Barry's Accounting Services, Corp.
1852 Flatbush Avenue - 2nd Floor
Brooklyn, New York 11210
(718) 677-4006
E-mail:
clembarry@aol.com
 
 
Client Update - quarterly newsletter
 
   

Heavy Trucks, Courier Vans, Passenger

Vehicles, and Tire Shops (CDL & TLC).

(Plus vehicle tax preparation checklist)

Tax Preparation & Insurance for Truckers - www.consultantbarry.com
"Big rigs keep the economy rolling"

Truckers, Couriers, Passenger Vehicles - Barry's Accounting Services

"Trip-Sheet expenses are just the beginning.You need a Transport Tax-Accountant to go Full-Throttle for you. Let's ROLL!!"

Business Tax Returns MUST reach the IRS & State on or before March 15. Hence, the information to prepare them should be given to us on or before March 01. You are liable for paying late filing penalties to the IRS & State if we received your documents late. Let's get to the specifics!!

 

Services We Provide Fleet, SEMI's, OD's, and OTR's.

1)Tax Planning, Financial Planning, and Book-keeping.     

2) Federal Income Tax Preparation. 

3) Single and Multi-State Income Tax Preparation. 

4) Insurance & Risk Management Advisory.  

5) New Business, Franchise, and Real-Estate Advisory.

6) IRS and State(s) Tax Problem Resolution.

 

Who Are Our Clients:- Our clients are over 300 (FTL and LTL Carriers)Moving & Stroage Companies, Shipping & Delivery Companies, Passenger Vehicles, and Tire Shop Owners. They operate as C-Corp., S-Corp., LLC., and Sole-Props. They have been our clients for many years. We know your Industry Standards and Practices, and the New Tax Breaks, including the PER DIEM allowances, Major Repair allowance and deduction, and Bonus depreciation deduction for Owner Driver, in accordance with IRS and DOT rules. We help clients pay LESS tax and keep MORE money in their pockets/ We put our Track-Record and Reputation behind it. You have a lot of work to get done. Lets start today!!!

Federal and Single-State, or Federal and Multi-StateTax Returns are completed Quickly, Efficiently, and Accurately. The turn-around time is 1-2 days. We give clients Peace-of-mind; and put a BIG smile on their faces. We're ready to go Full/Open Throttle for you. Are you ready to ROLL with us? Let's start today!!! Some transport clients Fax their documents to us. Most of them send us their documents by UPS, DHL, FedEx, and Post Office. They are:-

1) Taxi & Limousine companies (Uber, Unter, Lyft, Juno, Communicar, Green Cab, etc.)

2) Private yellow buses (Fleet & Owner-operator)

3) Trucking company fleet  & Owner-operators (NY, NJ, CT, GA, PA, FL, TX, CA, NC).

4) OTR's, OD's and SEMI's with dedicated lines/routes (consistent loads) for C.H. Robinson, Landstar, Echo Global Logistics, Crete carrier, Coyote Logistics, BNSF Logistics, Swift Logistics, JB Hunt; Knight Transportation, Worldwide Express, Mayflower, Old Dominion, Transport America, Metropolitan, Heartland, Stevens, Arnold, Pace, Golden Drop, Schneider, Maffucci, Bekins, and Food-Lion (NY, NJ, CT, GA, PA, FL, TX, CA, NC).

5) Workers of the New York City Transit AuthorityMetro-North,  and CSX.

 

How We Obtain Transportation Clients:- Direct mailing from our exclusive Database; States Department of Corporation Registry; Truckers searching on Google and other Search engines; YouTube Truckers Group Discussions; and having promotional items distributed at Truck Shows, Truck Stops, and Dispatch Terminals.

 

What We Want From Vehicle Owners

1) Your Cell Phone number and E-mail address for quick communication.

2) A paper copy of the last tax return you filed.

3) Your Business Gross or Total Income for the year; or Forms 1099.

4) Copy of Birth certificate and Social Security Card for each dependent you are claiming. 

5) Forms W-2G gambling & winnings from Casinos, State Lottery, Horse Racing, etc.

6) Rental Income, Mortgage Interest, Property Tax and ALL Expenses you pay to operate each rental property you own.

7) An analysis of your business expenses for the year. If you are a owner operator we would add your DOT & IRS per diem for incidental expenses.

8) Your Credit Card or Bank Account Information to pay for the service.

 

Transportation Related Education

*Travel Institute, New York (Air, Road, Rail, & Sea).

* Brooke Transportation Training Solutions, Texas (Trucking).

* M.S. Taxation; and IRS Enrolled Agent - since 1989.  

* MBA Business Management.

* Insurance Broker (property & casualty).

*Real-Estate Salesperson & Broker Certificates.

*Member, the American Trucking Association (ATA).-Since 2008.

 

Question:- I can tell you guys know this business. However, is there something specific that you can tell us that will convince us that you really care and we can trust you?"-Ricky,  Springfield, Oregon.

Answer:-Ricky, we can steer your business operations and tax returns successfully out of the intricate network of tax codes, tax rules, practices, and procedures in a similar manner to the way your drivers steer your trucks successfully over hills, slopes, Ice, precipices, mountainous and rugged terrains. How about that, Ricky?!!

 

Starting a Trucking Business.

You are entering a large/big industry. Truck companies are the biggest/largest employer in some states. Some truck companies are classified as fortune 100 and 500 companies.

Fuel and Insurance are the biggest operating expenses. It is very important that OD's know their COST per MILE before they agree to move load to specific/specified destinations. Your COST per MILE can change with the kind/type of terrain and fuel consumption (flat roads, rugged roads, hills, mountainous, etc.). 

***NOTE:-You can take a load that is a little over/above your cost per mile if the second load that you will carry back or carry forward will compensate for the money you lose on the first load (you lose a little on one load and gain on the other loads). That is an important business decision that every Truck owner must handle WISELY, especially if you have a strong business relationship with your freight broker.

#1) U.S. Dept. of Transportation(DOT):-If you are starting a Trucking Business, Get Registered. Log on this website (www.Transportation.gov), and get important government transportation information about CDL permit, MC, DOT, FMCSA, etc. You can call FMCSA (Federal Motor Carrier Safety Administration) directly (800) 832-5660. Some Freight Brokers will help you get training and registered.

#2) Top 10 Freight Brokers:- OD's with MC, DOT and ready to move Consistent/Steady load call, Worldwide Express (888) 643-8174; Panther (888) 584-1055; Swift Trnasportation (877) 497-8971; JB Hunt (877) 791-9458; Landstar (800) 872-9400; C.H. Robinson (855) 229-6128; Echo Global Logistics (800) 354-7993; Coyote Logistics (877) 626-9683; XPO Logistices (833) 934-2092

#3) Top Freight Bill Factoring Companies:- Get paid within 24 hoursIf you need Cash Advance for your Invoices; or if you need a Fuel Card to save on Fuel, call "DAT Freight Factoring" (800) 551-8847. www.DAT.com; OR Aero Fund Financial" (800)747-4234. www.AeroFund.com; OR "Cashway Funding" (888) 752-1443. www.CashWayFunding.com.

#4) File Your Fuel Tax Reports:- IFTA-100, Form 2290 and Form 903. Call "Permits Plus", (877) 722-8059. website www.PermitsPlus.com.; OR Call "Express Truck Tax" (704) 234-6005. www.ExpressTruckTax.com.

#5) Emergency Roadside Service-24/7:-(Serving, OD's, OO's, MC, Insurance companies, Dealerships, Finance Companies and Load Boards anywhere in the USA and Canada).

National Truck - (833) 387-1674   www.NationalTruckService.com.

RoadSide Masters - (888)381-7438   www.RoadSideMasters.com.

 

Questions & Answers

#1) Question:-I bought a Mark truck, formed an LLC, and leased the truck to a company that moves load for shippers. The company hires a driver, pays all the operating expenses, and send me a check every week. I want to file my tax return. Can you help me? - Jane, K, Dallas, TX.

Answer:-I can help you if you send me the truck Gross Income, and a list (An Analysis) of the Expenses that the company paid. The management company is required to send you a statement of the income & expenses every time they send you a check.

 

Testimonials

#1) "BIG MISTAKE!! I paid a lot of income taxes because I allowed the people that filed my truck fuel tax reports to prepare my business tax returns. I am looking at the e-mail you send me and I can't believe how much money you saved me.Wow!!-Eva Jordon, Atlanta, GA. 

#2) "Thanks for the information and encouragement. I reached out to Landstar & Coyote and I'm busy now. It's crazy how things have turned around for me. I'll see you tax time-Will Anderson, Edison, N.J.

#3) "The Bookkeeper in my Freight Broker office files my fuel tax forms. I was told by my friend that works for a trucking company to find an accountant that knows the trucking business. Through another friend, I contacted Barry; and he has been my taxman for over 18 years. He saves me a lot of money that I would have had to pay in taxes. He knows this business and he is very resourceful".-Greg McNilley, Carlsbad, CA.

#4) "The information you have given us is invaluable. We have leased a fleet of trucks and the leasing company has encouraged us to retain your services."- Allan & Tom, Shippers & Movers, Randall Ave., Bronx, New York.

#5) "I am an OD/OO. I am on the road and could hardly find time to go to a tax office and get my taxes done. I send my information to Barry and he gets the job done. The results have been better than I had expected. It has been this way for 15-years. Great guy!!" - Jerome Jenkings, Clear Water, Florida.

 

Types of Hauls (local & regional):- Specific kinds of trucks are used after the Shipper's Cargo and Transportation needs are identified (FTL, LTL, 3PL); and Distance(Short, Intermediate, or Long haul) is calculated. Hauls can be Hazardous Material(haz-mat), Refrigerated Cargo(Reefer); Concrete Mix; DryVan; FlatBed; Tanker; Heavy Haul; Intermodel; Container TransportIce Road(delivery over frozen lakes), Automobile; Oilfield; Private Sanitation, Heavy-duty towing; etc. Hauls can be EXPRESS or TEAM on Dedicated lines; or Consistent loads of a variety of freight on the same routes fom a Nationwide Network. RATES can be 52 to 60 CPM and Compliance Bonus for ON-TIME DELIVERIES; OR (27% of line haul + safe driver bonus + Transition Bonus +  On time delivery pay + Referal Bonus +Tarp & Stop-Off pay).

 

Box Trucks, Tractors, and  Semi (70 to 220 gals fuel tanks and up to 450 HP):-Peterbilt, Mack, Kenworth, GMC General, Freightliner, International, Norstar, Cummins, Leyland, Western Star, Workhorse, Volvo, Mercedes, etc.

Trucking Industry Overview - Barry's Accounting Services

 

Types of Trailers:- Step deck, Drop deck, Double drop deck, Removable gooseneck, and Flatbed. Call "Heavy Haulers" (800)908-6206. www.HeavyHaulers.com

People in various industries would refer to the trucking industry by different names, such as Inland Freight, Interstate Commerce, or Inland Marine. The cars we drive are brought to the dealers by trucks. Heavy equipment (tractors, bulldozers, cranes, etc.) to build roads, buildings and highways are brought to the construction site by trucks. The items that we purchase at the supermarkets and neighborhood shops are transported there by trucks. This includes lumber and hardware materials; and pipes used in the transportation of petroleum, water, and natural gas. In some states trucking companies are the biggest employers. Fuel price and fuel surcharge do have an effect on the industry. However, the industry will continue to dominate freight movement and the national economy as more fuel efficient trucks are being manufactured annually. There were over 120 million REGISTERED trucks including 1.95 million REGISTERED tractor trailers on the road in 2018, according to the Federal Highway Administration (FHA) statistics.

 

Trucker Insurance Coverage - Barry's Accounting Services Insurance Coverage

When my clients ask me how much insurance coverage I would consider adequate to cover their exposure, I often tell them to look at their net worth on their business or personal financial statements because that is what is at risk in the event they incur a catastrophic loss, including the verdict from possible lawsuits. The coverages I recommend are auto liability, physical damage, motor truck cargo, trailer interchange/drop lot, general liability, excess auto liability/umbrella, worker's compensation, occupational accident & health (OA&H), and pollution coverage.

Auto Liability Coverage
Auto liability coverage is an important coverage. The number of trucks a client has, the radius of operation of those trucks, the type of cargo the trucks haul, the client's loss history (loss experience) and the client's safety and control inspection must be revealed to the insurance broker and the underwriter. They would pull the client's record(s) from the Safety and Fitness Electronic Records system (SAFER). The records are maintained by the Federal Motor Carrier Safety Administration (FMCSA). The information there contains the results of inspections performed on the client's vehicles at the weigh stations by law enforcement, including the U.S. Department of Transportation (USDOT). These out-of-service reports disclose how often a client's truck has been taken off the road and the reason for the client's action. If a broker discovers a large claim during the search, s/he will get the specifics from the client and write a narrative explaining to the underwriters what has happened. If the underwriter feels the explanation has merit and the claim can be settled for less than the amount reserved for losses, then that will have an influence on his/her decision and the client will pay a lower premium.

Truckers Physical Damage Coverage - www.consultantbarry.com Physical Damage Coverage
Physical damage coverage is written on an actual-cash-value basis. A list of the value of the client's equipment and trucks are added together. Also, the MVRs of drivers are pulled from the DMV and driver safety procedures and past claims are reviewed. A company should hire the best drivers. Insurance companies investigations and claims data have shown that Drivers can become a trucking or shipping company's most valuable asset or its worst nightmare/enemy. Drivers complicity can include providing information to hijackers even when they are aware that the trucks are tracked by a GPS system, diversion of cargo to other truckers while it sits overnight in the terminal or parked trailer, parking their loaded trucks at unsecured locations, and neglecting to lock the tractor at truck stops. Dispatchers are keeping track of drivers. One company has managed to reduce driver retention rate and increase operations efficiency by hiring more experienced drivers with a history of job stability. They went from hiring 128 drivers down to 117 drivers, and they are hauling the same amount of freight. Another company claimed it saved $169,000 in administrative costs while increasing its business over 25%.

Motor Truck Cargo Coverage - Barry's Accounting Services Motor Truck Cargo Coverage
A broker and an underwriter will be concerned about the type of freight a client hauls and whether the cargo will be escorted by a security service. Security services are familiar with the neighborhoods through which the trucks must pass enroute to their destinations. They can map out safety routes for the drivers and evaluate the height of the clearance under the overpasses. The freight on board is valued at the invoice amount. It is valued at cash or market price on the date and at the place of shipment if it is not shipped under invoice. Cargo is covered when it is in-transit. The coverage ends when it arrives at the destination and it is transferred to the consignee or its authorized agent. A trucker who hauls refrigerated cargo needs coverage for losses/spoilage during the breakdown or malfunction of the refrigeration equipment. Cargo may be damaged by water, lost, or damaged during handling, it may suffer elements of contamination, theft, pilferage, and other perils. The most commonly stolen goods are food products, clothing, electronics, pharmaceuticals, liquors, baby formulae, and scrap metals because of the high prices those metals attract on the world markets. This information is also cited in the reports published by the Inland Marine Underwriters Association (IMUA) and the International Cargo Security Council (ICSC).

Trailer Interchange/Drop Lots
Drop lots are essentially transfer points. A long-hauler may leave a trailer on a drop lot where it will be picked up by a short-hauler, who takes it to the final destination. According to Insurance Claims Data, Drop Lots are breeding grounds for thieves and driver complicity.

Pollution Insurance
Truckers are encouraged to buy pollution insurance whether or not they haul hazardous freight (haz-mat). Pollution is an exclusion under the auto liability policy. This coverage is relatively inexpensive for haulers who are not involved with haz-mat.

 

Truckers Tax Deductions - www.consultantbarry.com #1)E-mail Received

"What is the typical cost range including operating costs for a new or used tractor/trailer, and what's the average life span?"-Karen. D, Houston, TX.

Answer
Depending on the make and model, a new long haul, "High-End" tractor (with sleeping area) can cost $120K to $140K. The finance company would give you up to 5-yrs to pay off the balance of the loan. The tractor can run for up to 1 million miles before the engine is due for rebuild. Depending on the model, a new air ride trailer can cost between $25K-50K and the financing company will give you up to 3-years to pay off the balance of the loan. You may be required to repay the finance company about $20K to $25K annually for a new tractor & trailer.

Fuel can cost you about $65K (20K gals) depending on your route and how long your truck runs. Group Insurance $10K; maintenance $5K-15K annually, for a new or used the tractor & trailer. Front tires $1,000 each and rear tires $400 each. The life span can run up to 5-years before major repairs are needed. It depends upon the kind of operations that you are involved with (trade cycle, warranty and depreciation schedule) and the annual mileage that you are covering. Everything must be factored into the kind and scope of your maintenance schedule.

Steven Transportation, Swift Logistics and other Trucking Companies that I mentioned above replace their fleet continuously. You may be able to purchase a high quality pre-owned truck from those companies. If you want to buy new trucks and trailers, your best bet is to attend the Mid-America Truck show, the Mid-West Truck show, or the Great American Trucking Show in Dallas, TX; and don't be afraid to ask questions. Those shows offer everything that you can think about in the trucking/transportation industry.

 

#2)E-mail Received

"I am a class "A" OTR with haz-mat and tank endorsements. I have been working for companies for 13 years. I am starting my company as an O/O and I will be soliciting freight from Brokers whom I have built a relationship with over the years. I am offered a pre-owned, well-maintained 18-wheeler, 2005 Ken worth T-2000 with 400,000 miles. The truck cost $62,500, 9.5%, five years. Trailer $25,500, 6%, three years. I plan to be on the road for nine months a year. Diesel 5.8 ml's/gal.; tolls, registration, etc., $3,500. How much load do I have to haul to be able to break even in the first year?"— E. McAllister, Walnut, CA. 

Answer
Owner-operator wants to know the value of the freight that his truck must carry to cover operations cost in the first year of operation.

Click to view the cost chart (opens as a .PDF).