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Tax Deductions For Non-Owner Operators

Fisherman

Rookie Expediter
Driver
Offline
Hello,
I am a Canadian van expediter who drives for a fleet owner. I get paid a percentage of our gross revenue, with no taxes taken out of my pay. Last year was my first year expediting and I made about $40,000 CAD (About $30,000 USD). I went to H&R Block today to get an idea of what I will owe in taxes for last year and it came out to be about $8000 CAD (about $6000 USD). Obviously this is way more than what I want to pay considering that I do not make much money doing this to begin with.

So my question is, what can I use as deductions to lower what I owe in taxes. I am not an owner operator so I can't deduct fuel or maintenance expenses. I'm thinking I could deduct meals and hotels. I do stay in hotels quite often with this job, simply because staying in the van too much is extremely boring and not exactly a comfortable way of living. But how many hotel stays can I really deduct, considering that hotels are not really a necessary business expense for me. It's something I usually do out of desire rather than out of necessity, so it's hard for me to believe that I could deduct the thousands of dollars I spent on hotels last year. However, I guess the government doesn't know that I have a bed in the van, so they may think it is a necessary expense. I don't have any rent or a mortgage by the way. My legal residence is my mom's house, but I rarely stay there. I lived on the road year round last year, sleeping in the van and hotels.

But yeah, having to pay $8000 CAD in taxes is going to completely wipe away all the profit I made last year and then some. I will have actually lost money last year if I have to pay that much to the government. So does anybody have advice for me? I realize that this not a typical issue here as most van expediters are owner operators.
 

Treadmill

Veteran Expediter
Owner/Operator
Offline
Food and hotel expense (yes every last one you can deduct). Your charges from your tax preparer, any clothing you purchase for the job including shoes. Any electronic equipment, bedding. I can’t think of anything else at the moment but if I do I will surely add to this comment. I’m pretty sure others will chime in.
 
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Fisherman

Rookie Expediter
Driver
Offline
Food and hotel expense (yes every last one you can deduct). Your charges from your tax preparer, any clothing you purchase for the job including shoes. Any electronic equipment, bedding. I can’t think of anything else at the moment but if I do I will surely add to this comment. I’m pretty sure others will chime in.
Thanks for the info. A quick google search also just showed me that I can deduct showers at truck stops. Will have to remember to keep my receipts for those going forward.
 

Moot

Veteran Expediter
Owner/Operator
Offline
Hello,
I am a Canadian van expediter who drives for a fleet owner. I get paid a percentage of our gross revenue, with no taxes taken out of my pay. Last year was my first year expediting and I made about $40,000 CAD (About $30,000 USD). I went to H&R Block today to get an idea of what I will owe in taxes for last year and it came out to be about $8000 CAD (about $6000 USD). Obviously this is way more than what I want to pay considering that I do not make much money doing this to begin with.
All taxes are way more than most people want to pay. According to my calculations you are paying 20% of your gross income in taxes. Is that excessive in Canada? In the U.S. you should be able to get you Adjusted Gross Income down from your Gross Income using deductions like per diem etc.

So does anybody have advice for me?
Dump H&R Block and find a Canadian tax accountant that is familiar with Canadian tax codes, small businesses and hopefully some knowledge of the trucking industry.
 
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