4. February 2009 by admin.

Curb Weight is the actual weight of the truck without any passengers or cargo in it. It’s the base weight that is used in subtraction to calculate the total weight of the vehicle with passengers and cargo.

Gross Vehicle Weight is the total weight of the loaded vehicle. This includes the vehicle itself and the cargo that is loaded within that vehicle.

Gross Vehicle Weight (GVW) Ratings are the ratings that are calculated by the manufacturers as to be the amount of weight that the vehicle will be when the vehicle itself is weighed filled with gasoline and loaded according to manufacturer’s specifications. 

Depreciation of a vehicle depends on the Gross Vehicle Weight.   

For 2008, Cars with a GVW (unloaded) up to 6,000 lbs. have a maximum depreciation when basis exceeds (with bonus) $18,266. 

For 2008, a Truck or Van (Including SUV’s and Minivans on a  Trust Chassis) GVW (loaded) up to 6,000 lbs. have a maximum depreciation when basis exceeds (with bonus) $18,600. 

For 2008, Cars, Trucks or Vans (Including SUVs and Minivans) GVW over 6,000 lbs. but not over 14,000 lbs. have no depreciation limit (up to the cost).  The Maximum §179 (upfront) depreciation is $25,000. 

Note: All of the above maximums have to be multiplied by the business use percentage to compute the deprecation deduction

Posted in Income Tax | 2 Comments »

4. February 2009 by admin.

How is the LLC operating income taxed? The tax side is way different… BAD.  A single member LLC is a “disregarded” entity.  Thus, the LLC would not do a separate tax return as would a corporation.  The owner (now you know to say member) would account for the income exactly as a sole proprietor on a Form 1040 Schedule C.  But, the member gives up the opportunity to save on payroll taxes versus self-employment tax (the main reason for “S” corps).  That’s BAD.

There is more information on LLC’s on our website www.USATaxHelp.com

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4. February 2009 by admin.

How is the LLC income reported? 

The IRS considers the single member LLC to be a “disregarded” entity.  That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements.  That’s still a part of the GOOD, ease of reporting income. 

A multiple member LLC comes under the partnership tax rules.  Thus, a partnership tax return is required.  In a partnership, partners take draws and do not have the same distribution rules as do “S” corporations.  Substitute the word members for partners.  That’s GOOD.

Posted in LLC's | 1 Comment »

3. February 2009 by admin.

Owners of LLC’s are called members.  The person in charge is called the manager or managing member (if it is a multiple member LLC).

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3. February 2009 by admin.

HOME OFFICE DEDUCTION Do you have an area of the home you use exclusively for business?

If so, the following information is needed:

• Square footage of area used exclusively for business

•  Total square footage (excluding garage)

•  Electric, gas (not water)

• Maid service if it includes the office

• Home insurance or Renters insurance

• Portion of DSL used for business

If you rent the home or apartment

            ·     Rent expense for the year (or portion to which the business applies)

            ·     Cost of Home (best to have copy of settlement statement when purchased) 

               ·      Value of Land on date of purchase 

NOTE:  The usage of the area (area, not necessarily a closed off room) must be used EXCLUSIVELY for business. 

Simply multiply the business use percentage (Square footage of area used exclusively for business divided by the Total square footage (not including garage) TIMES the total expenses. 

These requirements are discussed in greater detail in IRS Publication 587, Business Use of Your Home available at www.IRS.gov

Posted in Income Tax | No Comments »

3. February 2009 by admin.

Limited Liability Companies started in the United States in Wyoming in 1977. Similar entities existed in Germany in the late 1890’s. The Wyoming farmers wanted the advantages of corporations (specifically, limited personal liability) with the advantages of being unincorporated (no organizational meetings, By-Laws, accounting requirements). Since then, all 50 states have adopted various forms of LLC’s. Not all states have the same advantages. That’s the GOOD.. no organizational meetings, no By-Laws. It is operated the same as a sole proprietor.

Posted in LLC's | 1 Comment »

3. February 2009 by admin.

Welcome to IRSTaxTalk.com, our blogging website.  Please visit our main website www.USATaxHelp.com

Thank you and please feel free to comment. 

Posted in General | 4 Comments »