What does it cost you per mile to to break even?
#42
01-28-2007, 04:05 PM
Originally Posted by Rev.Vassago
Originally Posted by GMAN
You should be able to pay yourself enough to pay your personal expenses including those at home, such as electric, gas, mortgage, etc., I don't include my personal expenses in my operating expenses for the business unless I plan on including that on my taxes. You need to keep business and personal expenses separate. If you pay yourself a salary of say $500 per week, you should be able to pay personal expenses out of that money, but other than the compensation you pay yourself as the driver, you should not include any personal expenses in your cost of operations calculations. So you include your salary or wages as an expense. Mixing personal and business expenses shows an inaccurate picture of the business expenses.
So which is it? :roll: Besides - my accountant does a good job of keeping track of my business expenses for me. That is what I pay him to do. I am sorry that you became so confused, Rev. I only talk out of one side of my mouth. Paying a driver is a legitimate business expense and should be paid out of operational costs. You should not pay personal expenses out of the company. Personal expenses should be paid from any salary or wages you pay yourself as the driver. I don't see why that should confuse you.
#43
01-28-2007, 04:27 PM
Originally Posted by GMAN
I am sorry that you became so confused, Rev. I only talk out of one side of my mouth. Paying a driver is a legitimate business expense and should be paid out of operational costs. You should not pay personal expenses out of the company. Personal expenses should be paid from any salary or wages you pay yourself as the driver. I don't see why that should confuse you.
So, everyone listen to GMAN - keep your personal expenses out of your operational costs, but include your salary, so you can pay your personal expenses. :roll:
#44
01-28-2007, 04:37 PM
I don't see why this should confuse you, Rev. I think you just like to argue. There is a difference between paying or receiving a salary and paying personal expenses. Any wages or salary are considered operational expenses. You live on what you pay yourself as a salary or wages. Wages are not personal expenses. Personal expenses are things like food consumed at home, mortgage on your home, car payments, etc., Those expenses are not part of your business. They are personal expenses. You can, however, deduct part of your mortgage, etc., if you use your home as an office in your business. You cannot legally deduct personal expenses on your taxes. They are also not considered as legitimate operational expenses in your business. Perhaps if you have difficulty understanding it your accountant can best explain it to you.
#45
01-28-2007, 05:14 PM
Originally Posted by GMAN
I don't see why this should confuse you, Rev. I think you just like to argue. There is a difference between paying or receiving a salary and paying personal expenses. Any wages or salary are considered operational expenses. You live on what you pay yourself as a salary or wages. Wages are not personal expenses. Personal expenses are things like food consumed at home, mortgage on your home, car payments, etc., Those expenses are not part of your business. They are personal expenses. You can, however, deduct part of your mortgage, etc., if you use your home as an office in your business. You cannot legally deduct personal expenses on your taxes. They are also not considered as legitimate operational expenses in your business. Perhaps if you have difficulty understanding it your accountant can best explain it to you.
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