Money Queston

[DooWop]

Like Marmon01 I have been looking at courier work with a 3/4 or 1 ton van as I am getting close to retirement. maybe someone could help me with this question: Gross revenues to van: $58,000. Total miles,about 75000. Standard deduction @.345cpm = $25,875. How much is mine after federal income tax and social security? These numbers were given to me by a company as ball park figures, and I want to put this out to other forum members to get their feedback. (I figure another 3 1/2% for state and local taxes). Is there any other ways you could share how to minimize the tax bite? Appreciate any and all replies.

DooWop

 

[Bearcat]

If you lease on (this being your truck) as an owner operator, then you write off the fuel, maintanence and just about anything pertaining to the job. Subtract that from the gross and thats what you pay your taxes on. I would suggest you seek someone who does taxes for truckers or sole propriators to get the direct info. That way you know for sure what is and is not deductable.
Good luck
Randy

 

[Lawrence]

Welcome to the Forum!

Your comment:

"Gross revenues to van: $58,000. Total miles, about 75000"

I think you may want to investigate those numbers a little bit more. To earn $58K in a van and operate that van with a courier - your annual mileage would be more like around 150,000 miles.

Best of luck!

Lawrence
Expediters Online.Com

 

[marmon01]

The 62 cpm that I was using actually came from the banks estimate of what it is costing them to do the route. This is an "out-and-back" and I live just 6 miles form the start; thus, there is almost no dead head.

I believe the 34.5 cpm deduction is generous for a van. If anything, I tried to estimate to the high side and got 28 cpm. Also, I just read that this is going to 36.5 cpm for 2002.

 

[teacel]

As Lawrence suggested, get with someone that knows what to tell you. To run 75k, or to lease on with a courier and eat all the cost of the van you have to file a form for mileage and I don't think you can use that scale for mileage. That is set up for someone to claim short trips, and only part time trips. I may be wrong, or maybe I was told the full deduction is a better way to go. There are some tax people right here on this site: Frank's Tax & Business service will help you out. He is on the last forum on this site, (tax topics for expediters).