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True Net Income

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dancorn

Veteran Expediter
I just calculated my percentage of income for the past three years and was curious how it compares to others.
I multiplied my net income by my gross income and came up with an average of 13% (including per diem for two drivers) for the past three years.
When I take out the per diem my average net income for the past three years is 55%.
So I am truly making about 55 cents on the dollar.
How does this compare with some of you?
Thanks.
 
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FlyingVan

FlyingVan

Moderator
Staff member
Owner/Operator
In a van you are almost always better off claiming per diem and mileage. If you do mileage you can't claim fuel, maintenance, parts, etc. I've always done it this way and on paper I am not making any money at all.

Sent from my VS995 using Tapatalk
 
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D

dancorn

Veteran Expediter
I have used a CPA and a tax service, neither one agreed to me using mileage instead of itemized deductions.
Are you sure this is acceptable to the IRS?
 
brokcanadian

brokcanadian

Veteran Expediter
Owner/Operator
Ok...totally useless to you as it was in a $1600 natural gas van at $1.00 a gallon...81 cents on the dollar to me. After fuel, insurance, and repairs

The sprinter I've had since last April...worse than 55c but it was a project van, put more than the $2900 cost into repairs and safety and diesel is not $1 a gallon...US and Canada insurance...actually its so low I'm questioning my lack of a "business plan"

Canadians can only write off actual expenses, no per mile, and you have to have a complicated setup to take per diem...only applies to highway tractors in the strict sense
 
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OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
OntarioVanMan said:
Oh my nine years here I've done mileage plus Perdiem
Click to expand...
And you still get to deduct your telephone, your tolls, your motel rooms ,the ice for your cooler, your new laptop for business purposes any expenses to do with your generator , your AAA coverage your insurance coverage.
You have more than enough deductions to get down to zero gross adjusted income the problem with that though is trying to persuade the bank to get a loan when you're not making any money LOL
 
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Worn Out Manager

Worn Out Manager

Veteran Expediter
Owner/Operator
US Air Force
We are Sub-S and pay ourselves thru a payroll Service (Patriot) that takes care of deducting and submitting payroll taxes and forms for $28 a month. Then accountant gets most of it back for us.

Sent from my hand-held Etch-A- Sketch
 
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OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Worn Out Manager said:
We are Sub-S and pay ourselves thru a payroll Service (Patriot) that takes care of deducting and submitting payroll taxes and forms for $28 a month. Then accountant gets most of it back for us.

Sent from my hand-held Etch-A- Sketch
Click to expand...
does that $28 get your taxes done at end of year as well?...if not your getting ripped...
 
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