Dispatch fee tax write off?

Discussion in 'Trucker Taxes and Truck Financing' started by mitmaks, Jan 11, 2024.

  1. mitmaks

    mitmaks Road Train Member

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    Does dispatch fee get written off as my expense?
     
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  3. tscottme

    tscottme Road Train Member

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

    NightWind Road Train Member

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    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.
     
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  5. ihaveaquestion

    ihaveaquestion Light Load Member

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    @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.
     
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  6. Ridgeline

    Ridgeline Road Train Member

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    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.
     
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