Taxes

Since this site focuses mainly on helping people get into the industry driving for COMPANIES - probably not the best place for an O/O to ask for tax advice.

"I've been told by other truckers" - doesn't necessarily qualify as "good tax advice". Going to a CPA that has specific knowledge of O/O Trucking Taxes does.

Assuming your "Trucking Business" is a BUSINESS (SubS, LLC, etc.), you could "charge the company" for your labor, and write yourself a CHECK for "reasonable labor at current market rates" - but you're going to have to put that on a W-2 or 1099 to yourself (depending on how your COMPENSATE YOURSELF AS DRIVER/OWNER). So you can "lose it" as an expense from the company that way - but you GAIN IT AS INCOME on the personal side. $$ doesn't just DISAPPEAR, if it "leaves your company books" - it has to GO SOMEWHERE. This is simple "general accounting principle".

And I'm not a CPA or tax attorney - so don't take my advice. But I have run a business for decades that files both corporate and personal taxes (with a CPA doing the heavy lifting).

Rick

You need to talk to a CPA.

This is absolutely correct. Not a tax prep guy, a CPA. If you don’t, you are doing yourself a disservice. A good CPA will pay for themselves in savings.

you can "lose it" as an expense from the company that way - but you GAIN IT AS INCOME on the personal side. $$ doesn't just DISAPPEAR, if it "leaves your company books" - it has to GO SOMEWHERE.

Thanks Rick! That was beautiful.

I have a lot of experience with accounting from running my business. It always cracks me up when people want to be self employed, or in our case Owner Operators, so they can gain all these so called "tax write-offs." My first thought is, "You mean you actually want to have a bunch of expenses?" That's what makes something tax deductible.

If a person is making money, they are going to pay for it. There's just no free lunch. Many people are losing money in business without even realizing it. I enjoyed all those years of running a business, but I also am really loving the independence of being a successful company driver and knowing I'm going to get paid every week!

You need to talk to a CPA.

This is absolutely correct. Not a tax prep guy, a CPA. If you don’t, you are doing yourself a disservice. A good CPA will pay for themselves in savings.

Grumpy is absolutely correct. I use a CPA (no H&R Block, no no no) and she saves me much more every year than what she charges me. I wish my ex-wife had done the same.

Thanks Rick! That was beautiful.

I have a lot of experience with accounting from running my business. It always cracks me up when people want to be self employed, or in our case Owner Operators, so they can gain all these so called "tax write-offs." My first thought is, "You mean you actually want to have a bunch of expenses?" That's what makes something tax deductible.

If a person is making money, they are going to pay for it. There's just no free lunch. Many people are losing money in business without even realizing it. I enjoyed all those years of running a business, but I also am really loving the independence of being a successful company driver and knowing I'm going to get paid every week!

Any O/O had better be running a corp - if for nothing else - shielding from personal liability in the event of a mishap.

O/O's still retain better tax advantages that many "company drivers" lost in the recent tax restructuring (per diem deduction and others) - but the rules still have to be followed.

For me having a great accountant, who is also an old personal friend and a client - I have an easy time on the bookkeeping end - I just run everything through quickbooks and let him figure it all out.

Rick