understanding truckers taxes

When it comes to taxes, if it can be written off as a business expense, write it off. The IRS has a whole list of things that can be written off as business expenses. The trick with that though is to get an accountant who knows what they're doing. Always save your receipts and keep records, though. Anything I can write off I do.

 

Write off everything you can. I could make 40k in profit this year and not pay taxes on it.

 

I’d advise consulting a CPA that is familiar with trucking taxes, and ignore most of the overheard conversations regarding tax matters.

 

sounds like one guy was talking about gross income and the other guy was talking net income ..... about the only thing a high gross income gets you is bragging rights .. net income you take to the bank the guy paying 80000 on a 180000 needs a new accountant .. that's over 40% in taxes on less than 250000 and the other guy was talking gross income and there's a good possibility they both exaggerated things a bit

 

You know...ive been asked a few good questions over the years by owner-operators that were actually intelligent questions

"How HARD should I work throughout the Year,I Don't want to owe $20,000 in taxes"

I Laugh when I see guys on Truckers Report Brag on How they Gross $230-$250k per year with their Truck

Hard to Hide Profit That way- Even a Motor and Trans will Still NET you over 80k after ALL expenses- Then your Tax liability can hit $25k.

I Recommend, A Sweet Spot on Gross revenues, Not too high,Not too low, I know,I know.......It "Hurts" Knowing you work your ### off all year just to Dump another 20k on 60-80k revenues.

You didn't hear this from me......But you Have to be 'smarter' than your typical person. Believe me,People do it all the time.

many,Many Restaurants, Quik stop stores and other forms of owning a business hide a lot of money- A LOT OF MONEY!!

 

There are legitimate tax strategies you can use to reduce your taxes. An LLC can, in many circumstances, help with that.

* SEP retirement plan
* Health, life, disability insurance benefits
* Per diem
* Company telephone, uniforms, PPE
* Reduced FICA taxes (by taking part of the profits as wages, part as dividends)
* Educational benefits

Etc, etc, etc. Yes, you should write off everything that is appropriate to write off, but you should also structure your business so that you can deduct as many things as possible. Per diem alone can save $8K in taxes. See your CPA for tax advise -- I do.

Finally, why would you EVER think of reducing your income to avoid taxes? If you make an extra 50K, the government takes 20K. You still keep 30K...... thank you very much, I'll take it. The more taxes you pay, the more money you keep.

 

I’m the sole member and ceo of my company, Shaw Motor Freight LLC. I sent in form 2553 to the IRS that lets me file taxes as an s Corp.

For example, this is how it would be. Numbers pulled from thin air.

$350,000 gross
-$150,000 expenses
=$200,000 profit
Pay myself a yearly w2 salary, $50,000.
Remaining $150,000 is considered dividend.

Dividends is taxed much less then my salary which I need to pay self employment tax and more.