Skip to main content

Site Navigation

Your Account

Choose Language

This houses general site questions, issues and feature requests.

214 Questions View all

Percentage to save for repairs and taxes

I read somewhere in the Let’s Truck literature or website a percentage of revenue per settlement to save for taxes and an amount per mile to save for repairs. I remember it saying an X amount to save based on truck mileage for repairs and and an X percentage of gross revenue to save for taxes. Does anybody have those figures? I’m not finding it on the website and I thought it was in the Stop Holding the Steering Wheel workbook but it is not.

Answer this question I have this problem too

Is this a good question?

Score 0
Add a comment

1 Answer

If you have an older truck 15 cents per mile would be a good number to use. At 100,000 miles in a year that would be $15,000. A new truck may be alright with about 10 or 11 cents per mile. I think it’s probably better and a little easier to base this off of your miles rather than as a percentage of revenue. If you’re making more than expected you can always put some of the excess toward the maintenance fund. But when things get tight, you can look to your mileage to be sure you keep setting aside a reasonable amount and not allow yourself to say to yourself that I only made X amount this week so I can skip my maintenance fund contribution until I’m making better money. It’s always better to have been saving more than you ended up spending. So if you save 20 cents per mile and you only spend $15k you have $5k to roll over for next year or take out as bonus pay.

When you’re first starting out, you might want to try to save a lot more up front just to give yourself some extra cushion and take away some feeling of worry about having the money if something goes wrong. Maybe 20 to 25 cents per mile for the first three to six months and then back down to 15 cents per mile for the rest of the year.

Bonus tip (because this is related to maintenance spending): In many states purchases for truck parts and servicing the truck are exempt from paying sales tax. But don’t expect shops and parts stores to tell you this or provide you with the necessary paperwork. For example, in Pennsylvania if you’re a common carrier (The PA code specifies “common carrier.” So as I interpret it, if you’re a contract carrier you don’t get the exemption in PA.) you just need to fill out form PA Dept. of Revenue Form REV-1220 https://www.paturnpike.com/pdfs/tolls/PA... and give that to the vendor when you’re going to pay your bill. And that saves you from paying the 6% Pennsylvania state sales tax. To find other states forms search for something like “[your state] motor carrier sales tax exemption.”

Motor carriers are considered public utilities. So on the PA form you would select option 5 on the front of the form and “Interstate Commerce Commission” on the back of the form. (Even though the ICC hasn’t existed in years. Some of it’s duties are now handled by the FMCSA so that’s why I say to mark the ICC option.) You could select the option for PA Public Utility, but I’m thinking that might be if you have PA intrastate authority. To use another example on the Michigan form (MI Dept. of Treasury Form 3372) you would select option 10. (Michigan calls trucks “rolling stock.”) https://www.michigan.gov/documents/taxes...

Was this answer helpful?

Score 0
Add a comment

Add your answer

Ryan will be eternally grateful.
View Statistics:

Past 24 Hours: 1

Past 7 Days: 2

Past 30 Days: 4

All Time: 4