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Fuel mileage vs. fuel deduction.

Discussion in 'Ask An Owner Operator' started by Gutter, Oct 18, 2020.

Page 1 of 3
  1. Oct 18, 2020 #1
    Gutter

    Gutter Light Load Member

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    Oct 27, 2018
    Duluth, Mn
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    Why does it matter what fuel mileage your truck gets if fuel is 100% deductible?

    Is fuel not a deduction on taxes?

    Am I missing something here?
     
    Gutter, Oct 18, 2020
    Gutter, Oct 18, 2020
    #1
    bzinger and 650cat425 Thank this.
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  3. Oct 18, 2020 #2
    Old Man

    Old Man Road Train Member

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    Oklahoma City, OK
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    What you don’t spend you keep. if you want more deductions you can pay me a consultant fee.

    Are new O/O’s really this dumb?
     
    Old Man, Oct 18, 2020
    Old Man, Oct 18, 2020
    #2
    Wespipes, mud23609, Pamela1990 and 19 others Thank this.
  4. Oct 18, 2020 #3
    Banker

    Banker Road Train Member

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    My goal is to spend the least amount possible to run my business. That means I get to keep the rest, minus income tax. I take every single legal deduction I can but, I don’t ever buy something to get a tax deduction. Unless I need or want that something. Roughly every dollar someone spends on their business they pay 30-35 cents less in tax. (Depends on each persons tax situation to be exact) I would rather keep the 65-70 cents than spend an extra dollar.
     
    Banker, Oct 18, 2020
    Banker, Oct 18, 2020
    #3
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  5. Oct 18, 2020 #4
    Gutter

    Gutter Light Load Member

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    Oct 27, 2018
    Duluth, Mn
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    Well, I’m not an owner op. Just curious.
     
    Gutter, Oct 18, 2020
    Gutter, Oct 18, 2020
    #4
  6. Oct 18, 2020 #4
    Opus

    Opus Road Train Member

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    Its deductible from the top line, not the bottom
     
    Opus, Oct 18, 2020
    Opus, Oct 18, 2020
    #4
    Pamela1990, God prefers Diesels and Gutter Thank this.
  8. Oct 18, 2020 #5
    Cat sdp

    Cat sdp . .

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    If your getting a decent rate for the load fuel mileage isn’t as big a deal.......

    Working for $1.07 per mile not so much.....
     
    Cat sdp, Oct 18, 2020
    Cat sdp, Oct 18, 2020
    #5
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  9. Oct 18, 2020 #7
    Lazer

    Lazer Road Train Member

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    Don’t get ‘tax deduction’ confused with ‘tax credit’.
    Business deductions don’t drop your taxes ‘dollar for dollar’.
     
    Lazer, Oct 18, 2020
    Lazer, Oct 18, 2020
    #7
    God prefers Diesels, uncleal13, Gutter and 1 other person Thank this.
  10. Oct 18, 2020 #7
    blairandgretchen

    blairandgretchen Road Train Member

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    South west Missouri
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    If I make $100k in revenue, but spend $110,000 in fuel - will I get a tax refund of $10,000?
     
    blairandgretchen, Oct 18, 2020
    blairandgretchen, Oct 18, 2020
    #7
    Banker, God prefers Diesels, Midwest Trucker and 9 others Thank this.
  11. Oct 18, 2020 #8
    Gutter

    Gutter Light Load Member

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    Oct 27, 2018
    Duluth, Mn
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    The company I work for I make 23% and the owner ops make 74%. I make about 80,000 a year so I think Ive figured they are in the 200,000 to 225,000 range.

    I’ve heard them talking about claiming “other” deductions to lower their business income to be in a lower tax bracket. I’ve also heard them talk about and compare fuel mileage. I guess I was confusing the two.

    I thought if you had a truck with so-so fuel mileage it wouldn’t be a big deal because you could claim the fuel to lower your overall taxes. This is why I’m not an owner op. Seems confusing.
     
    Gutter, Oct 18, 2020
    Gutter, Oct 18, 2020
    #8
    blairandgretchen Thanks this.
  12. Oct 18, 2020 #9
    Old Man

    Old Man Road Train Member

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    Apr 3, 2009
    Oklahoma City, OK
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    My truck doesn’t get great mileage and I still pay a ton of taxes. What am I doing wrong.
     
    Old Man, Oct 18, 2020
    Old Man, Oct 18, 2020
    #9
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  13. Oct 18, 2020 #10
    Cat sdp

    Cat sdp . .

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    The talk about fuel mileage is just competitive talk.. I prefer to get to the top of the hill first. ...
     
    Cat sdp, Oct 18, 2020
    Cat sdp, Oct 18, 2020
    #10
    God prefers Diesels, JonJon78, Dino soar and 4 others Thank this.
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