Page 35 - ATR 6 2014 web

ment based solely on whether or not taxes on income you haven’t received
they needed it, while keeping a close (even if it has been billed), and you Truck Safety
eye on whatever changes occur in will not deduct on your bills that you
Washington. haven’t yet paid.
If you are a cash basis taxpayer, Program
Strategy two - State IncoMe then pay everything you can pay before
taX dedUctIon year-end. This means the check has
If your company has had a good to be written and in the mail by Dec. Funding
year and you’re flush with new capital, 31 in order to be deductible. If you are
one strategy might be to consider some accrual basis, then you should make
of those known expenses you’ll have sure you accrue those expenses when
in 2015 and capture those payments the bill comes in during the middle of APPLICATIONS NOW
sooner rather than later. They will need January. BEING ACCEPTED.
to be paid eventually so it may be better
to have those expenses now rather than Strategy fIve - caPItaL The Arkansas Commercial
later if you are a cash basis business. PUrcHaSeS Truck Safety and Education
For those businesses that have a A lot of companies are looking Program has begun its first
state income tax, consider paying it to add equipment or other assets as application cycle.
before Dec. 31 to get that deduction their business grows. But it’s not only
in 2014. If you are a C Corporation, important to buy it before year-end. You
then those state taxes are deductible need to have it in hand. If it’s time to
at the corporate level. If you are a go on a buying spree and if you do plan
pass-through entity, then those taxes to buy equipment before year-end, make
are deductible on the personal level. sure it is on the yard and in service by
However, there are some income Dec. 31. If you have not taken delivery
limitations. This also assumes you have by that date, then it is not considered
enough itemized deductions and are not in service, and you do not get a APPLICATIONS ARE AVAILABLE AT:
subject to the AMT. depreciation deduction for that.
ArkansasHighways.com/ACTSEP.aspx
— or —
Strategy tHree - MULtI-State Strategy SIX - PLan now for Arkansas Commercial Truck Safety
taXatIon 2015. and Education Program
You should make sure with your I know I said there are five c/o Arkansas State Highway and
CPA that you are filing multi-state tax strategies here, but the first and last Transportation Department
returns in the appropriate states. Most strategy is to plan early and often. If Program Management Division
P. O. Box 2261
trucks run in multiple states, and your you’re just now talking with your tax Little Rock, AR 72203-2261
company may need to file in some of advisor, then you’re starting far too late. — or —
the states where they haul, pick up or Get an earlier start next year preferably Arkansas State Highway and
deliver freight. The rules requiring a as soon as you’ve finished the five Transportation Department
company to file in a state it does busi- strategies listed above. Plan to meet Central Headquarters
ness in are different for every state. The with him or her at least quarterly to 10324 Interstate 30, Room 501
best way to know if you need to file in keep you on the road to higher profits Little Rock, AR 72209
multiple states and in which states is and no later than the middle of 2015 Telephone: (501) 569-2261
to consult your tax preparer. Because of to start preparing tax projections. It is Fax: (501) 569-2623
the variation in tax rates among states, better to know where you are now to Email: LFPA@ahtd.ar.gov
if you are apportioning all of your plan for where you will be 12 months APPLICATION DEADLINE:
income to one state, you may be paying from now. FEBRUARY 2, 2015, 4 P.M.
too much.
Richard Bell is the CEO and managing
partner of Bell & Company, PA. He is
Strategy foUr - caSH vS. a CPA and an Attorney at Law. Jeff
accrUaL BaSIS Lovelady is also a partner at Bell and
What’s your status, good buddy? Company, PA and he is a CPA and the
It’s a serious question, and it could help manager of out Trucking Division of the
you in your 2014 tax liability. If your firm.
status is cash basis, then you don’t pay

arkansas trucking report | issue 6 2014 35