Usually, I never comment on videos, but your video is so convincing that I am unable to stop myself from doing something about it. You’re doing a great job Man, Keep it up.
Zach, I formed my Trucking Company (single member LLC) in October 2021 and bought my truck on November 8th 2021 but didn’t do my 1st load until 12-30-2021. My very first income for the business was on 01-04-2022. My question is, when did my truck depreciation begin (2021 or 2022)? I paid cash for my truck, $38,000.
Depreciation is based on when the truck was placed into service AKA when you started using it. Also, depreciation is very complicated because there are several different ways to calculate it. But you would most likely need to use the mid-quarter convention. The mid-quarter convention treats all property placed in service (or disposed of) during any quarter as placed in service (or disposed of) on the midpoint of that quarter. however, no depreciation is allowed under this convention for property that is placed in service and disposed of within the same tax year.
Thank you for your answer! So I would start claiming depreciation as of January 2002 at a rate of $1055.55 a month, ($38,000/36 months)? So for 2022, I purchased and used your Excel P&L spreadsheet instead of QuickBooks, so would I add truck depreciation under expenses since the spreadsheet does not have an assets and liabilities section?
@@djmartin21 you can do that for your own personal accounting, but for tax purposes, the asset will need to be entered into your tax software and reported on Form 4562 so if you’re only keeping track for taxes- Dont bother entering on your P&L
Great information. When you get a first truck loan with new authority. Can you please explain to me the detail how to approach with dealer and lender? Thank you.
My question is this 1. Let say I started a fresh brand new business Paid 100k for a truck 2. The truck is generating monthly revenue of 20k 3. After deduct expenses its down to let says 7k for example 4. Since I paid pure cash for the truck do I just depreciate the value of the truck to get the monthly truck expenses? 5. For example truck cost 100k do I deduct 1000 monthly and this would be my expense towards the truck? Like my question is how do I know how much of the truck to deduct as expense this way I can pay myself on a monthly basis
You would deduct the truck over 3 years, so $100,000 divided by 36 months. Or you could utilize bonus depreciation or some other types of accelerated depreciation to take a larger portion of the depreciation expense up front.
I just saw you have a course. Does this cover how to enter payroll expenses for 1099 contractors vs actual employees? Do you have a detailed list of what is included? Also, I’ve seen lots of conflicting info regarding COGS. Are any trucking company expenses supposed to be listed under COGS in QBO and schedule C? it seems that all expenses for the truck are actually listed under vehicle expenses for tax reporting purposes. Any help you can provide is appreciated!
We’re owner operator, husband drives cdl and I do bookkeeping. Issue I’m having is how to categorize our pay? I’ve been doing shareholders withdrawals, transfer into personal account from business account. My tax lady says I can’t do that nor can I use “ payroll “. She tells me to categorize it as “ lease/ rent. For the equipment to be on property. I’m just not understanding this theory. What’s wrong with doing shareholders withdraw?
Hello, so my husband has his trucks we have someone that deals with everything diesel, miles, plates etc. My husband wants me to learn how to do all of this. So where do i start so i can handle all of this?
Just record the depreciation at 100% of the truck's value. Be careful, if you sell the truck before it fully depreciates, you will need to recapture that depreciation and recognize income.
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Usually, I never comment on videos, but your video is so convincing that I am unable to stop myself from doing something about it. You’re doing a great job Man, Keep it up.
Thanks so much!
Zach, I formed my Trucking Company (single member LLC) in October 2021 and bought my truck on November 8th 2021 but didn’t do my 1st load until 12-30-2021. My very first income for the business was on 01-04-2022. My question is, when did my truck depreciation begin (2021 or 2022)? I paid cash for my truck, $38,000.
Depreciation is based on when the truck was placed into service AKA when you started using it. Also, depreciation is very complicated because there are several different ways to calculate it. But you would most likely need to use the mid-quarter convention. The mid-quarter convention treats all property placed in service (or disposed of) during any quarter as placed in service (or disposed of) on the midpoint of that quarter. however, no depreciation is allowed under this convention for property that is placed in service and disposed of within the same tax year.
Thank you for your answer! So I would start claiming depreciation as of January 2002 at a rate of $1055.55 a month, ($38,000/36 months)? So for 2022, I purchased and used your Excel P&L spreadsheet instead of QuickBooks, so would I add truck depreciation under expenses since the spreadsheet does not have an assets and liabilities section?
@@djmartin21 you can do that for your own personal accounting, but for tax purposes, the asset will need to be entered into your tax software and reported on Form 4562 so if you’re only keeping track for taxes- Dont bother entering on your P&L
Great information. When you get a first truck loan with new authority. Can you please explain to me the detail how to approach with dealer and lender?
Thank you.
ua-cam.com/video/v44IYuQAIVM/v-deo.html
My question is this
1. Let say I started a fresh brand new business Paid 100k for a truck
2. The truck is generating monthly revenue of 20k
3. After deduct expenses its down to let says 7k for example
4. Since I paid pure cash for the truck do I just depreciate the value of the truck to get the monthly truck expenses?
5. For example truck cost 100k do I deduct 1000 monthly and this would be my expense towards the truck?
Like my question is how do I know how much of the truck to deduct as expense this way I can pay myself on a monthly basis
You would deduct the truck over 3 years, so $100,000 divided by 36 months. Or you could utilize bonus depreciation or some other types of accelerated depreciation to take a larger portion of the depreciation expense up front.
where's the quickbook trucking business course link?
I don't have that course anymore :(
@BookkeepingExpert Why? Will you be bringing it back anytime soon? Thank you for sharing all this valuable unfo with us.
Hi, how much do you charge to set up an llc with S-corp, w2 and file taxes for a new lease operator?
I don't do that, but I'm sure a CPA would charge about $1,500+
I just saw you have a course. Does this cover how to enter payroll expenses for 1099 contractors vs actual employees? Do you have a detailed list of what is included?
Also, I’ve seen lots of conflicting info regarding COGS. Are any trucking company expenses supposed to be listed under COGS in QBO and schedule C? it seems that all expenses for the truck are actually listed under vehicle expenses for tax reporting purposes.
Any help you can provide is appreciated!
The course does not cover payroll. I don't use COGS for my trucking company.
We’re owner operator, husband drives cdl and I do bookkeeping. Issue I’m having is how to categorize our pay? I’ve been doing shareholders withdrawals, transfer into personal account from business account. My tax lady says I can’t do that nor can I use “ payroll “. She tells me to categorize it as “ lease/ rent. For the equipment to be on property. I’m just not understanding this theory. What’s wrong with doing shareholders withdraw?
I would do Owner's Pay or Owner's Distributions, but it depends on your entity structure. S Corp or LLC
@@BookkeepingExpert she set us up as C Corp
Hello, so my husband has his trucks we have someone that deals with everything diesel, miles, plates etc. My husband wants me to learn how to do all of this. So where do i start so i can handle all of this?
Yes, you can! Get QuickBooks Online
Hi zach
Just wondering do you help with the Canadian small-business trucking company or just us thank you
Only USA
Who you recommended to do my taxes trucking business here in Florida?
kyle@fronkcpa.com
What if you are going to do your 100% depreciation for 2022 how do I record that in quickbooks?
Just record the depreciation at 100% of the truck's value. Be careful, if you sell the truck before it fully depreciates, you will need to recapture that depreciation and recognize income.