Do Owner Operators Pay More Taxes?!?!

hey what's up youtube that truck doesn't run i was just doing it for the video but uh we're talking about taxes taxes we're talking about taxes yes allen iverson we're talking about taxes and we're talking about medical insurance those are two big boogeymen that all these naysayers and debbie downers and skeptics and all these people who want to hold you down where they are these company drivers who want you to make forty thousand dollars a year they're gonna tell you you're gonna have to pay more in taxes you're gonna pay for your own medical insurance you're gonna go broke listen to what i have to say this was recorded a couple nights ago but uh yeah it's all my thoughts forgive me for rambling on but when i'm driving uh my thoughts don't come as quickly i'm trying to pay attention to what i'm doing on the road so enjoy the driving footage listen to what i have to say about taxes and medical insurance and see you guys on the next one [Music] all right friends so tonight's video we're going to talk about taxes and i think i'm gonna couple it with insurance taxes and insurance when you're an owner operator this is one of the main boogeyman that skeptics uh who are company drivers are gonna tell you that you're gonna have to pay your own taxes quarterly taxes and you're gonna be and you're gonna have to buy your own insurance now i will tell you they are correct it is you are now going to be um either if you're on your own authority you're going to be your own llc and you're going to have one way of filing your taxes and then if you're a lease on owner operator you're going to be probably a sole proprietor and you're still going to be filing your taxes in pretty much the same way the irs views those things almost exactly the same uh let me say um i probably am going to say it when i record the introduction tomorrow but i am not a tax expert i'm not trying to give you tax advice i just want to tell you guys what my experience is so that you guys can know a little a bit of what my experience is but please seek a real tax professional a real cpa and please seek out someone who understands trucking taxes because most trucking companies use a cpa that is specializes in trucking companies because there's a lot of special rules and things that apply to trucking so let me uh backtrack now okay so yes you're gonna have to pay your own taxes uh you might even have to play quarterly taxes but think about this the reason why you're going to have to pay taxes because you're going to be making more money does that appeal to you do you want to make more money i think i think you should want to make more money personally i think everyone should make more money money for all money for all like bernie sanders only you got to work for it all right money for everyone i want you guys all to make more money but the fact is is that when you make more money you're going to get taxed morning now here's the beautiful thing about owning your own truck your own trucking business you get these little things called write-offs and they take your revenue and you have all these write-offs that you deduct from your revenue to get your taxable income now once again i'm not a tax expert i'm not offering tax advice i'm only telling you guys what my experience is you deduct a whole slew of write-offs so that your taxable income ends up significantly lower than what your um operating income is so your gross revenue is going to be the amount that comes in um just from from like the rate the load itself and then you're gonna have your operating expenses your truck payment your insurance your fuel costs uh your trailer trailer uh either payment or rental as it is in my case those are going to be your operating costs after you pay all those which depending on the rates that you're working and the freight that you're hauling will be somewhere in the neighborhood of 40 between i would say between 30 and uh i guess some people pay could pay up to 60 just in operating and operating expenses so let's just say half your money half your money goes to operating expenses all right give or take uh repair bills all of that kind of stuff to keep the truck running to put fuel in it put tires on it to to pay for the truck the trailer and your insurance you're at about half of your revenue is used up all on that so of course you're not going to pay taxes on the revenue that you make you're going to pay taxes after you deduct all of those things but there's more deductions than that when you own a business the interest you pay on your truck your trailer that gets deducted i believe your trailer also i i actually don't own a trailer so i'm pretty sure though that that you can write that interest off um i don't own a home so i know that there's some something when you own a home that you can um you have a deduction that i think is significantly better than the deduction that you get when you rent but i don't know that because i don't actually own my home but uh the the other write-offs like for me the area in my home my rental that i use for my business office and for any business storage that i have that area uh when considering the area of your home so whatever percentage of your home is used for your business you can then write off that portion of your rent and even some of the utilities that you use that then you know go into operating your place of business which is your home um so you get those uh any business related travel you have to write right off the mileage and it's some a certain amount per mile like 50 something cents a mile or something like that for like business travel uh of of certain types um let's see what other write-offs do you get um you get any office supplies that you're gonna use for uh for your your truck um any cleaning supplies you're gonna use for your truck uh uniforms um safety equipment uh let's see anyway i'm not gonna go through the whole list but there's a there's a whole slew of write-offs that all these different things that you are gonna use for your truck that you then uh ride off and your tax professional will be able to help you figure out what is considered um like an appropriate write-off and what is it and uh hopefully you have someone who isn't a crook who's not trying to cheat the irs because you don't want to be in the business of cheating the irs but you also want someone who is knowledgeable and willing to give you all of their expertise and knowledge about what you can lawfully write off and give you give you all the pointers that you need in order to get your taxable income all right so we talked about gross revenue then we talked about operating in expenses and you're operating profit but then you have your taxable income at the end of all that oh some a big one that i didn't that i forgot was the depreciation on the truck and trailer you get to ride off a portion of the value of the the truck and trailer each time um you know each year uh tractors for up to three years and then trailers i forget what there are certain rules like i said i don't own my trailer so i haven't actually gone down the path of riding off a trailer yet but i can tell you that um a tractor can be written off for three years a truck you can depreciate it and so that is a big write-off and so that's something that doesn't come out of your operating expenses that is just purely a write-off because it's depreciating in value you're paying for um for the truck and so anyway well i did mention truck i guess that is the way that you ride off your truck you don't write off your truck payment you write off your depreciation on the truck and so um that is kind of uh the the benefit the tax benefits of owning your own business and it's a reason i'll be honest it's a reason to own your own business it's not a reason not to like like i actually think that it's better for you and for your taxes then if then if you were just um working a w-2 job and paying your taxes uh each check paying your payroll taxes and all that you are going to so i know some guys who pay quarterlies and you know it's because they make a lot of money and they don't have kids anymore to write off and all that so it kind of kind of pushes things pushes them into a category where yeah they gotta pay but you know what you pay you pay right now you know off of your w2 check and it's just you pay less because you make less so when is it like a good situation to make less money i i don't get it and i'll be honest you can write off more and get your taxable income down lower when you own your own business on your own truck um so that plays directly into the medical insurance thing yes you do need to find your own medical insurance yes that is true but i'll tell you that with since obamacare it actually has made getting insurance for people with moderate incomes i think easier i know some guys it's they they've had a hard go of it and so like i said i'm not a tax professional i'm not an insurance professional by any means um and i definitely only know what i know but i'll tell you that my experience is that we have had um better better coverage and and um better premiums since we've gotten our truck and we now have a pretty low uh taxable income which then allows us to through obamacare get you know the the cheaper insurance um through the state of california that allows us or it's subsidized or whatever it is i don't i don't exactly know how it works i just know that our premiums are very low and our coverage is good and better than when i was a company driver and i had um you know company insurance and i had to pay you know however much per month just to have myself on it and then if i wanted to have my family on it was gonna be like a thousand dollars or something like that i mean it was just insane how some of these uh how some of these uh insurance like like it sounds good to have insurance through your company but you usually have to pay for your family to be on it and some of these guys are paying like you know 400 500 a month to add their families on to their insurance and so you know the company um no that's right no it was like 300 400 a week for their families to be added on so it's like you know is that really like a a plus for being a company driver that you pay like a thousand dollars a month for your for your family to have insurance when you could get your taxable income down low enough to where you would probably get uh better premiums than that for your medical insurance um if you if you own a truck i mean i'm not saying for sure i don't know your exact situation i know i've got four kids and not everyone has a buttload of kids like i do um so my experience is going to be different than most everyone's but in my in my one little you know bit of experience that i have it's better to own your own company use the tax write-offs that are available to business owners and to get your taxable income down uh to where your your medical insurance is um is subsidized and i'll be honest i spend less on taxes and insurance as an owner operator than i did as a company driver i can just tell you that so that boogie man i just crossed that one off the list so uh stay tuned for the next boogie man on the next episode of why you should become an owner operator no but uh okay if you listen all the way through that all the way to the end of this this little rambling rant uh then go ahead and type the word atlas in the comment section so i know you listen all the way to the end and i don't know i'll give you a virtual high five we'll do high fives i like that um yeah man if you listened all the way to the end god bless you i love you and all those people that cut out in the middle they can just you know wonder what the heck is going on and why we all are talking about atlas all right talk to you guys later [Music] what's up youtube

Channel: Trucking California With Velox 18

Views: 451

Rating: 5 out of 5

Keywords: 18 wheeler, ats, big rig, chicken lights, class pays, custom pete, day cab, hazmat tanker, jb hunt, kenworth, largecars, lease operator, live the show, local trucking, long hood, otr, over the road, owner operator trucker, owner operator trucker pay, owner operator trucker salary, peterbilt, peterbilt 359, peterbilt 379, peterbilt 389, prime inc, regional trucking, semi truck, swift, truck driving, trucker, trucking, w900, werner, day cab owner operator, taxes, medical insurance

Id: SV2avbK_txw

Length: 15min 26sec (926 seconds)

Published: Thu Nov 19 2020