| Companies closed their doors overnight. |
| 05-02-2019, (Subject: Companies closed their doors overnight. ) Post: #33 | |||
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RE: Companies closed their doors overnight. (05-01-2019 )Lonestar10 Wrote: ... 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: .. 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. User's Signature: ->: What I post is just my own thoughts and Opinions! --- I AM Full Of S__T!. | |||
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