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?
Deducting The Percentage The Company Keeps?
Discussion in 'Trucker Taxes and Truck Financing' started by theSoz, Jul 10, 2021.
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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.baha, p608, slow.rider and 1 other person Thank this. -
Thanks for commenting.nikmirbre Thanks this. -
sounds like you have a minimally educated person trying to tell people how to save money.theSoz Thanks this. -
Bean Jr. Thanks this.
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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.
JLMooreKCMO, Bean Jr. and Accidental Trucker Thank this. -
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.
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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...Dockbumper and Bean Jr. Thank this. -
In order to deduct it you would have to claim it as income.
Dockbumper and mtoo Thank this. -
The OP has the good sense to question the advice he was given. Never blindly follow someones advice, do your own Due Diligence
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