My CPA is confused!!

Discussion in 'Ask An Owner Operator' started by missjhawk, Jan 21, 2020.

  1. missjhawk

    missjhawk Medium Load Member

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    I am a o/o but my truck broke down on me March of last year it's gonna take about 8,000 to get it up and running i had to go to work ASAP bills were stacked I been working as a company driver since end of March saving what I could to get my truck back running I'm still paying my truck note and storage fees it's been difficult caz I wanted to save the money vs borrowing the money 1st clutch went out, then oil cooler, then actuator/turbo with no time to put money back in savings turbo went out when they were clearing codes from oil cooler I should have it back up and running running next couple months

    My problem is my CPA said he's going to have to figure out how to do my taxes for last year I been paying o/o bills but iwasI a company driver too he said he is going to make sure I don't have to pay in that much
     
  2. Cabinover101

    Cabinover101 Medium Load Member

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    That shouldn't be that difficult. You get all of your O/O deductions that you had. Including your per diem Jan -March all other expenses for rest of year. And then whatever was deducted while you were a company driver.
     
    Bean Jr. Thanks this.
  3. Cabinover101

    Cabinover101 Medium Load Member

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    Just curious what truck? Year, make? Engine?
     
  4. lester

    lester Heavy Load Member

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    I hate to be the first to tell ya but if those rather minor repairs put you down maybe consider selling the truck?!? If you get the money saved up to replace the turbo what happens when the next thing goes wrong shortly down the road?
     
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  5. x1Heavy

    x1Heavy Road Train Member

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    I think the first thing you have to do is stop digging, sell the truck as is. Close up the O/O side is basically what happened in the cold light of day. You are back to being a company driver. It's no shame that the business failed due to excessive losses which the CPA may be able to credit against your taxation.

    The repairs that buried you are just symptoms towards a bigger death blow that is pending. So, quit throwing good money after bad. Close it all up, sell the truck. A few years from now when you think you have enough to take another stab at it then have at it.
     
    roshea Thanks this.
  6. Ridgeline

    Ridgeline Road Train Member

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    So what's the problem?

    The cpa should figure in the losses from the business aginst your income, you shouldn't pay anything.

    Everything from the truck is a business expense. It don't matter where the revenue comes from, that truck is an asset with a loss.

    If the cpa has issues, find someone else because this seems to be a no brainer for anyone to figure out.

    About the truck, you have to dump it, I would think that with the storage fees, etc. ... , your losses may be more than what you owe by the time you get the truck running.
     
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  7. missjhawk

    missjhawk Medium Load Member

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    First of those repairs cost me 7,000 out my savings 2nd it's gonna cost another 8,000 3rd 2major break down plus 2wks down time would break anybody pocket
     
  8. lester

    lester Heavy Load Member

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    Hey I'm not trying to tell anybody how to do anything just giving you a view from the outside looking in. But those really aren't major breakdowns, the are small things that add up to big things and there's a lot more of them to come. Trying to run a truck without good savings/credit or the ability to fix yourself isn't going to work well. Trucks always need something fixed. I'm out
     
  9. buddyd157

    buddyd157 Road Train Member

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    i have to agree, seems to me this o/o is not taking in enough money when she/he was operating as on o/o, to set aside. this sounds like an old, high mileage truck to me, and getting rid of it and staying a company driver for a while longer to maybe set aside monies for a newer, less mileage truck in the future.

    i cannot see this o/o recovering. there will be a point of no return (if it ain't already got there) where she will be under water.
     
    x1Heavy Thanks this.
  10. x1Heavy

    x1Heavy Road Train Member

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    Ive had trucks break or trailers fail and major companies like ATS at one time assigned me to KORD Chicago airfield freight to pickup a special shipment of a complete trailer airride suspension assembly for me to take to shop to have them install after one of my trailers failed. God only knows the cost of that whole thing.

    Another breakdown went through something like 4 tractors, involving possibly eliminating two people and huge amounts of money thrown around associated with the failure of my tractor at the Norfolk base one morning after the batteries drained. (Alternator was gone but I did notice the charging gauge slightly off that morning but did not think it failed to charge and was on battery all the way there from Maryland. The rest of that workweek until friday was consumed with expenses of that breakdown.

    I was issued a brand new truck bought for me from Mack. It was a good truck no complaints. No breakdowns neither. It probably was a 65000 dollar expense just by itself.

    Some breakdowns are not that bad if you get to the root cause. Dowdy had endured my old 120 overheating in three states worth of big truck dealer shops, with dyno even trying to make it overheat and fail. They finally after the second week found the root cause, a rusted sensor for coolant temp deep in the engine block. But until then and thousands of dollars no one thought to dig that deep. And I think very big shippers were threatening my Owner various problems because my tractor was sick and not fixed for two weeks, I got nothing done as far as delivery. I was paid for it. I didnt complain he took care of the problem. But he lost some money on it. It just needed someone to dig down and find the root cause and fix it like factory new. And we can go on make some of that money back.

    Sometimes it's just better to sell the thing and walk away. We owned a large resturant near Baltimore part of my life, it was a million plus dollar business annually in food, alcohol, seafood in particular among other things. When the late 70's recession bit and no one would show up to enjoy the friday night killing the income he sold it and we bought a little tavern. Run that one until the clientele died off as well. When the customer base dies off there is no point in trying to continue so he sold out everything. I understand it's back up for sale again because it has not built up any appreciable numbers of customers yet. Not in that area. No one could afford to live there. Not on the service wages they are getting today. If they were going to drink, they will get a couple of bottles or a case and go home to drink. No need to spend 5.00 a shot glass or whatever.

    If you do not have money anymore to maintain a business be it trucking or whatever, that's it. There is no need to cry or pout. Just close it up and find something else for a while.
     
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