Independent Truck Drivers have several opportunities to reduce their taxes if they keep good records and carefully track their expenses. The tax savings can save them approximately 30% or more off their taxes paid. Some of the most commonly missed items are:
- Failure to take advantage of accelerated depreciation on equipment, tractors or trailers purchased. Using these methods the owner/operator can write off the full value of the equipment purchased in the first year. A substantial tax break.
- Per diem. Since you keep accurate electronic logs you can use the same logs to document your time on the road and use it to claim per diem which currently amounts to $52.80 per day. This is a direct write off from your taxes.
- Interest payments on loans made to purchase equipment, tractors or trailers.
- Home office expenses
- Costs of cell phones.
- Retirement plans. You can set us a Simple IRA or a SEP account, deduct these amounts against your taxable income and build a retirement plan for your future
- Truck lease payments
- Truck insurance payments
- Maintenance and repairs on your truck
- Fuel costs.
- Other commonly missed expenses:
- Supplies
- Tolls
- Scale costs
- Truck washes
- Safety gear
- Tax preparation, bookkeeping and advice.
Our Firm works exclusively with owner operators, as their bookkeeper and tax experts. Please feel free to call for a free consultation at Maxwell CPA at 870.364.8992 or visit our website at www.transportation-cpa.com