Welcome to Contractors Corner Consulting Group - your ultimate resource for Independent Contractors and aspiring professionals! Meet hosts Charley Mahon, Jeffrey Morton, and our dedicated contributors. 🛠️ Our Mission: Empower contractors with success-inspiring knowledge, whether you're a seasoned pro or considering contracting. @ContractorsCornerConsulting is your go-to hub for insights. 💡 What to Expect: Join us for tried-and-true strategies, insider tips, and expert advice tailored for Independent Contractors with major carriers. Save Time and Money, navigate contracting challenges with confidence. 🌐 How We Help: At Contractors Corner Consulting Group, we believe in educating and empowering you to be a more efficient Contractor. From contract negotiations to daily operations, we've got you covered. Subscribe for a stream of content elevating your contracting journey. Ready to level up your career? Hit subscribe and let's build a stronger, successful contractor community! 💪🚀
You need to talk to your accountant about depreciating your asset. Cliffs notes version is that you will depreciate the asset over several years. The ammount you can depreciate will the the ammount of money you spent on the asset. For instance, I paid a $62k baloon payment on my 2016 cascadia at the end of lease. I then depreciated that asset down to zero over the course of 3 years. Here's the other side of that. When i sell that truck, I will have to pay capital gains on that sale. Why? Because I used the tax code to depreciate that truck down to $0 in value. So if I sell it for $15k, that is a $15k gain. It's not "hard" but it gets a little hard to follow. So get with your accountant to come up with the strategy that is best for your situation. As always, we recommend Colton at Trucker CFO. He is our personal accountant for both Contractors Corner and our individual trucking businesses. www.truckercfo.com
I forgot part of the answer to your question, sorry. Anyway, the depreciation strategy I used literally paid my taxes for the three years I depreciated the truck. So....money wise, since the depreciation ment I owed no taxes, I got that $62k "back" making the transaction a wash. That's what I mean by ending up with a free truck in the end.
@ContractorsCornerConsulting how in the heck lol. How do these depreciation strategies work. If I'm reading this right. You're saying that the strategy you used? Literally paid your taxes for 3 years. Then your saying because of the depreciation, you owe no taxes and you got the 62000 back so therefore, owing nothing in the end. I think I need to understand this strategy.
Talk to colton. You have to pay the $62k to get the $62k back in the form of depreciation. It takes a couple of years. So if you are at swift, you get a ~32k instant raise the second you drop the payments. Which would normally bump you up a bracket. But since you are depreciating a high dollar asset, you get that off your tax bill. If you do it over 3 years like I did, you end up with a $20,666 tax credit each year. Keep in mind that I still had 4 lids at home and the mortgage interest deduction among others. Remember that everyone's taxes are different. None of us have the same situation.
Hey guys. Although I’ve been away from these shows going through a lot over the last 14 months, I’ve just recently been checking in on my favorite old truckers shows while I’ve been going through some downtime and recovery from surgery. It seems a lot has been confused over time, and also nothing has been asked of me. I’ve not talked to Tony or anyone with Sebrite or CCS since last summer. On another recorded show I heard someone outside of the show host confuse events with what happened to me to what happened to someone else also a few major things are not true as I have tons of paperwork to the opposite. I would enjoy catching up with Jeff and Charlie someday and update. But I have to say for these new drivers following that choose to pass on the extra coverages with Sebrite is a very bad decision. If I had not done so then I would have been completely destroyed beyond what most of you all fear for yourselves. I had chose all extra coverages and still paid less than what I had before with Swift. Now more than ever is critical with the current economy and the state of inflation. We never know what could happen tomorrow, or in my case, what could have happened two months after making the choice to go with Sebrite’s coverages. I was in a great place when we had the convention in the spring of 23 at Vegas, and I miss being there with you all and meeting everyone. For these new guys, they really need to listen and learn, as I did and was open to Jeff and Charlie’s advice even though I had 24 years in trucking, they are top notch people trying to offer choices for when things may seem impossible to others. They have endured. Everyone be safe.
We would love to catch up, man. We may be getting some things mixed up. If you want to reach out to us, we can correct the story and get it straightened out what happened to who and when. You are the reason we now have the incident coverage that pays for the hotels and transport home. As far as we know, Tony is the only one that has that coverage and it was due to that accident and the situation it put you in right off the bat.
If I had a fleet of trucks,which loads would I give to my company trucks? The best paying loads,with minimal deadhead,drop and hooks and fast shippers and receivers,give the garbage to the contractors.
Truck manufacturers should start putting placard holders,on the access doors,so all the owner operators wouldnt have to duct tape their dot numbers to the door,lmfao
The average annual salary in 2023 was $59,428. So if you have a profit of $6000 a month, that puts you at $72,000. That is above the average. So over half the country makes less than you do. Something to think about.
Yep Jeff and I raised 6 kids on one income. And it was definitely way less than that. (Especially since that was before we figured a lot of this business stuff out.)
My home and car insurance is $10,000 Vehicle and home $20,000. Taxes $10,000 Not to mention, utilities,food,gasoline,and emergency fund. Need $50,000 a year just for basic necessities
Most of the time Rosy and I work 4 days a week sometimes 5 depending on the needs of our customer. I do typically run close to my 14 hour clock most days I work due to making 3-5 Store deliveries also our pick ups also fall on my shift most of the time. So we leave the house Thursday run Thursday night deliver on Friday get back to the DC Saturday morning swap loads after we go have a meal at waffle house or huddle house lol then make deliveries on Sundays and return to th3 dc mi day morning and hit the house minday between noon and 5pm that's our typical week right now. Then we work on Contractors Corner/Road Warrior stuff Monday-Wednesday not to mention all week Jeff and I are taking calls and helping folks Charley
The best time to start a business is when you are ready to start a business. There are business people and there are employees. There is nothing wrong with either. But if you want to be in business, waiting to pull the trigger will often cost you time you could have used to build the business up and start scaling.
@@ContractorsCornerConsultingwhat happens when swift has no freight for you? Can you haul outside their network? Can't they shut you down whenever they like?
Both Jeff and Charley work an insane amount of hours between running their trucking businesses and what we do here plus all the time they spend trying to help truckers who are struggling figure out what they can do to improve.
I love helping people figure out ways to run their trucking businesses better. So I split my time between driving and the other stuff I do to help. And when I am trucking I spend a great deal of my time on the phone helping folks sort business issues out. Charley
Yes. There are many ways to obtain equipment. Leasing is absolutely an option. Both Jeff and Charley both do own trucks that are clear and free. But both also got newer trucks on a lease that they run. Doing the math and talking with dealerships at the time, the leases saved both around $30k when all is said and done at payoff time. It is important to understand both the new and used truck market. It fluctuates so when you need or want a newer truck, you have to make the best decision at the time.
Perhaps that is the bottom of the rate barrel if you have your own authority. However, being leased to a carrier has its financial perks. Among them is lower insurance rates. We don't have to have the same coverages as someone with their own authority. Remember, it's not what you make, it's what you keep. Pulling at $1.80 a mile is just as profitable as many who can't break even at $2 simply because the overhead is so much lower. Thanks for watching.
Swift is self insured,and they collect insurance premiums from these suckers. Swift isn't in the freight business Their business is selling trucks, insurance,and other BS. "Giving away printers to sell ink"
I'm doing well with what a lot of folks call cheap labor. The problem is what one thinks is cheap lavor isn't what I might think is cheap labor. It's subjective and opinion based. If some folks can't operate on what I make because they can't control their costs how is that my problem? In my operation my overhead isn't any where near what so many others are at so I don't "need" to have a minimum of 2 dollars a mile to make a profit. My home expenses are under control. Charley
We disagree. We see people grow fleets from one initial truck all the time. Then there's the REALLY crazy thing where people actually support their families on just that one truck. Weird, eh?
Let's do some math,2500 miles a week,120,000 miles a year.truck payment $550x12= $60,000,add $25,000 insurance,1500 gallons of fuel a month,x$3 a gallon=$5000x12=$60,000 total cost $125,000
I'm going to challenge your numbers. 2500 miles a week for 48 weeks is 120,000 miles annual. Please explain how 550×12=60000? 550×12=6600. My truck payment is 670 a week ×52 weeks=34840 All of my trucking business insurances and I have some not required but I wanted the 3xtra coverages is only 12216 a year. Your calculation on fuel is crazy to me also. If you are doing 2500 miles a week and burning 1500 gallons a month you are running poorly on mpg b3cause thats only like 7.2mpg my lifetime average on my current truck with 274k miles is 9.05mpg my 30 day average is 10.07, 60 day is 9.51 and my 90 day is 9.49. So let's use my lif3time average of 9.05 at 3 dollars a gallon for 120000 miles a year for 48 weeks is 39779 in fuel cost. So using some corrected numbers for th3 costs you listed above that brings the annual cost to 86835 a year which is a difference of 38164. So right there that's 38k more per year still in your pocket vs your broken numbers above. Charley
I was given less than 2 hours on a Friday to sign the contract. When I said I needed more time to read it, I was told I had already been terminated and I better hurry up and get it signed. I was very unhappy and wish I had said forget it then, but I skimmed and signed. I actually feel scammed by swift.
Yeah, we would have told them to take a hike. They can't expect GOOD contractors to sign something they haven't read. We are starting to see more of the "old swift" coming back and are pretty transparent about what we think about that. Thanks for watching man.
Sheep worry their whole lives worrying about the wolf yet it's the Shepard that places the sheep on the dinner table. I refuse to be a victim. I will always fight not to be a victim. I will also always strive to teach folks how to fight for themselves. Just like teach a man to fish etc..... charley
I don't typically work 70 hours a week. I don't spend months on the road at a time. I work 4 days a week right now on the road with my wife. We do between 4-5k miles doing what we are doing right now. If you "have" to spend months at a time and you don't want to then maybe you should change your operation to something that works better than what you currently do. Charley.
