Friend is setting himself up for failure going L/P

It's like Mark Twain said,

"A man who holds a cat by the tail learns something that he cannot in any other way."

 

If you choose your truck right, and take care of it the way it needs to be taken care of then that $15k turd truck might be the same truck you are driving when you are old and grey...... you can always change the color from brown to red to black and back to brown if you want LOL

 

Well, for me the only redeeming quality of that load was that he could complete it in 2 days. $1050 / day is acceptable cash flow, (borderline, but acceptable) IMO.

 

30% in taxes?? that's a lot of money for uncle sam. does he have kids? he must be filing sinlge status. after all is said and done i pay between 11%-13% IN TAXES. AFTER ALL MY DEDUCTIONS.including per diem,xm radio,cell phone,and 4 dependants.

i don't pay quarterly, i pay yearly. the penalty fees are minimal and all i have to do is fork out 7k-8k at the end of each year. per diem knocks out about 20k right off the bat. my losses (like fuel) are my biggest deduction, that takes off about 100k off the gross...that's 120k already, then my tax guys tackles the smaller stuff like travel costs which is around 20k. all in all if i grossed 150k i'll end up with a net amount of about 30k in which i pay tax on. 30k - 12% or 13% = around 7-8k for uncle sam.

i write off all my fuel,food,tolls,3 kids,wife,scales,xm radio,cell phone....everything i possibly can. i have no book keeper (they rob you blind dude) i use a tax instructor/trainer for hr block. he has great knoledge of trucker taxes and writes off everything...long form 1099. very very simple if you ask me.

 

Taking Per Diem precludes you from taking food as a deduction. Better hope you don't get audited.

 

So that'll be what.... next year???

 

i'm not trying to sound ugly but it sounds like ur friend has the "I'M AN O/O" ego & hasn't got the got the first clue as to how to run a truck/business. chrome/bling can & will come later, those truck payments come weekly or monthly (however he has them set up), insurance, taxes, fuel, driver pay, maintenance, etc all is weekly like u know. the loaner don't care if u work or not or what u do so long as he gets his payment on time. he will obviously learn the hard way & costing him big

 

Taxes and chrome probably get a lot of lease operators and owner operators. They think that all that money that runs through the books is their's to keep. They don't consider the costs. It is unfortunate that so many get caught up in driving a flashy truck with all the chrome and chicken lights than earning a living and building a business.

 

You're right to fear this will not end well for your friend.