Finally got my own truck

It was King David 2 Samuel 24, man and is pride, I'm guilty.

 

They still need probable cause, which is more than just a hunch.

My philosophy with cops is this... They get to see the business side of my truck when asked. The sleeper is off limits without probable cause or a warrant. Traffic stops that don't include an inspection are supposed to be limited to 20 minutes, give or take, as per the Supreme Court.

I'm not saying to be a jerk, just know the guidelines, and try to make the officers stick to them.

Just because they have a badge and gun doesn't mean they can lawfully detain you without cause. And if they do anyway, try to document what you can, both on video and on paper, and get thru it as amicably as possible, dealing with any overstepping of authority later.

Never threaten cops with court. State that you know when your rights are being infringed, and leave it at that. Record, record, record. Learn your rights, because you don't have rights unless you know and use them! Good cops shouldn't have a problem with this.

 

Oh, one thing cops like to do, apparently, is to use our fuel rewards cards against us. To me, those are off limits without a warrant.

 

Actually if you purchased the truck via a loan or cash, then you can deduct the entire thing if you'd like. December of last year congress last minute passed a continuation of the 179 deduction. It lasts through this year. Check out more here: Qualifying | Section 179 Tax Deduction | Section179.Org

If your leasing you can only deduct what payments you have made this year.

However, you may want to deduct just enough to help with your tax burden, but still pay a good amount of taxes so you can save future % of the truck to deduct.

And yes, once you start making real money it's a double punch to the gut come tax time. Provided your not paying estimated taxes quarterly.

 

It's actually so nice to see people wishing good luck for this guy! I haven't seen any negatives yet! I have bought two trucks in my life. I was burned both times. The second truck I bought it sounded great. I test drive it all seemed great. I got about 5 min from home and it started knocking! Long story short I was out 10,000 and never hauled a load. I can't go out and buy one. I have looked for 3 years. I'm always on truckers report, Craigslist, truckpaper, etc... your going to do great though! You go older and your paying someone to work on it all the time, or you go newer and pay on a truck and not have near the problems. As a O/O for a short time I can tell you this. Make sure you put so much back for breakdowns, even though most is covered now one day it won't be and you will have a lot of money there, have money for fuel of course, being a O/O now watch your time. Clock management is going to get the load there, or having to stay over night cause you didn't calculate time right. Also up front costs if the company isn't paying IFTA, Heavy highway taxes, etc... At the end of the year be ready to pay cause u will be 1099 since it's on you now. Make sure you keep all fuel receipts, food, break downs, anything out of pocket is a write off. I wish you the best! I honestly think you won't fail. Worst case scenario post it online for sale and keep driving it until someone buys it. Pretty much in life you are never stuck unless you join the Military, or are very dumb with your spending. My last word of advice I have lived with my whole life is. It doesn't matter how much you make, it's how much you spend. Other drivers out there might make 200,000 a year and that is great, but if there spending 200,001 there still in the hole, but like you said no kids, no wife, live it up buddy!! Once again I wish you the best!!!!

 

Absolutely correct. Take the depreciation down to where you get into the 15% tax bracket, but no more. The goal is to stay out of the higher brackets in future years as well.

Don't forget the 15% (roughly) of self employment tax, either. That's the kick in the nuts I enjoy least every year.

If you have an AGI of 85k, you should also consider forming an LLC (taxed as an S-corp). This would keep you from paying self employment taxes on the difference between your salary and your profit (say $45,000 salary, $40,000 profit -- or 15% on $40,000 is $6K in taxes saved).

As an LLC owner, you can also pay yourself in per diem, which would lower your AGI the same, but you would then still be able to take your standard deduction. Worth another couple of thousand.

 

Yessir. That's pure gold right there guys.

 

Don't depreciate the truck in 1-2 years. You will get killed in the 3rd year and on. I was thinking you have a lease, which the entire amount of your payment should be deductible. Also your trailer lease should be the same way. That's the beauty of a lease. If you purchase, do a 4 or 5 year depreciation schedule. Big repair bills, which you shouldn't have right now, can be spread out over 2-3 years depreciation. Also don't forget to take out your bosses money from your income line. Like say a $30,000 overhaul. Find a good Truck accountant that knows trucking, anyone else might miss deductions you are entitled to. Just my .02

 

Look at self 401k with an account ant.