I'm taking the L/P plunge

Net before taxes

 

Isn't net after taxes?

 

I'm not a tax expert, but I understand that "Gross Pay" is BEFORE tax, etc deductions; "Net Pay" is AFTER deductions.

Just my .02.

God bless and have a great and safe Holiday weekend.

 

In this case it is net after the truck payment, fuel and all other operating overhead for the truck for that week.

Let's say a lease operator earns $1.35 a mile but the overhead is $0.80, we say we net $0.55 cents per mile before taxes.

 

How much do you stick back to cover your taxes?

 

Conventional wisdom says hold back 25% to slam dunk your taxes.

 

Ok, so your saying in your example its 25% of the .55cpm?

I heard some hold back 7 to 8% of the total gross before any expenses. I imagine the math is roughly the same.

 

It has a name, it's called EBITDA ... The reality if you are paying more than 10% tax you need a new accountant. In three years I've yet to pay more than 4% total for self-employed, federal and state.

 

As a L/P operator, I net the equivalent of a company driver making 41 cpm. That's after all expenses and taxes.

 

I just finished two nice loads, and after all expenses, I netted almost .50/mi. Of course getting almost 9mpg sure did help and getting some cheap fuel.