Dispatch fee tax write off?

If it's a legitimate cost of running your business, it's a business expense.

 

Well it depends on if your leased to someone and get a 1099 and if they deduct their fees prior to issuing the 1099. It would be a good idea to ask if that is the case.

 

@mitmaks @NightWind

I always wondered this for 1099 drivers with carriers, so in math example.

Shipper/Broker pays $3,000 to carrier for services, carrier claims $3,000 profit. Carrier pays $100 to third party dispatcher for services. Carrier writes off $100 for contract labor to dispatching company. Dispatching company claims revenue, reports profits to IRS. Carrier profits $2,900 & expenses $100 from the $3,000.

so it depends on who’s paying the dispatching company? Is it the Shipper? carrier/driver? broker? because only one person can claim profit/expense or else it’ll draw a red flag with the IRS if two try to claim same deduction.

 

If I used a dispatch company, the driver does not pay. 1099 drivers are not on the hook for third party services that the company engages.