Tax Solutions and Business Tips 
for Trucking Professionals
The 2017 Federal Income Tax filing deadline is fast approaching! 
Make sure you have gotten your tax preparer everything he or she needs to complete your return!
Deductions
By: Rebekah Sanders
 
"What is a business expense?" and "What can I deduct?" are two of the most common questions a business owner has. The IRS says that a business expense must be ordinary and necessary to be deductible, but what is ordinary and necessary? An ordinary expense is one that is common and accepted by others in your trade or business. A necessary expense is one that would be helpful and appropriate for your business.

The purpose of a business deduction is to decrease your taxable income and reduce the amount of your tax liability. In order to take advantage of business deductions good record keeping is essential. Receipts should be kept in a dark cool place, or as a digital copy, as the IRS has the ability to audit your returns for up to seven years. To help you along your journey, Abacus CPAs can provide you with a PDF or Excel version of our Cash Expense Record with some of the most common out of pocket expenses for our clients in the transportation industry.

What changes can you expect in business deductions for the new tax year? One of the biggest changes is you will no longer be able to deduct entertainment expenses for your business. Meals for recruitment purposes and business lunches will remain at 50% deductible.

We are honored that you have chosen Abacus CPAs for your accounting needs. If you need assistance in determining what is considered a business deduction, or any other tax advice, please contact our office at 417-823-7171.


LUMPERS!
By: Drew Klaus

 

Did you know that not all companies record the lumper expenses on the driver settlements?  Make sure to review the expenses listed on your settlements for lumper expenses and other tax deductible expenses when providing information to your accountant!

 

For example, Prime Inc. sends an advance through the settlements to pay for lumpers, however when lumpers are paid out by the driver the lumper expense receipts are not recorded on the driver's settlements as an expense.  This is why your accountant will need all lumper expenses - whether they are paid out of pocket OR paid through comdata check.  Upon request, Abacus CPAs has the ability to go through the lumper receipts turned into Prime Inc. upon request and count the amount of lumpers paid with a comdata check; however doing so will incur a $70 fee.

 

Other transportation companies may subtract the amount of lumper expenses back out of the driver's settlements but categorize it as a reimbursement.  If a driver's lumpers are already subtracted out of a settlement, Abacus will only need the amount paid out of pocket for lumpers. 


For more clarification on lumpers, please feel free to contact us at 417-380-5000.

 

 

On the Road Recipes!
Crockpot Buffalo Chicken Dip

Ingredients
 4-6 Skinless Boneless Chicken Breasts
1 pack of cream cheese
1-2 cups of hot sauce
1-2 cups of shredded cheddar cheese
Chips or veggies for dipping

Directions
Cook the chicken in the crockpot on high for 4 hours, then shred the chicken with two forks.  After the chicken is shredded, add the cream cheese, hot sauce and shredded cheese.  Mix everything together and cook on low for 1-2 hours and it will be ready for chips or veggies to dip in!  Yummy!

As our busiest time is upon us, we thought it was a good time to remind you about our SECURE online portal in which you can submit documents for us and we can submit documents for you.  Below is HOW TO access:
 
Abacus Access
You can access this online portal by going to abacuscpas.com, and then clicking the green button labeled "Abacus Access" on the home page. Much like email, an Abacus Access user will have a specific username and password associated with their account.
Uploading Documents:
After logging into Abacus Access, the user can upload documents by clicking "File Exchange", then clicking the folder labeled "Upload your files here", and then clicking the upload button. After clicking the upload button, a pop-up box will appear enabling the user to add their desired files. Once the user has added their desired files, the last step in uploading the files is clicking the "Start upload" button on the pop-up box.
To Access Your Tax Return:
In order to access an electronic copy of the user's completed Tax Return, simply click the "File Exchange" button. After clicking File Exchange, the user will see a folder labeled "Tax Return 20XX" which is where their Federal and State Tax Returns will be stored.

Below are the clients with whom we are celebrating a big anniversary of working together!  We appreciate you and your continued trust in us!

Celebrating 5 years in April!
Robert Beard
Diane Blough
Tommy Bridges
Melvin D. Brown Jr.
Elwyn Burt
Eric Cameron
Michael Carter
Michael Davidson
Stephen Gregory
Larry Hamilton
Jemuan Hill
Christopher Jackson
Brandon Larrabee
Edward Ortiz
Curtis Parks
Jeremy Paul Smith
Rick Spear
Curtis Taylor

Celebrating 10 years in April!
Derek Gough
Anthony Hill
Leopold Joseph
Jerry Parks
Lee Young

REMINDER!
We sent a message last month about the 1099-MISC. 
 It is so important we have copied it here as well. 

If you paid a co-driver $600 or more, outside of W-2 earnings, you are REQUIRED to provide them with a 1099-MISC.!  The required tax documents need to be mailed to the IRS on or before January 31st and we can help prepare them for you!  You will just need to provide us with each of the co-drivers addresses, social security numbers and the amounts you paid each.

DUE: 1099-MISC forms are due to the Recipient and the IRS on January 31, 2018
PENALTIES: There are penalties for failure to file and filing incorrectly or past due dates.
NOTICES: Please contact us if you receive a notice from the IRS regarding 1099-MISC forms.

Please contact us immediately if you would like assistance with the preparation of 1099-MISC forms for your Business.