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What can I deduct if I drive for an owner?

Jumbuck

Seasoned Expediter
Offline
I am starting to drive for a Van owner. Am I an employee or a contractor? Can I deduct anything as far as fuel (I Pay For Fuel) and expenses incurred by me on the road? If I can, what are the things I can deduct?
Thanks in advance for your help.
Ron
 

Moot

Veteran Expediter
Owner/Operator
Offline
For sure per diem. Keep track of the days you are on the road.
 

Jumbuck

Seasoned Expediter
Offline
For sure per diem. Keep track of the days you are on the road.
Thank you Mr. Moot. I appreciate it. I decided to come out of retirement from the Teamsters and I landed a driver job from a lady in Livonia, MI. She pays the 60/40 deal and she has her van leased on with Tri-State. I think it is a lot better gig than the 25% I was getting from last owner. What is your opinion of the 60/40 deal. Thanks.
Ron
 

EasyDoesIt

Active Expediter
Offline
Any expense you pay for can be deducted. Fuel, motel, tolls, hand tools, equipment, work shoes, communication, uniforms, laundry. Save all your receipts. If you pay with a credit card you can print out your purchases for the year and they should be itemized. A good accountant is very helpful. I had 5 different accountants and had problems with each one until I started using PBS Tax Service out of CA..
 
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Fkatz

Veteran Expediter
Charter Member
Offline
I am starting to drive for a Van owner. Am I an employee or a contractor? Can I deduct anything as far as fuel (I Pay For Fuel) and expenses incurred by me on the road? If I can, what are the things I can deduct?
Thanks in advance for your help.
Ron
Morning Jumbuck,

I am very suprised to see that the Van Owner is paying you on a 60/40 split, since she owns the vehicle, and is paying for the following: Repairs, Tires, and Insurance.

Normally this Split would be 35/65-40/60-45/55 - depends on the expense she would have to bear if any breakdowns or other item that she would have to replace.

According to what you say your paying for all other expenses, fuel, tolls, etc. which are totally deductible, Plus your Per Diem you are considered an Independent Contractor. and will recieve a 1099-Misc at the end of the year.

I will have all the information that you might be interested in at the Expo on July 27, and 28, either both 128 or 130 or you can email me for the information if you will not be able to make the Show.

I myself have been A former Company Driver and Owner/ Operator so I have the experience to complete any Tax Return for anyone

Please E-mail me direct at the address below and I will gladly attach any information that you would need.

Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping,
Payroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related
penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax related matters addressed herein.
 

xmudman

Veteran Expediter
Owner/Operator
Offline
Speaking of deductibility, what parts, if any, of attending the Expo :) would be legal to write off?

Inquiring minds want to know :)
 

EasyDoesIt

Active Expediter
Offline
I'm not a tax expert but I would think that you would be entitled to all the normal deductions of living on the road and traveling to a customer. The difference is you need material of some sort, maybe business cards or product pamphlets, that shows you were there. Any product, tool or equipment you bought and maybe the fee you paid for a service.
 

Monty

Expert Expediter
Offline
Attending seminars, trade shows, etc are always deductible. It's why corporations fly folks to paradise spots for such events. Big write off!

I took a cruise with Truckin Bozo some years ago, was a partial deduction, because he had several onboard seminars with trucking folks.
 

Fkatz

Veteran Expediter
Charter Member
Offline
The Expo would be deductible for your Per Deim (Reimburment for Food only) cause you are on the road, and part of being away from your place of abode. The EXPO is Free and so are the seminars that they give, so there is actually no additional expense besides any items that you purchase including the Hotels (If Any) The meals are included in your Per Diem

Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping,
P
ayroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related
penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax related matters addressed herein.
 

xmudman

Veteran Expediter
Owner/Operator
Offline
Is the per-diem a set daily rate, or actual expenses?

Sent from my VM670 using EO Forums
 

ChrisGa23

Expert Expediter
Offline
Are we allowed to deduct for a laptop? Saw a nice one for about a thousand. I want one that I can play games on?
 

Fkatz

Veteran Expediter
Charter Member
Offline
Hi CrisGA23.

If you are just going to use it to play games on, it is "NOT DEDUCTIBLE"

YOU MUST USE IT FOR BUSINESS PURPOSES ONLY, BUSINESS CHECKING ACCOUNT, AND LISING OF ALL YOUR EXPENSES.

i WILL/AND CANNOT TELL YOU THAT IT IS A BUSINESS EXPENSE, OTHERWISE i WOULD BE MISREPRESENTING MYSELF AS A PROFESSIONAL TAX PREPARER, AND AM SUBJECT TO IRS SANCTIONS OF UP TO A $5,000.00 FINE FOR GIVING YOU THE INCORRECT INFORMATION

This answer below is for Xmudman

The Per Deim rate is a daily rate that is allowed for every day that you are out on the road away from home, and you must either sleep in your vehicle or take a Hotel room.

The daily rate is $59.00 per day subject to 80% of the total it is also subject to the time of day that you leave and return based on 1/4 days. you also must stay out for 24 hours each day, with 10 hours in a Sleeper or hotel room.

If you work for a Company that you are home every night then the Per Deim is not Deductible

Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: http://prep.1040.com/frankstax
Franklin Katz, ATP, PA, PB,

Providing Professional Accounting, Bookkeeping, P
ayroll and Income Tax Preparation Services

Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding related

penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax
related matters addressed herein.
 
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ChrisGa23

Expert Expediter
Offline
Well I will do accounting and all the other stuff to. I just want one I can do all that with and play games on to
 

Moot

Veteran Expediter
Owner/Operator
Offline
I have deducted computer purchases, both laptop and desktop. I believe the deduction for items such as computers is limited to one purchase per 3 years. I can't believe anyone in this business would have any difficulty justifying a computer deduction. Much of my dealings with my carrier are e-mail and web based. Add to that accounting programs, tax preparation programs, E.O., mapping, weather info and porn sites and the IRS wouldn't have grounds to contest this deduction.

I also claim my phone bill as a business expense, which includes my aircard for my laptop.
 

rotcaal

Active Expediter
Offline
Any expense you pay for can be deducted. Fuel, motel, tolls, hand tools, equipment, work shoes, communication, uniforms, laundry. Save all your receipts. If you pay with a credit card you can print out your purchases for the year and they should be itemized. A good accountant is very helpful. I had 5 different accountants and had problems with each one until I started using PBS Tax Service out of CA..
yes i went through H&R block and deducted tons of stuff, fuel (the single biggest expense), hotels, tolls do not forget tolls and keep all receipts, cell phone anything you buy directly for work like boots and uniforms, tools etc...
 
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