I am about to file my taxes with a CPA tomorrow.He claims he does O/O on a frequent basis.
In being a novice at this, I asked him if there was a way to even out my expenses and gross where I wouldn't owe anything or expect a return.He said no because that may trigger an audit.
As you know I don't know much about it.The CPA told me to add up my expenses, and on paper my expenses is as follows:
40%= fuel(includes deadhead)
base plate,local registration,2290=$2200
Repairs and Maintainance=$8000
per diem=$30/day X200 working days=$6000
Cell phone and aircard service=$1300
equipment for business=$1500
insurance=$50(bobtail and HCP)x 52 weeks=$2600
This was for last year.Let's say, the total expenses in running this bsusiness is 75% of my gross which is kind of saying 75cpm to operate.Let's say I grossed 100k and my expenses was 75k, does it mean I will pay 20-33% of the remainder which comes out to 25k X 20-33%?
This truck is paid off with no truck note.I have a company trailer.This is my second year in being an O/O.
BTW, where is my buddy CAM and the very fiery LOADIT?