I don't believe that is the case. The company leases the semi truck we own and we pay all of the fees out of the amount paid for the loads hauled including my husbands pay for driving as well as the taxes for all of it. With the truck being leased with them, it has to run under their DOT and MC numbers so all the trucks they have leased are under their insurance and they have to report the IFTA miles under those numbers as well. They charge us for all of the cost from the money we have already earned. It is is out of the agreed 85% of the load price, not their 15% fee we give per load. So, if for a 2 week period we have made a total of (we will use a settlement we have actually gotten) $11,518.83, that is the 85% total for all the loads hauled that period, then their office will deduct the amount for all insurance, trailer rent and plates from that amount, say in the amount of $2378.87, leaving us with $9139.96. All of those cost would be business cost for our end as we pay them out of money we have earned, the company we lease the truck with does not take on any of this cost from their own funds. At the end of the year when we get the 1099 we get it in the amount they of the left over funds after they take out what we owe for our own operating. So, when I file taxes and I want to claim these costs as business expenses the 1099 does not reflect the income we made to cover these expenses thusly showing us to have had a loss for the year if I claim them. If the cost for all of these charges is coming directly out of the 85% per load pay we made for the year and not from the 15% the company gets for its fees from each load then how are they the ones to be able to claim them as their business expenses as apposed to the people leasing their equipment and paying the actual cost of them? I know this is a complicated situation, most people that do not specialize in the trucking industry get cross eyed any time you talk about it in general without the idea of taxes coming into play, so I am just really trying to get it as detailed as possible so I can understand 150% what is going on. We have been leased to other companies before and they charged in the same way and never sent a 1099 that was not the gross amount for the year.
