Taxes

Ok, $500 won't break the bank. Leases just concern me

 

To answer the original question, if you save 25% for taxes after deducting lease payments and fuel costs you should be good.

 

Good luck I hope it works out

 

you are taxed on your net profit. Net is your gross earnings minus your expenses. How much you can get taxed depends on your business tax structure. You by default will be considered a sole proprietor and taxed at a high rate. 15.3% for self employment and whatever bracket you hit for state and federal. most land in the 12% bracket. Talk to your cpa and see if it would be better to file for an S-corp status. It will save you a ton of money on taxes. Here is an example for you.

net taxable profit $60,000

Sloe Prop.

S/E tax @ 15.3% = $9180
S/F tax @ 12% after 12k slandered deduction = $5,760
Total tax = $14940

S Corp

Reasonable wage = 40,000
S/E tax @15.3% = $6120
S/F after slandered deduction = $3,360
Total Tax = $9,480

 

If you do it right, you’ll owe very little taxes. By the time you minus all the costs,everything, cell phone, gloves, meals, along with the obvious big costs, minus standard deduction $12000, you’ll be in the 10% tax bracket. Probably be able to qualify for food stamps, Lol.

 

Yep, that "slandered" deduction is the worst

 

LOL got to love that voice recognition