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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > State Corporate Tax on Trucking Companies
Expert: John Kirk, CPA
Date: 9/27/2008
Subject: State Corporate Tax on Trucking Companies
Question
My wife and I own an S-Corp trucking company in Missouri. We received notice from Nebraska that we owed corporate taxes for business conducted in Nebraska, delivering and picking up loads.
I asked a friend who also owns a trucking company and he said there are 20-something states that we probably owe if we delivered or picked up one load a year or operated in their state. Is there a list of those states somewhere? Do we owe if we operated at a net loss for the year? (We have the past 2 years).
This may be the last straw for us, trucking has become a huge cash flow with no net profit at the end.
Thank you,
Loren
Answer
You should be filing state income taxes to all states that you operate in. You allocate to those states based on a four factor allocation. The four factors are: Sales, Property and Payroll (With sales counted twice)
If you had a net loss for the year, just mail them a copy of the 1120S filed with the IRS with a note that there was no taxable income for allocation.
John Kirk, CPA
www.johnkirkcpa.com
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