Month: August 2011

Categories
Lifestyle Newbies

How to Use Transportation Expenses as a Tax Deduction

Small business owners who file Schedule C may deduct all business-related transportation expenses. Employees and independent contractors may use their job-related travel as a tax deduction by filing Form 2106. Other types of transportation expenses may be deductible on the forms for which their underlying purposes are deductible.

1
Keep a small notebook or calendar booklet in your glove compartment to enter all deductible automobile travel, including distance traveled, starting and ending odometer readings.

2
Include the purpose of trip and expenses paid for gasoline, oil and maintenance.

3
Check the Instructions for Schedule A to determine the destructibility of your transportation expenses for purposes such as making charitable donations, attending job-related educational programs and going to the doctor or the hospital. Use these related transportation expenses as a tax deduction by including the expenses, according to the applicable instructions, when you take the deduction for the underlying purposes.

Use Schedule C to Deduct Business Transportation Expenses

1

Fill out the information section on your car in Part IV of Schedule C and total your business car and truck expenses on line 9 of Part II.
2

Record other business travel expenses, including train, air, taxi, parking, public transportation and leased or rented vehicles as part of your total for line 24a. This total may include other costs such as lodging.
3

Complete the rest of Schedule C and file it with your Form 1040 to deduct your business transportation expenses.
Use Form 2106 to Deduct Employee Transportation Expenses
1

Complete Parts A through D of Form 2106 to calculate your vehicle expense. You may disregard Parts C and D if you opt to use the standard mileage rate instead of calculating actual expenses.
2

Enter your vehicle expense from line 22 or line 29 at line 1 of Form 2106.
3

Provide the total of all other non-overnight employee transportation costs including parking, tolls, mass transit and train travel on line 2 of Form 2106.
4

Finish filling out Form 2106 and file it with Schedule A and Form 1040 to take your deduction for employee transportation costs.

Categories
Lifestyle Trucker News

How to Start a Transportation Company

Transportation companies transport goods or people via taxis, shuttles, ferries, limousines, buses or freight companies. If you’re interested in starting a transportation company, you will first need to define a structure for your business. Start with a business plan to help you identify a need and any competition.

Define your business. Freight companies move vehicles across the nation and overseas for commercial and individual clients, such as car dealers who may need to move a handful of cars to another locale or individuals whose jobs have moved them across the country. A freight company will have significantly higher start-up costs, insurance needs and manpower. Local transport companies may service hotels, restaurants, schools, and tourists. A school bus service may charter kids to school. Another option is to start a moving company for residents moving within the local area.

Get licensed, insured and registered. Select a relevant name for your business that includes the type of service you provide and then register your business and purchase liability insurance. Obtain the required license for your company. For example, if your company will include buses, trucks or vehicles designed to carry more than 16 people, you will need a commercial driving license. If operating a school bus company, contact your local motor vehicle department to learn the requirements for procuring a school bus driver’s license. Additionally, companies that move passengers or cargo across state lines may be required to obtain a USDOT (U.S. Department of Transportation) number.

Find a location for your business. A taxi or shuttle service should be situated near hotels, airports or downtown. If operating a school bus service or freight company, look to move into an old warehouse to eliminate construction costs and zoning concerns.

Procure your commercial vehicles. Find reliable mechanics who are skilled on your particular makes and models. When first starting, you may have a small fleet, which means that anytime a vehicle breaks down, you are literally losing money. Quick repairs are imperative. Purchase commercial auto insurance for your vehicles. Hire trained and licensed drivers with clean records. Purchase workers’ compensation for your employees.

Procure a website for your transport business. Then invest in reservation software that can help you organize and track your reservations. Look for software that can integrate with your site and will provide your customers with accurate quotes, assign staff and vehicles, and display trip routes, cancellations, baggage options, freight handling and accommodations. On your site, detail policies for pets, cancellations and reservations. Hire a dispatcher or receptionist to take calls.

Categories
Lifestyle Trucker News

Truck Driver Safety Topics

Safety is one of the top concerns in the transportation industry. From adherence to road safety regulations to following best practices guidelines, safety on the road is essential to ensure problem-free transportation of goods and passengers. Reviewing truck driver safety topics on a routine basis can help decrease accidents and ensure drivers are familiar with the latest safety rules and recommendations.

Weight Limits

Semi-trucks are authorized to carry limited loads based on the type of materials, the size of the trailer and the state regulations where the truck will transport goods. These weight regulations ensure transportation safety and the long-term usability of highways and roads. Truck drivers should know how to properly measure the weight of their loads, how to balance loads for safety and the procedures used to monitor weight limits by law enforcement personnel.

Bad Weather Conditions

Wind, heavy rains and stormy conditions pose extra safety threats for truck drivers. Poor weather increases the time required for trucks to stop on slick roads, can impede visibility and can cause the truck to sway erratically due to wind gusts. Truck drivers should know how to drive in rainy conditions, emergency procedures, when to stop driving due to danger and how to limit the impact of poor conditions on their driving.

Equipment Failure

Faulty breaks, light failure and air brake problems can all pose serious safety concerns for truck drivers. In-depth knowledge of emergency handling procedures for all types of equipment failure situations can help avoid accidents and potential injury. Truck drivers should be able to perform alternative stopping methods and evasive maneuvers, use emergency equipment such as a Jake brake and know how to call for assistance when their equipment fails.

Visibility

Truck drivers have limited visibility and often encounter situations where blind spots can cause safety concerns. The effect of blind spots can be minimized through proper mirror placement, strategic lane change procedures and advanced turning options. Truck drivers can avoid accidents with smaller vehicles traveling beside their truck by using their signals, by slowing down or speeding up to obtain a clear line of sight, and by planning for directional changes in advance.

Truck-Specific Limitations

Semi-trucks and trailers have special rules and limitation beyond the standard automobile. These limitations include state laws that limit where trucks can travel, the lanes they are able to use on interstates, truck-specific speed limits and in-city restrictions. New and seasoned truck drivers must understand the driving restrictions for every city and region in which they drive a truck.

Categories
Freight Brokers

Broker Authority Questions

The word “broker” derives from Anglo-Normandian brocour “small trader”, of uncertain origin, but possibly from Old French brocheor “wine retailer”, which comes from the verb brochier “to broach.

A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker
who also acts as a seller or as a buyer becomes a principal party to the deal. In general a broker is an independent agent used extensively in some industries. The prime responsibility of a broker is to bring sellers and buyers together. Therefore, a broker is the third -person facilitator between a buyer and a seller. Brokers also can furnish considerable market information regarding prices, products and market conditions. Brokers may represent either the seller (90 percent of the time) or the buyer (10 percent) but not both at the same time. Brokers play a huge role in the sale of stocks, bonds and other financial services.

Broker Authority Questions

Q. What is an MC Number?
A. A Motor Carrier (MC) number is issued by the FMCSA. It grants the right to commence operations in interstate commerce in the transportation industry. There are several factors involved in obtaining an MC number including having BOC 3 Process Agent and a Surety Bond or Surety Trust.

Q. What are BOC 3 Process Agents?
A. A BOC 3 process agent is someone who may be serviced with court papers in any proceeding brought against a broker. In order to obtain your authority, you must have a list of BOC 3 Process Agents available to be serviced on your behalf.

Q. What is a Surety Bond or a Surety Trust?
A. A Surety Bond or Surety Trust is a safe guard for carriers to collect monies for nonpayment from a broker. The bond or trust must be in the amount of $10,000. The main difference between a bond and a trust is that a bond is through an insurance company and a trust is through a financial institution.

Q. How long does it take to obtain freight broker authority?
A. It takes approximately 16 business days to obtain broker authority provided a bond or trust is in effect within that time frame.

Q. How much does it cost to get your authority?
A. Obtaining your broker authority is only $685 through GLAuthority.com. This includes: all federal and process agent fees and same day processing. Our streamlined process allows you to start brokering as quickly as possible!

Traditionally, only the wealthy could afford a broker and access the stock market. The internet triggered an explosion of discount brokers, which allow investors to trade at a lower cost, but don’t provide personalized advice. Because of discount brokers, almost anybody can afford to invest in the market.

Categories
Freight Factors

Transportation Industry Update

Just a quick update to keep everyone in the know on what is going on the transportation industry.

Markets continue to deteriorate and with this meltdown truckload rates are plunging to depths not seen in 9 or 10 years. Fuel prices have dropped and stabilized to a point where most carriers and brokers are quoting flat, all in prices as everyone scrambles for scraps of business to keep companies afloat.

Trucking companies are shedding drivers, office staff and equipment in an effort to balance demand with their capacity, and balance expenses with their bottom lines. Their revenues are plunging, but so are their expenses to a certain degree. Certain lanes are worse than others when it comes to depressed rates and we will more than likely see additional trucking companies close their doors this year. The ones that can hang on through our recession will thrive and carry a big stick when things turn and truck capacity falls below truck demand. Companies that have a diverse customer base are situated best to survive these hard times.

Shippers are taking advantage of the markets by sending out as many RFPs or Bid Packages as possible. Times are tough for most companies and I don’t blame them one bit for shopping out their freight. Their transportation costs went through the roof last year with high diesel prices and it might balance things out a little if they can experience cost savings this year.

Categories
Freight Loads

Ford, Toyota Partner for Light-Truck Hybrid System

Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford’s former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford’s methods came to be known around the world as Fordism by 1914.

Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota City, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide, and was the world’s largest automobile manufacturer by production. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father’s company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors, along with several “non-automotive” companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Today, Ford Motor Company and Toyota Motor Corporation have announced plans to collaborate on development of a rear-drive hybrid system for light trucks and SUVs.

While both companies have been working independently on hybrid setups for trucks, they found common ground upon entering discussions about a possible collaboration, according to a news release. The system will be based on all-new architecture and share common components, but Ford and Toyota will individually integrate the system into their vehicles and calibrate the system’s performance, according to the release. The companies believe they can introduce hybrid technology to trucks and SUVs faster and more affordably together than either could by working alone.

“This is the kind of collaborative effort that is required to address the big global challenges of energy independence and environmental sustainability,” said Ford President and CEO Alan Mulally.

Toyota President Akio Toyoda called the deal, “an important building block for future mobility in the U.S.”

Ford and Toyota will also work together on standards and technologies to help improve their vehicles’ telematics systems. While currently in the preliminary stages, the companies expect to formalize the agreement next year.

Categories
Lifestyle

Pennsylvania turnpike seeks input from truckers on All Electronic Tolling

Calling all truckers who use the Pennsylvania Turnpike. The Pennsylvania Turnpike Commission launched an online survey Aug. 4 for its cash-paying customers as part of a year-long feasibility study to determine what impact a potential conversion to a cashless All Electronic Tolling (AET) system would have on motorists and turnpike operations.

The survey quickly drew 10,000 responses from four-wheelers, but only 100 so far from cash-paying truckers.

The survey will continue online until Aug. 22, 2011 and the respondents can win a $100 Sunco gift card.

The turnpike panel said AET would allow all Pennsylvania Turnpike customers to pay without slowing down or stopping.

With AET, traditional tollbooths would be removed and everyone would pay electronically with E-ZPass or new payment options that would be developed for non-E-ZPass customers. These new options would involve capturing an image of a license plate and billing the registered owner of the vehicle for the tolls.

The survey, which takes only about eight minutes to complete online, can be accessed at www.paturnpike.com/aet. It includes questions on subjects such as turnpike travel habits, payment-method preferences and perceptions, possible toll-rate structures and other cashless-tolling queries

Categories
Business Lifestyle

How to Transport a Truck

Whether purchasing a new truck, selling an old one or moving your truck with you, finding the best transportation for your investment is essential. The vehicle transportation industry is huge and filled with both very helpful, and not so helpful, professionals and advice. Between professional resources and the do-it-yourself options available, choosing the right option can be difficult and confusing. Fortunately, choosing the best option for your needs requires little more than some research and the proper documentation.

1

Research the companies. Before you commit to a professional, check the company’s reputation through the Better Business Bureau and through customer reviews via the Internet and phone. Contact the companies via phone to get answers to all your questions regarding delivery radius, costs and necessary documentation.
2

Select the method of transportation. Many transport services offer two types of delivery. The first being transportation via tractor-trailer, the second being a hotshot truck. Tractor-trailer transportation tends to be cheaper but can be difficult to arrange. Tractor-trailers carry 40-foot-long trailers and have limited turning capabilities. This makes navigating residential locations difficult, requiring parties to meet somewhere else, like an open parking lot. Hotshot trucks, which are pickup truck-style transports, provide faster delivery and easier pick ups, but are more costly as they only carry one or two trucks per load.
3

Prepare the truck for transport. Collect all your necessary documentation and save it in a folder or other safe place. Make sure the truck is clean of all your personal property and keep an extra set of keys available in case of emergency.
4

Transport the truck. Arrange to arrive at the agreed upon meeting place at least 30 minutes early. This will give you a time buffer in case of unforeseen circumstances or an early pick up. Give all the necessary paperwork to the transport driver.

Categories
Lifestyle

How to obtain a Driving license?

It is not legal to drive without a valid driver license. Every state in U.S. has different rules and regulations for motor vehicles. Even though the basic rules are the same you must verify with the regulations of the local Department of Motor Vehicles in your area. This article focuses on the California State DMV procedure.

There are two steps involved for getting a driver license. First is the written exam and the behind the wheel test (also known as a road test).

The written test is a test of traffic laws, road signs, and driving safety rules. You will get a book (driver’s handbook) to study for this exam. Study it thoroughly. There are 46 questions on the test. A passing score is at least 39 correct answers. You have three chances to pass the test. You are allowed to take a retest in one visit. If you fail three times, you must wait 7 days before taking the written test again. No written tests are administered after 4.30 pm on regular business days.

The basic procedures:

Step 1 Written Test

Visit a DMV office (make a prior appointment for a faster service).
Submit the completed application form, along with the fee. No copies are accepted.
You need to give a thumb print and have your picture taken.
Provide your social security number, and proof of your date of birth.
Pass a vision test
Take the written test.

You will get a temporary permit. If you have never been licensed before, you may use this permit to practice driving. During all the driving sessions, you must be accompanied with an adult who must be 25 years of age or older and holds a valid state license. It is illegal for you to drive alone. You can also take classes from some Instructor. Once you are comfortable in driving take an appointment for a behind the wheel test (road test).

If you have moved to U.S. from India, you will be required to take a driving test. If you already have a license from another state, the driving test can be waived.

Step 2 Driving Test

To take your driving test, you need to make a driving test appointment by calling a toll free number 1-800-777-0133 between the hours of 8 a.m. and 5 p.m. Monday-Friday.
You must provide the following at the time of the driving test:

Provide proof of financial responsibility
California Insurance Requirements

Like the written test, you must pass the driving test in three chances. If you fail three times, it means that you must practice. Make an appointment once you are fully prepared. For each additional driving test you must pay a $6 fee.

The test normally takes 10-15 min. It is a 100 points test, and minimum 70 is passing. This criteria is subject to change. After you pass your driving test you will be issued an interim license valid for 60 days. You will receive a new photo license in the mail.

Categories
Lifestyle

Poor Economy Affects Truck Driving Jobs

Truck driving jobs are a good way to make a decent income and provide for your family, if you can find the right trucking company to work for among the thousands of companies available. But, what about during a poor economy? Recent news is now declaring what many of us have already known…a recession is here. Actually, it’s been here since December of 2007. Thousands of loss jobs occur every week, with unemployment sitting at its highest level since 1993, currently setting at 6.7% – so what about trucking jobs now?

The truth is, trucking will always be a necessity in our market and society. It will also feel the recession crunch, but truck driving jobs are still available and always will be. The trucking industry could see an enormous downturn if Congress does not assist the hurting auto makers, but another bail out will probably come into play. Personally, I feel the auto makers did it to themselves and our Government cannot continue to bail out every single industry, but our Government is so out of control anyway, they will more than likely continue to do so.

On the other hand, if nothing is done to help the auto makers, the massive viral effect will spiral down through out the entire country and abroad. Millions and millions of jobs would be lost, even effecting the trucking industry. Just consider how many millions of tons of freight is hauled every day within the auto industry. If all of that goes up in smoke, a lot of trucking companies and drivers would be without a job. The transportation industry is so vital to our economy, Congress has no choice but to bail out another industry…even though it was Congress which created the problem in the first place. So as sad as it may be that the Government is now grabbing control of our mortgages, it appears they will attain control over the auto industry as well…their plan for socialism is finally coming to pass…but, that’s another story.

The importance of the U.S. transportation industry is too vital for our economy. Truck driving jobs will always be around, even as the rest of the economy falls. Will truck driver jobs stumble also? I’m sure it will, but as other sectors of the market place stumbles, trucking will have to continue. Everything we receive, eventually comes by truck. There is no way around it. The most truthful statement is that “without trucks, America stops.”

Just last month, November ’08, over 500,000 jobs were lost. With that scenario playing out every day across America, truck driving jobs still continue to provide decent, secured employment. We could see driver jobs become a little tougher to achieve as millions of jobs are lost during this poor economy, and those people search for new vocations, but the need for our transportation system to continue is vital. This vitality assures that truck driving jobs will continue to be an excellent vocation for security…as long as you know the good trucking companies from the bad.

Aubrey “Allen” Smith is the author of the first and original Truth About Trucking. An expert in Motor Carrier Transportation, he is the most recognized advocate for assisting students and new drivers in locating the best truck driving jobs in the nation.