topic First year self employed pick up truck- parts delivery. I keep all receipts and paperwork and log miles in case. this is my first year, any tips or tricks of the trade? in Deductions & credits

First year self employed pick up truck- parts delivery. I keep all receipts and paperwork and log miles in case. this is my first year, any tips or tricks of the trade?

mattj402 — Fri, 09 Aug 2019 22:32:12 GMT

Re: First year self employed pick up truck- parts delivery. I keep all receipts and paperwork and log miles in case. this is my first year, any tips or tricks of the trade?

Carl — Sat, 10 Aug 2019 02:17:49 GMT

Sounds to me like you're doing things right and doing all you need to do. Documentation is the key and you seem to have that down. But when reporting/claiming the vehicle use that first year, work it both ways to see which works best for you. So figure the "actual expenses" method first, since you have all receipts, including gas receipts. Then do the "per mile" deduction. My bet is, you'll come out better with the "per mile" deduction. But it really depends on the total miles driven for the year, and what percentage of those miles are business miles.

Do note that if the vehicle is not 100% business use, then you have to claim the "per mile" deduction.It's practically impossible to prove how many drops of gas in a tank were used for business, and how many were used for personal use.

Re: First year self employed pick up truck- parts delivery. I keep all receipts and paperwork and log miles in case. this is my first year, any tips or tricks of the trade?

VolvoGirl — Sat, 10 Aug 2019 02:19:58 GMT

Here is some general info. You will need to keep good records. You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small. You might want to use Quicken or QuickBooks to keep tract of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed return....

http://quickbooks.intuit.com/self-employed

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf