American Trucking Associations’ advanced seasonally adjusted Truck Tonnage Index fell 0.3 percent to 160.4 in July following a revised 0.8 percent increase in June. Year-to-date, truck tonnage is up 6.8 percent over the same 2003 period. “July’s truck tonnage data corresponds to an economy that has taken a breather this summer,” says ATA Chief Economist Bob Costello. “However, there are still plenty of reasons to believe that tonnage will continue to grow solidly for the remainder of the year.” Costello cited strength in the manufacturing sector, especially in capital goods. “While the economy is growing slightly slower than anticipated, increases in the tangible goods portion of the economy are good enough to expect solid, but probably more moderate, growth in truck freight.” The base year for the index is 1993.
U.S. Department of Transportation has shifted responsibility for the Motor Carrier Financial and Operating Statistics Program from the Bureau of Transportation Statistics to the Federal Motor Carrier Safety Administration, effective Sept. 29.
Illinois Gov. Rod Blagojevich has proposed raising Illinois Tollway fares, effective Jan. 1, for the first time since 1983 to pay for a 10-year, $5.3 billion overhaul of the 274-mile system. Under the plan, which the tollway board had planned to review Sept. 30, commercial vehicles will see a larger increase than cars based on number of axles but can obtain a congestion-pricing discount when driving between 10 p.m. and 5 a.m.
Why are we talking taxes in October? Because we all want to save on taxes, but often we don’t think much about it until March or April. By then, it’s really too late to do much good. For clients that wish it, my firm schedules pre-Thanksgiving meetings to review company and personal tax situations for the year. Wait until later and you’re too caught up in the holiday season. Having a strategy for yearend moves by mid-November gives you up to six weeks to take actions that could save thousands of dollars in the spring.
For your pre-yearend tax-planning meeting with your accountant, you need company financial statements, compared to the prior year and also spread on a monthly basis, and personal income information, such as year-to-date payroll stubs and information on other sources of income. Note any significant changes in your personal deductions, such as for medical, taxes and charitable contributions.
Your accountant’s first task is to project roughly the company’s full year first, then for you personally, and to compare it to the prior year. Any inconsistency should be reviewed for evidence of possible problems – or opportunities. After that, there are several key steps toward shaving big dollars off your tax bill.
Plan for the company’s yearend close. Pre-yearend planning is a time to review the proper valuation and recording of assets and liabilities. Scan receivables and write off any that are really worthless. Make sure inventories are not overvalued. Check the Equipment and Fixed Asset Lists for abandoned or worthless equipment and write them off. Review the payables to ensure that all are being recorded in the right periods.
