Whether your gross income is measured in six, seven or eight figures — or more – you are probably just about now starting to feel the IRS’s greedy, slimy hands on your wallet or bank account.
The sad truth is this: The number one living expense that we bear in the U.S. is, you guessed it, TAXES! You want to hear the totally disgusting part?
The taxes we pay are more than the number two, three and four expenses that we pay – combined!
Have I got your attention now?
(FYI, the two, three and four expenses are housing, food and transportation, in that order.)
I promise, I’m really not trying to ruin your day with this wretched news.
What I’d like to do, with your permission, is awaken you to the value and importance of perfectly legal and ethical deductions that you may have been overlooking at tax time every year.
Want specifics? If you are a business owner or well-compensated manager or executive, you are probably sending 40 to 50 percent of each additional dollar you earn to our friends in Washington.
Well, by golly, let’s turn this freighter (or truck, train or cargo jet) around!
That also means, then, that for every additional dollar of expenses that you can deduct on your tax return, you SAVE 40 to 50 cents.
Quick example: we just helped a client of ours, a small fleet owner, save $2,000 with just one expense. Seems his wife was driving about 8000 miles every year specifically for his business. They had never deducted it before because, well, their previous preparer had never asked about it.
And then we went on to find several thousands more in totally legit expenses. All business-related, but just a little below the radar of expenses that they would normally think about.
Below are just a few examples, but the key is to simply expand your thinking as to what expenses you or your spouse are incurring that are at least indirectly related to your business.
Frequently overlooked expenses:
- Local business-related mileage, driven by taxpayer or spouse
- Office or business furnishings
- Computer, laptop
- Possible home office
- Does your spouse help in your business? How about an occasional date to talk about goals, dreams and plans?
- Out-of-pocket expenses – you are not required to have a receipt for purchases under $75.00, as long as you record it in a log.
- And here’s one just for fun—what about those mixed-use trips you made last year? Either alone or with spouse/family along?
What’s the takeaway from all this?
- If it seems business-related, it probably is
- You’ll probably be pleasantly surprised if you take an evening either at the kitchen table, or, once again, in your favorite chair with your favorite beverage, and just think. Brainstorming with your spouse or significant other is even better.
- Food for thought: Is your tax person in pretty regular touch with you, giving you ideas like this for keeping a lot more of your hard-earned money? Or is he or she more the type to “shoot down” your ideas or questions just because he or she is not well-versed in transportation or logistics deductions?
You deserve a tax professional that’s on your side, that you can depend on for up-to-date, legit and ethical tax and financial help.
As a matter of fact, if you have a really good tax person, especially if he or she is well-steeped in transportation and logistics, you may want to stay right where you are.
But if you’re sick and tired of getting pounded by the IRS year after year, we’d love to hear from you.
It would be our pleasure to welcome you home… to the eTruckerTax Family!
Feel free to email us with your situation, or better yet, call Kristin here at the Inter-galactic Headquarters of eTruckerTax, at 770-984-8008. I promise you she won’t bite—she gave me her word! – and I guarantee you’ll be glad you called.