Lease Purchase Freymiller

Still going along just fine, I grossed just over 100 k in 7.5 months, don't have a solid net number yet, still waiting on taxes and financial report for that.

I now have all new tires and I had the exhaust filter cleaned since the new year and still haven't went negative for those that thought tires alone would break me. Will have my transmission converted back to a 13 speed in a month or so which adds another 100k miles to my warranty and will have the overhead ran sometime this year I imagine. Still pulling $1200 to $2200 paychecks in what's supposed to be our slow months so I'm not too worried. Oh and I'll renew my engine warranty in the next month or so giving me another 200k miles on my engine. That will take me to approx a year before the truck is paid off and I will renew it again at that time which will give me approx a year of warranty after the truck is paid off. Give or take for miles driven of course. And for those that made a big deal about those two negative paychecks I wrote about, there hasn't been another since. Lowest checks are around $500 falling around home or shop time highest is just a hair over $2200. My weekly average is steadily increasing because of no maintenance invading my take home, me and my dm learning to work together more and rising fuel costs resulting in higher fsc which out gains the rise in fuel cost by a bit. It still isn't 100 percent of the fsc by no means, but between it and the fuel discount, I am gaining.
Bash on, just remember, I'm not losing this truck, so you WILL be eating crow when it's paid off. The only caveat could be my wife's health, but baring any issues there, I will be owning this truck. Keep the greasy side down and the shiny side up and roll on.
 
I don't have my tax bill yet but total net for the seven months of the lease was a tad over $43'000 last year. Personally I have no complaints about that. That's $6142.87 a month average.
 
I don't have my tax bill yet but total net for the seven months of the lease was a tad over $43'000 last year. Personally I have no complaints about that. That's $6142.87 a month average.
Net or gross? Sounds like gross if you don't have your tax bill yet.

BTW remember you have two grosses and two nets. You have business gross and business net and you have personal gross and personal net. You have to pay taxes on both incomes.
 
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My gross was a little over $100'000.00 I have my profit and loss statement for the end of the year so I know what I made both gross and net.
 
My gross was a little over $100'000.00 I have my profit and loss statement for the end of the year so I know what I made both gross and net.
Was that 100k business gross or personal? Business is what the truck earns. Personal gross is what you pay yourself. Both have taxes deducted.
 
Was that 100k business gross or personal? Business is what the truck earns. Personal gross is what you pay yourself. Both have taxes deducted.
Not as a sole proprietor reporting income on a schedule C. You deduct business expenses from the gross, and pay tax on what's left.
 
Iron pony is correct. That's the total business gross. Like I said, I don't have the taxes yet so there will be more to come. Not holding out much hope since I'm stuck with ATBS
 
Iron pony is correct. That's the total business gross. Like I said, I don't have the taxes yet so there will be more to come. Not holding out much hope since I'm stuck with ATBS
They're as good as anyone - they won't put you in a bad place with a shady return.
 
Do they set up lease ops as sole props?
Carriers that do lease deals on trucks don't "set anybody up." Your taxes and how you structure your business isn't any of a carrier's concern.

You typically sign two contracts... one with whatever entity leases the truck, and another between you and the carrier. The carrier contract typically binds you to them for the exclusive use of the leased truck.
 
Carriers that do lease deals on trucks don't "set anybody up." Your taxes and how you structure your business isn't any of a carrier's concern.

You typically sign two contracts... one with whatever entity leases the truck, and another between you and the carrier. The carrier contract typically bonds you to them for the exclusive use of the leased truck.
I didn't know if they insisted on certain things. Let's face it, leases aren't exactly hands off.

I didn't know they separated the truck lease from the work contract.
 
I didn't know if they insisted on certain things. Let's face it, leases aren't exactly hands off.

I didn't know they separated the truck lease from the work contract.
If you can't read and understand these contracts on your own, you shouldn't be signing them. If there's s bunch of convoluted "legalese" in them, they're typically trying to hide something shady.

At least that's how I feel about it.
 
If you can't read and understand these contracts on your own, you shouldn't be signing them. If there's s bunch of convoluted "legalese" in them, they're typically trying to hide something shady.

At least that's how I feel about it.
Indeed. But I've never read one because I've never been interested.
 
They have to keep work and the lease of the truck through separate entities by law. If the company your hauling for is also the company listed as the leasor, then by law that makes you an employee, not an independent contractor.. With almost all the companies out there, this is nothing but a shell game and you are stuck with the carrier you signed on to. A few like Freymiller, Shnieder and I think QC let you move to another carrier because they are actually selling you the truck. I don't know about the others but Freymiller does require you to haul for them for a while to show you have the determination and the financial skills to pay for the truck before switching, but you can leave at some point if you prove yourself capable of paying for the truck. You can also run the truck under your own authority here if you desire to, but thanks to a few drivers cherry picking loads among other things, they switched the pay structure for the O/A drivers so the only real benefit you get doing that is your name on the title and truck. The money is about the same with more headaches. As for ATBS, they are not what they used to be. They are not great at getting your deductions right anymore increasing what you pay in. And we have at least two drivers that had their receipts they sent in last year mysteriously get lost. I have a different manager there than those two did so I'm going to give them a chance this year because they always did my accounting in the past, but if they screw it up, they will be coughing up their numbers next year for my accountant to get things right.
 
ATBS, they are not what they used to be. They are not great at getting your deductions right anymore increasing what you pay in. And we have at least two drivers that had their receipts they sent in last year mysteriously get lost. I have a different manager there than those two did so I'm going to give them a chance this year because they always did my accounting in the past, but if they screw it up, they will be coughing up their numbers next year for my accountant to get things right.
Companies change over time, a lot if it has to do with the strengths of the management team.

It goes back to the the fact that even though you had someone else prepare the return, you are ultimately responsible for it. That means you really have to check it, and make sure it's right.

Never surrender your original receipts... if they're lost, you're done.
 
Companies change over time, a lot if it has to do with the strengths of the management team.

It goes back to the the fact that even though you had someone else prepare the return, you are ultimately responsible for it. That means you really have to check it, and make sure it's right.

Never surrender your original receipts... if they're lost, you're done.
That's the reason I'll know if they screw it up, I compare their statement each month with my own and so far I have been the only one to miss something.

That's what I told them about their receipts. You can scan and email them does, there is no sense in trusting them with the originals.
 
After turning in every receipt I knew I could claim, I came out with a taxable income of $28000.00 for the 6.5 months I was leasing. I came out owing uncle Sam $2100.00. Not bad considering I had a ton of receipts just related to making us comfortable in the truck. My sheet shows $32486.00 without the extras and just the necessities deducted. That's right at a $65000.00 net for a whole year. I know this will get picked apart, but that's plenty good enough for me. Oh and the per diem is still taken out of that. If I figured actual food cost, it would be a higher net.
 
After turning in every receipt I knew I could claim, I came out with a taxable income of $28000.00 for the 6.5 months I was leasing. I came out owing uncle Sam $2100.00. Not bad considering I had a ton of receipts just related to making us comfortable in the truck. My sheet shows $32486.00 without the extras and just the necessities deducted. That's right at a $65000.00 net for a whole year. I know this will get picked apart, but that's plenty good enough for me. Oh and the per diem is still taken out of that. If I figured actual food cost, it would be a higher net.
About average for most lease drivers who actually have a clue about how to run.
 

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