Broompilot
Veteran Expediter
I dissagree with most accountants doing books on depreciation, by this I mean when they suppliment your income into the depreciation.
I like this business because its pretty simple and straight forward but to make it even easier what really counts is what I can give to my Bride at the end of each month when all fuel, truck payment, insurance is paid etc...
But according to most tax people since the depreciation has to be calculated I am BROKE. Now if I go to the old school of this and just put in what I actually made, what the truck payment actually is than I am at least profitable and my Bride can celebrate with me on some of my efforts.
Now at the end of the year they want to give me a tax break than YEAH but from month to month I find it depressing to look at these #s. Yeah I can hear some of you if you only leased but no thank you.
So the bottom line is this without a seven page report what do you do to make it SIMPLE. I am gona post an example here but before I do I will explaine one thing I did and why I did it. I did put over 40K down so I will never be upside down in this truck I will always have more capitol in than the bank will, it will be paid for in 2 and half more years. I am not a believer in buying things just for a tax deduction I find it cheaper to pay the tax than to pay the bank.
JUST AN EXAMPLE k.i.s.s.
100K truck use the figure of $1,600 monthly note for 60 months person put down $20k
$18,000 in all expenses excluding fuel
Fuel is 20% of operating costs for easy calculation
He runs 84,000 miles for an income of 100,000 gross to the truck for a year includes fsc. Solo so he only pays himself.
Now at the end of 5 years the truck held 40% of its value (there in the for sale listed on the EO) he can either continue to drive it for another 4 years (I have seen many of older trucks with 800K or more) so he can either trade in for another new or take the monthly payment and turn it into a repair account and walk away in eight years with maybee a 10K junker. Thank you
I like this business because its pretty simple and straight forward but to make it even easier what really counts is what I can give to my Bride at the end of each month when all fuel, truck payment, insurance is paid etc...
But according to most tax people since the depreciation has to be calculated I am BROKE. Now if I go to the old school of this and just put in what I actually made, what the truck payment actually is than I am at least profitable and my Bride can celebrate with me on some of my efforts.
Now at the end of the year they want to give me a tax break than YEAH but from month to month I find it depressing to look at these #s. Yeah I can hear some of you if you only leased but no thank you.
So the bottom line is this without a seven page report what do you do to make it SIMPLE. I am gona post an example here but before I do I will explaine one thing I did and why I did it. I did put over 40K down so I will never be upside down in this truck I will always have more capitol in than the bank will, it will be paid for in 2 and half more years. I am not a believer in buying things just for a tax deduction I find it cheaper to pay the tax than to pay the bank.
JUST AN EXAMPLE k.i.s.s.
100K truck use the figure of $1,600 monthly note for 60 months person put down $20k
$18,000 in all expenses excluding fuel
Fuel is 20% of operating costs for easy calculation
He runs 84,000 miles for an income of 100,000 gross to the truck for a year includes fsc. Solo so he only pays himself.
Now at the end of 5 years the truck held 40% of its value (there in the for sale listed on the EO) he can either continue to drive it for another 4 years (I have seen many of older trucks with 800K or more) so he can either trade in for another new or take the monthly payment and turn it into a repair account and walk away in eight years with maybee a 10K junker. Thank you
