Crst and their "new" lease purchase outline

But you guys are missing the point, anyone who does this will be one step closer to being an owner operator and have "freedom".

 

That's correct and it's about 30-33 percent since you'll have to pay the additional 15.7 percent for self employment tax. The added self employment tax is the other half of social security and medicare that your w2 employer used to pay on for you.

 

Learn the difference between effective rate and marginal rate ... The effective rate will only be about 5% under the new tax plan. Under the old it would've been about 8%.

An employee is always locked into a 7% plus effective rate.

 

Show me where he's exempt from the 15 percent self employment tax, Mr CPA.

 

$709 - 20% tax free for small business ( new tax plan) = $567 Taxable.

$567 - $352 Per Diem = $215 Taxable

$215 - $50 Misc Deductions (phone, internet, tools, supplies) = $165 Taxable

$165 - 2% = $161 Subject to Self Employment Tax

$161 * 15.7% = $26 Self Employment Tax

$26/$709 = 3.6% Effective Tax Rate For Self Employment

$165 - $13 = $152

$152 * 48 working weeks = $7296 subject to Federal Income Tax

$7296 - $12000 standard deduction = $0 Taxable Income

Effective Tax Rate for Federal Income Tax = 0%

3.6% Self Employment Tax Rate + 0% Federal Income Tax Rate = 3.6%Total Effective Tax Rate ... not 30% to 33%.

And let's be clear ... The CRST deal isn't that great. But it's not because of the taxes.

Pretty much any lease deal will be better off from a tax standpoint, than any company driver making the equivalent money.​

 

Doesn’t matter how you do the math.....

It’s slave wages.

 

Great job. It's still likely that he'll have to add some state taxes in there too but thanks to the new tax act (which I'm not up to date on yet) looks like business owners are going to get some breaks. I guess that was the point of the Act in the end (to help stimulate the economy and add jobs). The penalty for not having health insurance was also removed. That's a nice break too.

 

I think what we can all learn from this is that there will be someone leasing a truck from them that ends up just as happy as all of us at our choice of work. It’s not for everyone, but neither is Truck driving in general. If everyone could just co exist and not tell everyone else how they should live and where they should work, we’d be a lot better off

 

If you can make it averaging $1.20 a mile go for it. KLLM pays $1.02 on all loads lol. I don't understand how it works like that

 

Running for a $1mi is absolutely beyond dumb...you can't make money at $1mi...