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+--- Thread: Companies closed their doors overnight. (/showthread.php?tid=4472)
RE: Companies closed their doors overnight. - Lonestar10 - 05-01-2019
I started in September with $4,000 left to my name after the down payment on the truck and a brand new great Dane flatbed and equipment now I'm up over 23,000 in the bank even with spending money on injectors air compressor actuators other various repairs somewhere north of 20,000 not counting what I have spent on fuel and my own personal needs and my vacation to Cancun several loans for let's just call it toys. Oh and don't forget those wonderful quarterly taxes
RE: Companies closed their doors overnight. - Waterloo - 05-01-2019
My other buddy called, same deal, running down to KY from Detroit, drop and hook and back, $2 and change to the truck after fuel... Light load... Straight shot down and back. Abundance of freight and no slow down anticipated. One more doctors appointment and it will be my turn... I think I found a home.
RE: Companies closed their doors overnight. - Evotrucker - 05-01-2019
I believe those numbers arent across the board but from what i am hearing the midwest is doing a lot better then the east or west but then again im just a driver and not a broker.
One reason why i'm leaning to having my own authority is because i have a little more wiggle room and freedom. Also dispatch can't tell me they dont have any work when i can adjust my self accordingly to areas where their is freight.
Also this might just apply to me but detention helps out a tad bit but doesnt cover time lost in some cases...... when the company tells you the customer doesnt pay detention because they pay a " premium " on that particular lane that kinda bums me out.
Parking and maintaining a TRL is a whole other thing that i'm concerned about also, not sure if a lease would cover the maintenance of the TRL.
RE: Companies closed their doors overnight. - Lonestar10 - 05-01-2019
Just found out from my dad one of the 2 KWs that were bought last month is a Rental
700/Week 10c Per Mile so about 1000 a week through Rheeme up by Minneapolis.
All Maint Covered as long as its brought there so he has no OOPocket for Oil/Tires/Repairs as its a rental.
basically 4k/Month + Fuel and Def are his expenses im not sure if insurance is still through us or part of the Rental which we pay miles driven insurance.
so in one way it sounds alright since a rental is 100% deductable. not so much as you spend 52k a year roughly and have 0 Equity.
as far as monthly expenses if i go off mine roughly 20k Gross income per month so 20% for a rental isn't horrible unlike if you were running 1.00-1.25per mile leased on with something like Crete or Swift and such then it would hurt alot.
RE: Companies closed their doors overnight. - Waterloo - 05-02-2019
Evo, give it a shot. I've been down that road, just no longer my cup of tea. Many reasons, primarily the costs of insurance and maintaining a trailer. I start adding it up, and I figure I am still better off with a carrier.
One thing I learned, do not sit, get top dollar to those rough areas so that you can dead head out quickly, back to the good rates. Right now, If I was to turn on my authority, I would hook up with these Amazon loads. If these rates hold, and I see no reason why they would not, this could be pretty lucrative. I'm kind of kicking the idea around myself.
RE: Companies closed their doors overnight. - Rawze - 05-02-2019
(05-01-2019 )Lonestar10 Wrote: ...
700/Week 10c Per Mile so about 1000 a week through Rheeme up by Minneapolis.
..
700/week for a lease (or rental) is reasonable expense,.. but something wrong with that math you have there.
700/week comes out to roughly 0.30c/mile over a years time for a solo O/O. { (700*52)/120,000Paid.miles }<- this is more realistic and includes what an O/O will actually do vs perhaps some obscure # of miles per week formula that does not account for anything. There are some ppl that are able to to make 130,000+miles/year but it is rare, and it is not consistent at all. They are absolutely killing themselves and their equipment to get it. - It is not a good business model at all long term, and they always earn less money over a 3-5 year span of running this hard and fast because all the speeding and abuse to the equipment just creeps up on them. It eventually always kicks their arsse in fuel mileage losses, major repairs, down time, stress, unplanned problems, and everything else.
If a solo driver O/O truck can't justify all their expenses and model their business (+ decent take-home pay) around the typical 118,000-120,00 miles (only paid mileage counts, not odo readings) a year that most trucks will actually get paid for, after factoring in all down time, sitting, home time, etc... then you are loosing this game big time. Take how many miles you actually got paid for last year in total,.. not the truck odo reading and calc on that instead of "what you can do in a good week" to get something realistic when factoring stuff in trucking.
(05-01-2019 )Lonestar10 Wrote: ..
so in one way it sounds alright since a rental is 100% deductable
...
BTW: Some would interpret your post to imply that leases and rentals are treated differently tax-wise. Just correcting this, as it would not be true at all.
In trucking, a rental and a lease are 100% same thing, because unlike a bank load, the leasing company never transfers the title to the O/O until after the end of lease. . - 100% can always be deducted of its lease or rental equally. Your accountant needs to be fired if he says otherwise.
ONLY THE TITLE HOLDER can deduct appreciation of a vehicle legally, so this is where that break-over point is between a lease and an actual 'purchase' in trucking is.
When you lease, rent or otherwise and the title is not re-printed into your own name, you cannot claim depreciation on it. it is not until that title is in your name, therefore all other expenses are deductible.
When you purchase one and it IS re-titled into your name, like when you buy from a truck dealer and use the bank as a lien holder (title in your name with the bank stated as lien holder),.. then you (not the bank) can now legally claim depreciation in it. - I.E.> only the title holder, even if others claim some stake in it.
Here is why IRS don't allow : If the person leasing the truck could legally deduct appreciation on it while their name is not on the title, then it can be used to circumvent taxes,.. here is why ...
Company A has the truck title, leases it to company B + claim depreciation ...
Company B leases it for 1$ to company C + claim depreciation so they get $1,00's in tax breaks ...
Company C leases it for 1$ to company D+ claim depreciation so they get $1,00's in tax breaks ...
Company D leases it for 1$ to company E + claim depreciation so they get $1,00's in tax breaks ...
Company E leases it for 1$ to company F + claim depreciation so they get $1,00's in tax breaks ...
Company F leases it for 1$ to company G + claim depreciation so they get $1,00's in tax breaks ...
Company G leases it for 1$ to company H + claim depreciation so they get $1,00's in tax breaks ...
Company H leases it for 1$ to company I + claim depreciation so they get $1,00's in tax breaks ...
{and it goes on forever}.
If this were the case, then 10,000 truckers can just get together double,tripple, quadrouple,... etc. the worth of a single vehicle in tax breaks, all lease their vehicles to each other in an endless cross-loop (using many vehicles) until no one owed any taxes ever again.
--> The IRS does not allow but ONLY ONE -- THE NAME ON THE TITLE (TITLE HOLDER) THEMSELVES to claim depreciation. This is even true if there is a lean on the title. not even the lien holder can claim depreciation. - In the case of a lease-purchase,... at no point is the title transferred into the O/O's name. -- therefore legally,.. it is still considered a 'rental' in the eyes of the IRS and the law. - 100% of all associated expenses is therefore claimable.
-- I see many many people make this mistake. I see mane many accountants who are stupid make this same mistake too.
RE: Companies closed their doors overnight. - Lonestar10 - 05-02-2019
sorry I mean it is 700 per week plus $0.10 per mile figuring 3000 miles a week would be $1,000 total and thank you for the correction on the rental lease information
RE: Companies closed their doors overnight. - kryten - 05-02-2019
(04-29-2019 )Nilao Wrote: You have to be able to put $ away in the booms so you can survive the lulls.
Oh Lord, please let there be another boom and I promise not to piss it all away like last time.
RE: Companies closed their doors overnight. - Chamberpains - 05-02-2019
(05-02-2019 )kryten Wrote: Oh Lord, please let there be another boom and I promise not to piss it all away like last time.
Hahaha. Been there, done that.