Truckers Report Jobs

Find Trucking Jobs

Company Driver Company Driver Dry Van Dry Van Flatbed Flatbed Refrigerated Refrigerated Specialized Specialized Owner Operator Owner Operator
More Trucking Job Searches ⌄ Fewer Trucking Job Searches
⌃

Deducting The Percentage The Company Keeps?

Discussion in 'Trucker Taxes and Truck Financing' started by theSoz, Jul 10, 2021.

Page 1 of 3
  1. Jul 10, 2021 #1
    theSoz

    theSoz Light Load Member

    161
    385
    Jan 24, 2020
    0
    For those O/O that are leased on to another company, say LandStar for 65%, can you deduct the other 35% (LandStars cut) as a business expense?

    Honestly, I’ve never heard of this but was recently told by a “tax strategist” that the IRS can consider this aa fee required to do business (essentially a fee to lease on) with that company and therefore it is tax deductible.

    Anyone?
     
    theSoz, Jul 10, 2021
    theSoz, Jul 10, 2021
    #1
    77fib77 Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Jul 10, 2021 #2
    Ridgeline

    Ridgeline Road Train Member

    22,640
    120,716
    Dec 18, 2011
    Michigan
    0
    You can’t deduct the difference of what you make and what the customer is charges because it isn’t your legal customer, it is landstars or any carrier that you are contracted/leased to.

    the irs doesn’t consider this as a fee and the irs has actually ruled on this back in the 90’s, get an EA or a good tax lawyer to explain how lease and contracts work when it comes to taxes.
     
    Ridgeline, Jul 10, 2021
    Ridgeline, Jul 10, 2021
    #2
    baha, p608, slow.rider and 1 other person Thank this.
  4. Jul 10, 2021 #3
    theSoz

    theSoz Light Load Member

    161
    385
    Jan 24, 2020
    0
    As I mentioned above, I had never heard of such thing and this “tax strategist” (again in quotes”) was the one who suggested this theory to me. I simply put it out there to see if anyone had heard of such a thing. If you have the 90”s ruling, I’d very much like to read that.

    Thanks for commenting.
     
    theSoz, Jul 10, 2021
    theSoz, Jul 10, 2021
    #3
    nikmirbre Thanks this.
  5. Jul 10, 2021 #4
    Ridgeline

    Ridgeline Road Train Member

    22,640
    120,716
    Dec 18, 2011
    Michigan
    0
    I don’t have a link, I have a copy of the ruling in my records from my accountant. any EA or tax lawyer can show it to you.

    sounds like you have a minimally educated person trying to tell people how to save money.
     
    Ridgeline, Jul 10, 2021
    Ridgeline, Jul 10, 2021
    #4
    theSoz Thanks this.
  7. Jul 10, 2021 #5
    theSoz

    theSoz Light Load Member

    161
    385
    Jan 24, 2020
    0
    I’m skeptical of anyone who calls themselves a “tax strategist” in the first place. Thankfully, I didn’t seek this person out but rather was put into a conversation a friend was having with this guy and was asked for my opinion. I don’t think this strategist knew anything about the trucking industry at all other than what he probably googled. He sounded like he was just searching for a new set a customers and was just throwing out ideas. These are the guys that get you audited and then disappear.
     
    theSoz, Jul 10, 2021
    theSoz, Jul 10, 2021
    #5
    Bean Jr. Thanks this.
  8. Jul 21, 2021 #6
    buckmanmike

    buckmanmike Medium Load Member

    312
    402
    Jan 20, 2010
    in the country, georgia
    0
    Seems to me that if the load paid $1 and Landstar took 35% your income would be $.65. So that 35% fee is deducted, effectively.
     
    buckmanmike, Jul 21, 2021
    buckmanmike, Jul 21, 2021
    #6
    JLMooreKCMO, Bean Jr. and Accidental Trucker Thank this.
  9. Jul 23, 2021 #7
    77fib77

    77fib77 Road Train Member

    11,387
    74,236
    Jul 7, 2010
    St Louis
    0
    So if you pay fuel taxes. You can deduct that against your federal. Since some fuel tax goes to feds. A women me that once.
     
    77fib77, Jul 23, 2021
    77fib77, Jul 23, 2021
    #7
  10. Jul 23, 2021 #8
    wis bang

    wis bang Road Train Member

    3,436
    4,074
    Jan 12, 2011
    Levittown, PA
    0
    100% of the OP income IS the 65% of the load they were paid.

    I'm sure the IRS would love to tax you on 135% of your income as many motor carriers would pay less on their 35% of the gross.

    Oh yeah don't forget my 10%, thank you very much. Never knew I was a tax strategist...
     
    wis bang, Jul 23, 2021
    wis bang, Jul 23, 2021
    #8
    Dockbumper and Bean Jr. Thank this.
  11. Jul 24, 2021 #9
    p608

    p608 Road Train Member

    2,181
    2,993
    Nov 10, 2016
    0
    In order to deduct it you would have to claim it as income.
     
    p608, Jul 24, 2021
    p608, Jul 24, 2021
    #9
    Dockbumper and mtoo Thank this.
  12. Jul 24, 2021 #10
    mtoo

    mtoo Road Train Member

    1,936
    4,514
    Jan 15, 2011
    Retired on bended knee
    0
    The OP has the good sense to question the advice he was given. Never blindly follow someones advice, do your own Due Diligence
     
    mtoo, Jul 24, 2021
    mtoo, Jul 24, 2021
    #10
    Bean Jr. and theSoz Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

    • Page 1 of 3