six, we are your solution
for IRS debts audits. Back taxes, garnishments, leans and levees.
Whether you're an individual or business, you need a solution
and a strong, aggressive tax resolution. Don't let the eye
as walk all over you. Stop the irs now call
(11:04):
eight eight eight nine three zero one zero one six
or go to Taxation Solutions dot net now for a
free no obligation consultation. Let's get back to tax talk
for you with more tax talk once again.
Speaker 2 (11:23):
Here's your host, Barry G. Faller.
Speaker 4 (11:28):
Hey, we're talking about taxes, tax planning and all your questions.
So get as many questions in regarding taxes as possible. Mister,
when did they separate CNES Corp. You've actually got to
make this election yourself or through us to establish an
(11:56):
actual escort. So when you set up your corporation with
the state, So if you do Missy Trucking, Inc. And
then file for your employer Identification number with the federal government,
it's going to come back and tell you you're going to
final eleven twenty, which is a C corporation. And if
(12:18):
when you are a corporation, then you have to file
that eleven twenty every year. And unless you make the
election through the IRIS to make yourself an escort, and
you only have so much time to do it. Otherwise
you've got to jump through some hoops and do it retroactively.
(12:40):
So you want to make sure you file the twenty
five to fifty free timely to make that ESCORP election. Now,
when you are company like this in LLC or corporation
and you start commingling funds, funds mixing business and personal,
you know you can lose induction some deductions out there,
(13:02):
and the eligibility of some deductions. Of course, the attorneys
tell me you're going to weakend your legal protections, piercing
that corporate veil for your LLC and your corporation you
could get if you were going through an IRS audit,
you should you might have some penalties, not necessarily from
commingling funds, but from making something that's non deductible and
(13:25):
stuff out there, and then you could have some very
difficulty producing clean and creditical books for your investors, you know,
So you want to make sure that you're doing that.
If you did charge something, I saw a question flash up.
I didn't see who it was. It was from Mickey.
(13:45):
If you do use your personal card for business, can
the expenses be repaid to the personal.
Speaker 2 (13:53):
Yes.
Speaker 4 (13:53):
What I tell people to do is to make it
clean and file an expense report with your company. Treat
it like you're working for somebody else, and file that
expense report and get that reimbursement. Put the receipt in there,
attach it to it. It's the same link turning in
let's say mileage. You're using your personal vehicle for business.
You know, do the expense report and turn that in
(14:15):
so that you know you can track every month your
mileage and you have where you went, places you were going,
and the reimbursement to yourself for that that mileage. Let's see. Oh,
I've got a message here from Gary. Am I required
(14:36):
to make estimated tax payments as a small business owner? Yes? No,
maybe you know. First thing we're going to do is
look at your twenty twenty four tax return. What was
your tax liability from that return? Not what you had
to pay when you did it, but how much money
was the actual tax. Then we have to look at
(14:57):
what is going to be your federal holding for this year.
If let's say your spouse works and has a W
two income and you've been in the business before and
at the end of the day, her withholdings enough to
cover what the tax liability was on your twenty fourth
tax return. Then the IRS is not going to have
(15:18):
a requirement for you to make an estimated tax payment,
but you may be required to pay taxes April fifteenth
the next year, and you probably got to do a
little bit of tax planning to see if you need
to set money aside to pay future taxes next year,
not necessarily have to pay them in So, maybe your
(15:38):
income has increased greatly, or maybe your spouse lost their
job and doesn't have the W two income, then you
probably would have to pay estimated taxes because you don't
have that withholding any So there's a lot of variables
to it. So that's why it's yes, no, And maybe
if you're seeing a huge increase in income, then you
(16:02):
definitely want to go through some tax planning and set
enough money aside. Now, maybe you've made money in business
and this year is a really down year and you're
having to pay absorbitant estimated taxes. You can actually go
to the actual method and pay your estimated taxes based
on actual earnings from your company. Now that requires a
(16:27):
very close review of your financials and your financial situation
prior to each estimate being due. Now, what are those
estimates due? You know, first one April fifteenth, notingl like
hitting you square in the head when you're already having
to pay taxes or filed by April fifteen. Then you
got to make your first estimated tax payment. Then the
(16:49):
next one isn't a quarter later, it's two months later,
and it's June fifteenth, then September fifteenth, and then January fifteenth.
So you've got those four tax payments that are out there.
We're just glad they didn't hit you December fifteenth, right
before Christmas, so you can enjoy your holidays and spend
some money out there. But you know, even if you
(17:12):
don't pay estimated taxes and you're not required, to make
sure you're looking at your financial position and where you're
at so that you've got enough money to pay the
taxes plus possibly the first estimate come April fifteenth, because
you know that's a double witch an hour. You want
to make sure you got money for both of them
(17:34):
and get those things both paid. That's out there.
Speaker 2 (17:37):
Hey.
Speaker 4 (17:38):
You know, when we do tax planning, we're always looking
at what we say is minimizing the tax, but maximizing profit,
you know, and sometimes you know that goes hand in hand.
Sometimes it sounds contradictory. Hey, how am I going to
maximize my profit? The more we can minimize the tax
that you do, the more money you actually keep in
your pocket. One way we do that at is making
(18:01):
sure that you're tracking all deductible expenses. Are you finding
everything that can be deductible? See when I go and
I do a seminar with oh Ida Owner Operator Independent
Drivers Association, and I go there and I speak, and
I also write for Landline magazine and you can see
my articles in their Trucking and taxes are fact that
(18:22):
we're working on an article this morning and talking about
different expenses that are missed and different tax problems that
people have. But what we always look to do is
to make sure that anything that you're paying with after
tax dollars that should be business related, meaning you didn't
(18:44):
find it to take it as a deduction. We find
it to make it deductible to save you money. Now
you know that minimizes profit but also maximizes what you're
keeping because it's moved it from where you're paying an
extra uh twenty percent on it because your tax bracket
or thirty percent self employment taxes and everything into it.
(19:07):
So you're paying this with after tax money, and it
should be paid out of this bucket over here that
is before tax. So you've got to make sure that
you're tracking your deductible expenses and you know, making sure
that even the small purchases like subscriptions and parking client
(19:29):
gifts aren't slipping through the cracks, and that you're getting
all those deductions. You know, sometimes the big things are
easy fuel rent marketing, But if you're not logging every
single expense, then you're giving the irs a much bigger
check than they deserve. Not that they deserve anything, but
you know, we do have to fund federal government for
(19:52):
you know, our protection, social Security, medicare you know, yeaday iadyada,
you name it, do it. So you need to make
sure that you're tracking all your expenses so you're not
losing deductions, overstating profits, or you're missing the opportunity for
legitimate right offs. Now, you know, you kind of got
(20:13):
to make sure that you're doting your eyes, you're crossing
your t's, making sure the deductible expenses is the correct
expenses out there. You may be paying cell phone, and
you think it's one hundred percent right off. Well, that
cell phone that you have out there should be allocated
to both business and personal, especially if it's your personal life,
(20:35):
because you do take phone calls from your mom, your dad,
your sister's, your brother, your friends, but you're also taking
phone calls your business associates, your clients, you know, people
that work for you, or people that you work for,
whatever it is. You know that you've got to be
able to take the appropriate amount of the write off.
(20:56):
So you've got to be aware of these things. You
don't want to overstate the deductions, but you don't want
to miss the deductions either, So you know, make sure
that you have what you need and you're getting the
proper deductions that you need to have for your business. Hey,
(21:17):
we're going to talk some more and answer some more
questions right after this quick break.
Speaker 3 (21:23):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back with.
Speaker 2 (21:30):
Tax talk for you.
Speaker 3 (21:34):
As an owner operator, you already spend too much time
away from your family. Trucker tax tools handles all your
bookkeeping and taxes no matter what level trucker you are
life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
(21:56):
Trucker Tax Tools dot com for a free guide that
will give you the tools to never worry about your
taxes again. Call Trucker Tax Tools eight seven seven nine
six six two four.
Speaker 2 (22:09):
Seven seven or go to Trucker tax.
Speaker 3 (22:11):
Toools dot com now and let the experts keep you trucking.
Let's get back to tax talk for you with more
tax talk once again.
Speaker 2 (22:23):
Here's your host, Barry G. Fallo.
Speaker 4 (22:28):
Hey, welcome back. Like I said, I love questions. You know,
last week we had a great show. We had a
lot of questions and I got a lot of comments
over my dogs. Maybe next week I'm going to do
it out by the chickens or something so we can
see how many people we have that love chickens or
have backyard chickens. I could do a whole show just
on backyard chickens and what we've learned. But you know,
(22:50):
we talked about taxes, truckickers, bookkeeping, small businesses, your personal taxes,
you name it. Hey got a great question from Gabe
can I get another extension. I figured out I'm going
to owe more money than I thought, and I need
more time to pay and file gave. Unfortunately, the IRS
(23:15):
gives you a six month extension if you filed for
the extension before April fifteenth, and then you would have
to file it by October fifteenth. The extensions that IRS
grants you is not an extension of time to pay,
only extension of time to file, and they only give
you those six months. So if you're owing the money,
(23:37):
you should have paid it all in by April fifteenth.
Otherwise the IRS is going to hit you with interest
in penalties, and unfortunately there's not another extension to file
to get you more time to file. On top of that,
you just need to do everything you can to get
(23:58):
it filed and then we can work with the IRS
to set up a payment plan. If the amount is
significant and your income has gone down and you can't
afford to pay, then there's other solutions that are there
for you that can be put in place, but they're
also going to require that you actually pay your estimated
(24:22):
taxes as well with any solution that's going to go in.
So if your income is down, then I suggest you
go to the actual method to do your estimated taxes
and prove that you can pay a lower amount than
what would be based on the twenty twenty four tax
return that you will be filing, hopefully by the final
(24:46):
due due date in October fifteen. Now, if you are
a partnership escorp, that six month extension went from March
and therefore you have to September fifteenth file yours corp
returns and stuff out there. Rebecca, can I file my
(25:08):
taxes for free? IRS? Says you can. You can go
in and free filing may be possible using IRS Direct
File or IRS Free File, depending on your income and
tax situation. Other options are There's places all around the
country called VITA Volunteer Income Tax Assistance or TCE, which
(25:34):
is tax counseling for the elderly, can also be explored
if you are qualified. So either program you may qualify for, Yes,
you can do it. Do I absolutely suggest that I've
seen some of these things prepared. No, not necessarily, but
if that is your only option and you can get
(25:57):
away with free file, that's fine. If you're straight, just
one w two and maybe you're young, you know, hey,
maybe you can get in and use IRS direct file
depending on what your income is as well, Brenda, what
if you missed the tax filing deadline, Well, if you
(26:20):
miss the deadline and taxes are owed, hey, penalties an
interest are going to get acrow. However, if you've got
a refund coming back, there's generally no problem with filing late,
but file as soon as possible. Now, I'm going to
tell you I've seen people who it didn't file, they
were afraid they were going to owe, or just didn't
get around to it. And you know, you wait, you
(26:44):
drag your feet, and now you're four years, five years
down the road, and you're going to go file and
you find out you're going to get a refund from
a tax return from twenty nineteen or twenty twenty or
twenty twenty one, and guess what, you're not getting it?
You had three years to claim for a refund. Now,
(27:06):
isn't ironic? The IRS can go back as far as
it wants to force you to file and then collect
the tax for ten years after you filed and it's
been accepted. But you've got only a three year period
to file your tax return and do a claim for refund.
Some things are left to make you wonder, isn't it
(27:30):
Gabe follow up question, how can I make my estimated
tax payment? You can go online, go to IRS dot
gov and do your estimated tax payments there. Make sure
when you put in your estimated tax payments, you log
in to your own account out there and make sure
it's verified. They use one ID or something else out
(27:52):
there for this, and you can make your estimated tax payments. Now,
make sure you put in the tax year twenty twenty
five and they estimate tax payments. If you don't, you
happen to put twenty four or some other here, that's
where it's going to go, and then you would have
to call the IRS to get them to move the money.
But if you owe them, they're not going to be
(28:12):
very happy about moving the money to estimated tax payment
that's out there, But that's the easiest way. You can
also send in a check and use ten forty ES
and send that forum in with a check and the
IRS will still accept it. Again, make sure not only
on the ES form when you're sending it in. On
(28:34):
the check put yourself security number, but twenty twenty five
ten forty first quarter, second quarter, whichever quarter it happens
to be so that you can make sure it gets
credited to the right period, and if it doesn't get
credited to the right period, then you have proof that
(28:54):
it should have went there and the irs would have
to move those dollars to the right sue stimated tax payment.
All right, Brenda Man, we're on a roll here, one
big beautiful bill. What's in it? Well, right now, it
has passed the Senate with some changes. It goes back
(29:14):
to the House and I believe it's going into committee
and they will settle all this out and at the
end of the day, once the dust settles, will be
able to go through and do a complete review of
what the tax implications is in this bill. There are
some really nice things I have seen now. You know,
(29:37):
once they finished going through the numbers out there and
reconciling between the two different bills, the House and the Senate,
and it gets to the President, you're going to see
some increases in child tax credits. You're going to see
where cash tips have become non tax bulls. As long
(30:00):
as your income is below a certain amount, might be
interesting to change the way people get paid and you know,
start taking cash tips even in service business that isn't
where you're doing waiter waitresses. I mean, maybe I should
just do a line out of it, Hey send cash
(30:20):
dour staff for tips and make it non deductible, a
non taxable. I've also seen where they're going to make
and I don't know all the requirements behind it yet,
so security non taxable. But there's still going to be
some things that I think if you're making too much money,
you're still going to have to pay back or have
(30:42):
your benefits reduced some of the other things that are happening.
And this isn't necessarily from the bill, but twenty twenty
five standard deduction amounts for single filer is going to
be fifteen thousand, you're married filing jointly thirty thousand, and
had a household twenty two thousand, five hundred. The Child
(31:05):
tax Credit for dependence under seventeen right now sits at
a maximum of two thousand per child in twenty twenty five,
so we'll see. Misty, is that tip thing really going
to work? Yes? No, maybe, you know, it's one of
those things that you might want to ask people how
(31:28):
much of the cash tips they're actually reporting to their employer,
and how much cash tips are actually given these days,
most tips are done on the credit cards, so they're
talking about cash tips. So unless something changed in that
big beautiful bill might be limited in what actually is
(31:54):
non taxable, or you and I when we're out at
the restaurants giving it tip, should start giving cash tips
instead of putting it on credit card form because then
they would not report it. So when I'm looking at
that bill, I see the word cash tips, so I'm
(32:14):
assuming it'd be a cold hard cash. Now, maybe the
interpretation might be something different out there, but we'll have
to look and see what happens with this big beautiful bill. Hey,
we got a couple other questions about capital gains and taxes,
and we're going to talk about that right after this
(32:35):
quick break.
Speaker 3 (32:37):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family.
Speaker 2 (32:53):
Stop spending time doing paperwork.
Speaker 3 (32:56):
Go to truck or text tools dot com a solution
filter typically for truckers. Trucker tax tools dot Com makes
your life run smoothly. Let's get back to tax stock
for you with more tax stock.
Speaker 2 (33:12):
Once again, here's your host, Barry G. Fallum.
Speaker 4 (33:18):
Hey, welcome back. Hey, this is a great question from Marty. Marty,
you asked about what do we do different at Trucker
Tax Tools anybody else for truck or bookkeep You know,
this is one of these things I can jump off
and be on my soapbox about different people that jump
into bookkeeping or taxes. And you know, when you specialize
(33:43):
like we do around truckers, we know all the deductions
that you can take and look for additional deductions everywhere
we can find it. Now I see all all the
time online advertisements for people to jump out and be
a bookkeeper, and that you can make hundreds of dollars
(34:04):
off of people doing bookkeeping monthly. You know, those people
no training, not qualified, They just learned from some guy
that gave a short maybe a week course, two day
course or whatever and say hey, this is what you
can do. And then you're using your favorite software like
(34:25):
QuickBooks or zero and think you're you're doing great just
itemizing what's on a bank statement. But you don't realize
that in the trucking industry, you know, you need to
track perdems, you need to make sure that you have
the deduction for a lumper out there, or your scales
(34:47):
or your tolls or you know, bring me breaking down
the way you get paid between fuel search arg to
gross trucking income. All those little things can make it
difference when you, as a trucker need to know and
where's my money from coming from? Where how much am
I making, what's my income? Or when I need to
(35:09):
sit down and figure out my cost per mile, both
the variable and fixed side of this. These are the
things that become, you know, really really important when you're
running a small business and you're an over the road
truck driver. You don't have time to deal with all
this and make sure your bookkeeper knows about the trucking
(35:31):
industry and you know, using truck or tax tools and
go to Trucker tax tools dot com. Uh, we are
here to cater to you and make the system work
for you. You know, I was talking to a young lady
who is in the trucking business, and you know, she
(35:52):
honestly said, you know, hey, I've been doing this by
the seat of my pants for the last couple of years,
and I've come to you and we turned everything over
and you've made this thing really seemless and easy. I
was talking to a gentleman just on a Friday, who's
a trucker out there, has been in the trucking business
for you know, the last you know, four or five years,
(36:14):
been using somebody else. And they went, well, I'm not
sure that they've gotten me on my deductions. And I
told them, hey, I would do a three year review
of his past three years tax retick. First thing we
saw in there that didn't take the deduction for per diems.
There were other expenses in his business, and knowing what
he does and the people that he uses, and you know,
(36:35):
he's moving furniture and stuff across the country, so he's
hiring these kids, but there was never ever a deduction
for contract labor or helpers that are out there, or
for a lumper, and you know it sometimes amazed as
me and he goes, well, I didn't realize they didn't
know what I was doing and didn't know the business. Well,
(36:57):
you've got to know what you're doing, and you got
to know of the business. And so we take our
time to go through everybody's books to make sure that hey,
what kind of business are you running? What do you do?
What do you haul? Where do you haul to? You know,
are you paying your twenty two ninety taxes? Are you
you know, paying your IF to taxes? Is it coming
(37:19):
out of your settlement statement? Are you getting every deduction?
Are they deducting too much money for escrow? You know,
all these things become important and add up for you
in your your business and how that it's got to
make sense, so you know when you're going through and
doing this and finding somebody that knows over the road
(37:41):
trucking trucking businesses at Trucker tax tools dot com is
the place to go. Give us a call it eight
seven seven nine ninety six two four seven seven again
eight seven seven nine nine six two four seven seven
or just go to Trucker tax tools dot com. Hey,
right before the last break, I had a question from
(38:02):
a manual about capital gains. He was asking, what are
the long term capital gains rates for twenty twenty five?
Sold some assets? Okay, so long term capital gains for
twenty twenty five can be anywhere from zero percent to
fifteen or even twenty depending on your taxable income and
(38:24):
your filing status. Now, remember these type of capital gains
rates depending on how you if you're selling an asset
that you've depreciated, you may have to capture recaptured depreciation
and some of that could be taxed as ordinary income
for your business as well. Now, you also got to
remember the depending on how long you've held the asset for.
(38:45):
If it's been less than a year, you might be
subject to short term capital gains, and short term capital
gains are taxed as ordinary income according to where you
fall on your bracket. So you do have, you know,
multiple rates for long term capital gains and then then
(39:07):
you would have short term capital gains if you've held
the asset for less than a year. This also goes
for stocks, bonds, things like that you've held for a
period of time. Out there, let's see, Jeffrey, how do
you file an amended tax return? Well, if you discovered
an error on your tax return or something maybe you
(39:29):
left off, or maybe the IRS sent you one of
these nice courtesy letters saying you know, you left off stocks, bonds, stuff,
and they're not calculating it correctly, you would actually file
a ten forty X that's your amended tax return for
your individual. Now, if you're filing an amended return on
a partnership or escort. You're just going to hit the
(39:54):
box on the ten sixty five for partnership or eleven
twenty s amended return and send it in. It will
also show an amended return on your k ones that
will say amended. So don't forget you amend a corporate
or partnership return, you got to turn around amend your
(40:15):
personal returns as well. Think us. Another question come up,
If we tip cash, can we deduct it? Yes, you can.
So if you're running a business and you do tip cash,
I would recommend that you again file on expense report
with your company. So when you turn in the receipts
(40:39):
that you charge maybe on your company credit card or
debit card, and then you tipped cash, you'd want to
get rambursed. You can do it like a petty cash account,
and then you would turn in that receipt with it
that says I tipped cash eight dollars or ten dollars
or whatever. If you're going to tip an extravagant amount
(41:01):
of money, I've seen some people where they've tipped somebody,
you know, the full bill. Put it on the credit card.
That way you have tracking on it. Because it's about
your business deduction, not about necessarily their tip deduction at
that point, but yes, you could. You could do it
(41:23):
that way and run it through kind of petty cash
out there. It requires a little more paperwork and tracking.
So is it worth it to you or not? A
whole different story. Maybe I wouldn't necessarily do it when
I'm doing it as a business meal as much as
I would do it as when I'm just out personally
(41:44):
with my wife and having a romantic dinner. Let's say,
And I would tip in cash if I had it now,
I'd be honest. I don't know how many people carry
a lot of cash with them or carry cash with
them on a daily basis, but hey, it goes out there. Hey,
I want to say thank you for all the wonderful
questions and everything that we've gotten in today. It's great
(42:07):
to do a show like this and get questions and answers.
I'll be honest. I was talking to one of my
new clients here this morning, advising them because they didn't
read the ei N letter that when they set up
their company they were responsible for paying filing a partnership return.
And it's been a number of years and everything, But
(42:28):
I was talking about show prep, and I went, I
did absolutely no show prep today, and I had no
idea what questions you guys would come up with. And
you guys make me look good and ask some great questions,
and I appreciate that. You know. The one thing I
want to say, tax laws and regulations, they're actually complex.
Always you're running a business, you're making money, or you're
(42:48):
looking to start a business, have a good consultation with
a qualified tax professional so that you can get good
advice and good consulting prior you're starting your business or
even while you're running the business. You know, when we
talk here, this is broad based, so this is going
to apply many different ways, kind of like talking about
(43:11):
depreciation and other things out there. Depreciation is specific to
your business and the way it should be done. They
should necessarily take one hundred percent appreciation or a bonus
depreciation when you're in a very very low TASH bracket
could be a waste of a valuable deduction somewhere down
the road. To keep these things in mind, as you're
(43:34):
going through and doing this, you're looking for planning opportunities.
You're looking for ways of saving money and doing things
the right way. I have seen so many people CPAs,
enrolled agents, you name it, out there preparing tax returns
and it's all about making themselves look good. I look
(43:55):
better when I've planned with you as my client. Then
when I come in and say, hey, buy this new
tractor for one hundred thousand dollars and let's save all
your taxes. Do some tax planners do some strategies. So
you want to make sure that you're getting things done
(44:16):
the right way. And you know, if you got more questions,
put them in on wherever you're listening to or if
you hear this podcast, go to tax talkfor You dot Com.
Listen to the podcast on iHeart on our Facebook page
again a tax Talk for You dot Com. Put your
questions in. We'll come back and answer any questions we
missed next week's show, but you've got to tune in
(44:39):
here ten am Eastern time on W four c Y Radio.
Tax Talk for You dot Com go over there like
share Filom, but whatever you do, be here Mondays, ten
am Eastern time. Give us your questions. Love to hear you. Hey,
have a God blessed, glorious week. Enjoy this if we
(45:00):
what God has given us here in the United States,
God bless USA. I bless you be safe out there,
have a glorious week.
Speaker 3 (45:09):
Are you an individual or business that wants to understand
taxes and how they affect you. Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(45:29):
Then you need Tax Talk for You, hosted by tax
and trucker expert Barry g.
Speaker 2 (45:36):
Fouer EA.
Speaker 3 (45:37):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W fourcy dot
com
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