Fuel mileage vs. fuel deduction.

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

  1. Gutter

    Gutter Light Load Member

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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?
     
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  3. Old Man

    Old Man Road Train Member

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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?
     
  4. 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.
     
  5. Gutter

    Gutter Light Load Member

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    Well, I’m not an owner op. Just curious.
     
  6. Opus

    Opus Road Train Member

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    Its deductible from the top line, not the bottom
     
  7. 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.....
     
  8. 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’.
     
  9. blairandgretchen

    blairandgretchen Road Train Member

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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?
     
  10. Gutter

    Gutter Light Load Member

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    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.
     
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  11. Old Man

    Old Man Road Train Member

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    My truck doesn’t get great mileage and I still pay a ton of taxes. What am I doing wrong.
     
  12. 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. ...
     
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