are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

 

Probably and at that point it becomes a business tax deduction for you, in other words floating capitol which equals loaning a big company $ without any revenue for that loan. I know it takes $ to make $, but that is why they can operate at low margins and gain larger profits. It works in their best interest. Smart business people use others hard earned cash to profit on. Still hard for a driver to swallow unless you like loaning your money for free. Still BOL. :roll:

 

Sounds to me like this is a situation that might be a good fit for some, but not others.

Even with the tax deductions and the FSC, and even if the I/C/driver is paid $.50CPM, I still fail to see any economic benefit.

As an I/C, he has to pay self employment taxes of about 15.5%, worker's comp, travel expenses, etc.

I agree with Asphaltbound, it sounds to me like an opportunity to subsidize someone else's business.

 

Thanks for the feedback, guys. I'm not really worried about the tax situation since I've been an IC before. Anyway, this is just one option I'm exploring. But it is very tempting.

 

That's crazy!

 

That is why the person is an IC, and not a company driver. I pay for the fuel in my truck, and don't get that money back - directly.

It sounds fishy, and many of the details have not been shown here.

 

Therein lies the rub, Rev!!!

You pay to put fuel in YOUR truck; this isn't even his truck that we are talking about!!

 

Rev: Nothing fishy here, just a different aspect of the business that, as Useless said, "might be a good fit for some, but not others". What other details would you like to know? I'll try to answer.

Useless: as far as putting fuel in a truck that I don't own, I kind of see your point, but it all goes out the exhaust stack regardless of who owns the truck, doesn't it?.

 

Sure it does, but if it's blowing out of someone else's exhaust stack, in someone else's truck, then personally speaking, I would rather it be someone else's fuel; hence, someone else should pay for it.

I CAN see why a company would do things this way, and looking at the big picture, i don't wish to judge their motives or merits without all of the facts. I will say that I am skeptical here.

 

I hear ya and understand where you're coming from. Skepticism can be a good thing. Please understand that I'm not trying to sell anything here, just responding to emerlin's post.

My position would be that someone else (the client) IS paying for the fuel. They're just using me as the conduit.