I was talking to an O/O and he was showing a way to handle your income so you would pay less taxes. I'll try to explain it the best I can. Anyone with any input please post, I basically want to know if this is actually legal or just some bs.
He basically said that I should have 3 accts.(Truck acct., Maint. acct., and my personal acct.) The check from the company my truck is leased to should go into the Truck account. All the expenses (payroll, fuel, truck maint, bobtail ins., etc..) comes off the truck account. He basically says that the payroll(take home) is not taxable so therefore he doesn't pay taxes on his personal income, He only pays taxes on the profit left after all the expenses are deducted. Here is an example with estimated figures:
Team Driving
225,000 miles @ .96cpm= $216,000
Expenses per year
$110,000 ($55,000 each driver)
$18,564 truck payment
$43,269 fuel (leasing to fedex ground 1.25 per gallon)
$20,250 set aside for maintenace
All this equals out to $194,315 per year leaving a total profit of $21,685.
So according to him if I do it this way I would only pay taxes on the $21,685 right? Does this seem ok, or do I still gotta pay taxes on the $55,000 I would pay myself?