Tax question

Discussion in 'Ask An Owner Operator' started by Menchaca0807, Aug 18, 2017.

  1. Menchaca0807

    Menchaca0807 Bobtail Member

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    ok so my question is as a sole propitership leasing onto a company what will i owe just a ballpark number in taxes monthly because I'm confused
     
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  3. Scooter Jones

    Scooter Jones Road Train Member

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    Anywhere from $0.00 to $100,000

    Does that help? ;-)
     
  4. Menchaca0807

    Menchaca0807 Bobtail Member

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    I'm thinking I'll make $14K a month so what part of that will I need to pay taxes on
     
  5. Scooter Jones

    Scooter Jones Road Train Member

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    You're thinking you will net 14k a mo. after all expenses?
     
  6. Menchaca0807

    Menchaca0807 Bobtail Member

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    No total money coming in before an expenses would be 14k so what do I have to pay taxes on I'll only be making $2,900 a month profit
     
  7. Scooter Jones

    Scooter Jones Road Train Member

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    I'd set aside 25% of $2,900 a month then. File a 941 quarterly and send it in to the IRS. If you have a State income tax, I'd set aside whatever that rate is and file the State form every quarter too.

    You might want to call a tax preparer/cpa though and get some input from them.
     
    blairandgretchen Thanks this.
  8. JL of Indiana

    JL of Indiana Light Load Member

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    Great advice. It sucks to not have that money to run on, but sucks worse to not have money to pay your taxes. If you have a less then expected year they will refund the money but it takes a couple months to get it after filing your return in the spring.

    You could not pay quarterly but you will get a penalty year end. If your company is not very big then it's not that severe.

    Like Scooter said though, consult a professional.
     
  9. blairandgretchen

    blairandgretchen Road Train Member

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    @Scooter Jones and @JL of Indiana have it.

    Miss G does the following.

    Takes 12.5% of 1099 revenue and sets aside.
    Pays quarterly estimates.
    Pays me as an employee on mileage - taxes to state, fed, FICA - the whole nine yards.
    Money into maintenance accounts, truck and trailer payment accounts, equipment upgrade account, and what if accounts.

    If tax is to be paid - you have it. If not - expand business.

    All above is very subjective to your situation.

    Consult CPA.

    You're welcome.
     
  10. blairandgretchen

    blairandgretchen Road Train Member

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    And -

    2900 from 14000 - is 20.7%.

    I'm happy with 60% in my court, but I'm always fighting 50%.

    20% would require a whole new business plan for me.
     
    redoctober83 Thanks this.
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