[Fkatz]

Hi Mike again,
I understand that your still confused.

I will give you an example

Your 1099MISC that you recieve from xxx company is $50,000. this is you gross income for the business part of your SCH C

Then your all of your expenses are deducted from the that gross income
Truckers have a bonus expense, a standard diem for everyday either logged or proved with B/L copies that they were on the road for that number of days. example 300 days @ $40.00 per day is $12,000 times 65% would equal a $7,800 deduction for you.

your deduction for mileage would give you the better deduction amount on the return, but if you own a "D", Or "E" Unit you are suppose to take the actual expenses to run your truck, the mileage deduction is $ .36 cent per mile period. so if you run 45,000 miles x .36 its a $17,280 deduction.

so you made $50,000 and just thoughs 2 deductions gives you a $25,080 deduction before you use the other deductions that are available to you.
These are a lot of other deductions that can be taken, Which I cannot mention all here.
Then you have your cell phone, showers, laundry,satellite charges,occ ins. bob tail ins, QC installation and permits, escrow, sign up fees, CDL fees, dot phy, and other items
Office supplies, pens, log books, postage, trip pak, fedex
owner operators assoc fees,
Supplies, paper towel, windex, soap,cleaning supplies, load locks, cargo straps sheets pillows mattress, and other etc.

so after all the deductions you either should make a small profit or a loss the first year,

you can show a loss for the first 5 years if you have to when you start a new business.

but the mileage and the diem are basically hidden deduction for you