California Owner Operators....some new US Court Ruling....

Discussion in 'Ask An Owner Operator' started by Val_Caldera, Jul 2, 2022.

  1. Long FLD

    Long FLD Road Train Member

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    They’re getting inflation relief checks now so they’ll have an extra $1000 or so to spend.
     
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  3. craig_sez

    craig_sez Road Train Member

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    They will likely do such a thing at 1st like every new law but will eventually fade..
     
  4. scottied67

    scottied67 Road Train Member

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    There is no court higher than the United States Supreme Court. This is settled law now.
     
  5. Wasted Thyme

    Wasted Thyme Road Train Member

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    Really? Is that why freedom of religion and speach cases go before them all the time? Or Obamacare went before it multiple times?

    They can challenge different parts of it. So while a small piece might be decided. It's still able to be challenged.

    Before you say that they can't win. Part of Obamacare was upheld. Before other parts were overturned.
     
  6. DRTDEVL

    DRTDEVL Road Train Member

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    How so?

    They don't force a single move, they don't tell them when to work (or not to work), the contractors utilize their own vehicles. Its quite literally the definition of an Independent Contractor.

    I used to do it in my spare time as a tax write-off. Most people don't understand how it works, but if you are smart enough, you can make it appear on paper that you are losing a ton of money doing it, thereby lowering your tax liability. That was my specific end-game, as I was simultaneously running a small cargo van expediting company. After paying the drivers and utilizing all my write-offs, there was still too much SE tax liability, so I began driving for Uber at night to "lose" money. When you have a hybrid, it costs less than 10 cents per mile to operate yet you still get the full IRS deduction (which is currently at 62.5 cents per mile). As I knew I wouldn't get a ping (fare) from my house, I would drive 10 miles to the airport "geofence" and get a ping. That was $6.25 written off to go there, and most of those rides went about 15 miles across town for another $9.375 write-off. I would then head back to the airport empty for another $9.37 write-off and do it a second and third time. It was then about 10 miles back to my house. So for 3 fares paying me about $30, I had about $70 in mileage written off. Do this simple thing for 2 hours an evening, 5 days per week, and suddenly I have a loss (on paper) of $350. Do it half the time for an entire year, and I "lost" $9100 of income, reducing my tax bill by almost $1400. Catch a "good" fare heading to the next city once per month, and that "good" fare of $35 netted a tax write-off of about $60, giving more bang for the buck due to the nature of the system (you would need to drive back to your home town to get another fare). In my base example, that was $1400 less to the IRS and $3900 income, with expenses being $75 in extra oil changes and $1300 in fuel, making a total gain of $3,925 at the end of the year...

    And this, folks, is why they are trying to get them classified as employees. Not that they are, but the ability to reduce tax liability by using the IRS rules against the government.
     
  7. Wasted Thyme

    Wasted Thyme Road Train Member

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    Those write offs just move to the company. They don't go away. They want the additional payroll taxes.
     
  8. PoleCrusher

    PoleCrusher Road Train Member

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    There is no such thing as "Settled Law". That's a weak polemic used when one side wants the other to simply give up, because they're afraid they will eventually lose.

    The headline in the OP is misleading, poor journalism at its best. SCOTUS did not rule on AB5, it declined review. This was expected IMO, since AB5 only applies to one state. So while it may have a greater impact nationwide in the future when other sates follow suit, at this time SCOTUS probably doesn't see it as high of a priority. That may also change if a case is brought before them with more of a direct Constitutional impact.

    The other thing to remember, is the last court to rule on AB5, the 9th Circuit, is one of the most overturned courts in the history of mankind.
     
  9. Czar_Zero

    Czar_Zero Road Train Member

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    HEY YOU

    AND YOU, TOO.


    DON'T BE COMING IN HERE WITH THAT FACTUAL NONSENSE. IT GETS IN THE WAY OF THE ISSUES AND WE CAN'T HAVE THAT.
     
  10. 77fib77

    77fib77 Road Train Member

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    You can only do $ .65 a mile. Or actual costs. Not both. I know you can do depreciation with actual costs. Can you do it with mileage cost??? Too? That's what my accountant told me anyway.
     
  11. DRTDEVL

    DRTDEVL Road Train Member

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    I used the mileage rate. The actual costs were in the post to show how I wasn't actually losing money, but on paper, the mileage rate showed that I lost my hiney during those years.
     
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