Show income , but show a loss ?

I'm glad I stumbled on this thread as I'm planning on getting my own this year also. I'm tired of fingerprinting so much product, and not having ANY control of my future. I've been a co. driver with the same outfit for 11 years, this past year they fired me twice, I'm down about 15-20k from what I should've made. I figure if I don't make what I feel I should I'll only have me to blame, I'll know whose ### to kick, if I can turn that fast I guess I'll be in trouble! I've got a big head start on most, I grew up in a small trucking co., I reckon I'll learn a little more owning my own. I don't know about you, but being a co. driver is starting to make me dumb, gotta get out before I suffer too much dain bramage! Thanks again for the topic, stay safe driver!

 

Empty miles are only deductible to the point of cost of drive. The fuel paid for is one. You do not get a deduction for lost mileage.

Self labor is also not deductible. You cannot get a deduction paying yourself. If you did, you would have to declare it. Therefore, your new self labor pay rate is the same as your deadhead pay when going to get a load.

NOTHING.

 

The deduction on the POV is limited to a vehicle less than 6,000 lbs, has 4 wheels and is not used in the tranportation of property for hire.

 

I don't know why people keep saying this is "fraud." Fraud is really hard to define. I remember hearing once that fraud is like porn- you don't know how to describe it, but you know it when you see it.

There is no fraud in the situation you describe. You are maximizing your deductions based on allowable amounts per the tax code to the point that it reduces your income, for IRS purposes, to 0 or below. However, you need to show the lender you have positive income, i.e. positive cash flow.

Would you mind explaining how your income is really positive when you have all these deductions that take your income to 0? Except for depreciation, most deductions are actually based on cash paid.

 

When you tell the IRS one thing, then restate your income to obtain a loan - that is the definition of loan fraud. Its a crime, and since the foreclosure crisis its one that gets looked at far more often now. You better speak to an attorney before you get yourself into trouble Kentucky.

 

situation and this is what happened:

My husband is an O/O and gets a 1099 each year. We write off a lot as well, but there was a lot written off last year that we could "back out" and amend the return. We did end up having to do just that. We amended and took of cell phones, load board, and many other miscellaneous expenses off of our previous year's return. I called the IRS first and told them the situation, and was told from the source that it was our choice. You have to show that you can make a house payment by your tax information.

We amended and had to pay an extra 4,000 as a result but needed to show more income. We worked out with the builder that he pay the exrta tax liability in lieu of landscaping the yard, which we did at a later date ourselves. We also had to get a p&l statement from our accountant to provide to the lender.

It worked out well. That was in 2008.

People may assume that amending this way is somehow fraudulent, but it is not. You can write off you cell phones, home office, etc., if you want to, but you don't have to. IRS rep gave me this bit of information. They could not give me advice, but did advise me of the legality. It is perfect fine and your perogative.

It was a pain, and cost money to do this, but it was worth it in the end.

Best of luck to you!

 

Fraud is an intentional deception made for personal gain or to damage another individual.
Deception- are acts to propagate beliefs that are not true, or not the whole truth.


“However, you need to show the lender you have positive income” Sido
No, you do not NEED to show the lender any kind of income! You are using deceptive tactics (propagate believes that are not true) for personal gain (getting a loan).

Hope this helps.


Jennywasko – keep in mind that you did not defraud the IRS you defrauded the bank!

 

For stuff like this you need to use it as initial education and then take it to a CPA. For example, it sounds like from your posts that because you paid off your truck in the same year you bought it that you are depreciating the whole amount this year. That is not how it works. What is the best way for you is a matter that you need to determine.

 

Depreciation helps to bring your profits down but any loan company knows that it doesn't affect your cash flow.