O/O tax write off

I thought self employment tax is calculated on personal income only. The SS match usually made by an employer.

 

When your an OWNER OPERATOR who do you think is the employer who makes the match? *your hint is in BIG letters*

 

Depends on how you’re set up , I guess. Doesn’t apply to Me

 

Oy, that’s a lot of work for pennies.

Bottom line: much easier to create an location, and take everything above a reasonably modest wage as a profit distribution.

Look, no self employment tax.

 

I pay self employment tax on the minimum % of total income that’s allowed. The rest is paid as a stock dividend, not subject to self employment tax. The idea that I could somehow pay less self employment tax (ss tax) by showing more income,is wrong

 

Yes, regardless of where you do your reset, if its away from home it is currently 80% of $66 per day tax write of. Dont forget to print out your logs for proof you were away from home.

 

Tax write offs for oo:
1. Qualified business income, which is 20% of your business profits.
2. Depreciation, which an accountant told me to avoid if I ever plan on selling truck. But what if I keep it forever.
3. Per diem for each day away from home. Home being an actual residence.
4. Any misc business expenses.
5. Any fuel you paid for which was not covered by the fuel surcharge.
6. You can also claim your typical standard deduction of 12k.

Id check out ATBS, they give great advice, so much to learn.

 

Is this a standard deduction that you would use in place of listing all your itemized expenses? So if your expenses are over $20,000 you would not use this deduction?

Also there's this

Tax Reform Help Truckers and Carriers, But Per Diem Takes a Hit | Trucks.com

I'm single and will have over $157,500 as a sole proprietor. And my expenses will be over $20,000 so as I understand it, I won't gain anything from this.

 

This is why you need an accountant, trying to understand, keep up and take advantage of tax changes is next to impossible. The money spent on a knowledgeable Tax expert, will save much more than the cost.

 

Yes this is my first full year as an O/O. Last year was mostly w2 and I used Turbotax for both and think I got most of it right. I'm getting everything in order now and will be going to an accountant. I just want to understand as much as possible also.