Dispatch fee tax write off?

If it's a legitimate cost of running your business, it's a business expense.

 

Well it depends on if your leased to someone and get a 1099 and if they deduct their fees prior to issuing the 1099. It would be a good idea to ask if that is the case.

 

@mitmaks @NightWind

I always wondered this for 1099 drivers with carriers, so in math example.

Shipper/Broker pays $3,000 to carrier for services, carrier claims $3,000 profit. Carrier pays $100 to third party dispatcher for services. Carrier writes off $100 for contract labor to dispatching company. Dispatching company claims revenue, reports profits to IRS. Carrier profits $2,900 & expenses $100 from the $3,000.

so it depends on who’s paying the dispatching company? Is it the Shipper? carrier/driver? broker? because only one person can claim profit/expense or else it’ll draw a red flag with the IRS if two try to claim same deduction.

 

If I used a dispatch company, the driver does not pay. 1099 drivers are not on the hook for third party services that the company engages.

 

You probably should ask your accountant and tax attorney about this.

 

Might want to change your avatar before a mod sees it. They frown on advertising.