#39. How To Prepare For Your Taxes

No one likes to pay taxes and submitting your tax returns is not the funnest thing in the world. In this episode, I’ll share some tips to make the process as painless as possible.

What to Expect From Episode 39

Don’t wait until the last minute to get started. Unless you file your taxes as a sole proprietor, your return is due March 15th of every year. You should typically have all your info to your accountant by the end of February to give them time to get it all done and filed on time. If you can’t do that, you can file an extension, but that is an extension to file, not an extension to pay. 

Use an accountant who does business taxes, ideally, someone who knows the trucking industry.

 

Here are some of the main things you will need to provide your accountant.

• Your EIN Number, ideally the document from the IRS that has your EIN on it
• A copy of your P&L for the entire year 
• A copy of your Balance Sheet as of the end of the year, include a comparison for the end of the previous year too, if you have been in business for more than one year
• Copies of the bill of sale for any major purchases you made during the year, like your truck and trailer
• Copies of any 1099’s you have received
• Interest amounts paid on your loans
• Number of nights you were on the road away from home
• If you are using a new accountant, a copy of your tax return from the previous year

 

Here are some good questions to ask your accountant.

• What method of depreciation do they recommend using?
• Should part of your driver pay be paid using per diem?
• When will they have the taxes prepared by? Make sure you hold them to it.

 

Listen to the episode and where we go over all of this in more detail.