Owner-Operator? 7 Important Scenarios You Should Disclose to Your Tax Preparer
While we understand we all strive to save on tax and maximize our profits, it is key to do so with proper accounting and tax filing. M7 Tax will help you achieve that goal. However, it is essential to share relevant information with us.
The following 7 scenarios are examples of what you should bring to the attention of your tax preparer prior to filing.
1. Have you purchased a new truck or added another truck to your existing owned truck(s)?
The answer to this question is important to measure the amount of your depreciation deduction. Leading to a potential reduction in you tax liability.
2. Have you changed carriers?
We understand this may be frustrating to navigate, but every Dollar earned in income should be on your tax file. However, this also means that there would be areas of potential tax deductions that M7 Tax would identify.
3. Have you signed a new lease, renegotiated an existing lease or changed existing lease terms?
It is essential that you inform your tax preparer about any change, alteration or initiation of any legal document as this would potentially impact your tax situation. In order you entering into any new legal documents or renegotiating the terms of previous legal documents may impact your tax situation.
4. Do you have a side gig or work part-time in addition to your trucking business?
It is extremely important to inform us about any income you have earned outside of the trucking business in order to make sure the tax filing is accurate and audit proof.
5. Has there been any change in your family status (marriage, divorce, etc..)?
The change in status between and your spouse has potential impact on your tax filing. Please let us know of such changes to avoid any mishaps.
6. Have you had any debt forgiven by your creditor?
It is crucial to inform us of such a change as this may have an impact on your gross income calculation.
7. Have you made payments for the business using cash and do not have a proof of the transaction such as an invoice or receipt?
It is always advisable to keep log of every payment you make in form of an expense that could be considered a business expense. In addition, it is essential that you keep digital (or physical) copies of every receipt that would be used as proof by M7 Tax team when preparing your deductibles.