Running a business is the additional duty which goes hand in hand with owning and operating a truck, like in the case of an owner-operator for example. With these duties come specific problems which for instance appear during taxation periods. One of them includes the ability to determine and utilize the deductions you are eligible for, minimizing some of the available financial risks, increasing your revenues, or even ensuring that you do not cut down on your operations. Below follows an outline of some of the most useful tax write-offs Offered to the owner-operators.

Fuel Expenses

One of the highest costs in any trucking business is fuel; the good thing is that this is 100% deductible. Ensure you maintain proper documentation of all the fuel - whether it was through a company fuel card or cash. Utilization of Apps or software’s that follow the distance covered and fuel ratio could help in record keeping and help ensure that you are fed for this taxable season. This particular deduction can help a lot as this would mean less taxable income especially considering the changing cost of fuel.

Decrease In The Costs Of Your Truck

Your truck is a capital asset which devalues in the long run. For tax purposes, this depreciation that comprises of the reduction in value might be claimed as a tax allowance. The depreciation of your truck does not happen in one year, as this can be spread out in different years, helping decrease your taxable income in the long run. In either case, whether one goes for MACRS or Section 179 for the upfront deduction of their truck for tax purposes, it would be of utmost relevance to seek the service of a tax consultant for evaluation of which method will most benefit the taxpayer.

Repairs And Maintenance

Any truck owner will also incur repair and maintenance costs be it for a regular petrol refill or even for replacing worn out tires. The good news is, these expenses are deductible. For that matter even the repairs that are made in case of emergencies and aimed at the continued use of the truck make wonderful deductions. It is important to keep all repair bills and repair records so as to prevent any trouble with the IRS in the future.

Insurance Premiums

Liability insurance, cargo insurance or, health insurance, business protection whom opt for will incur premiums, which are tax-deductible. These expenditures are available to be claimed in tax returns because insurance is essential in order to protect a truck, its load and earnings. Likewise, don’t forget to deduct all the costs related to purchase of various types of insurance for trucking. If you’re self-employed, don’t forget to add personal (health) insurance and business-related (health) insurance as well; it’s a common area missed.

Meals and Per Diem Expenses

Long stints on the highway belong to an owner-operator who drives for many hours at a go. Meals while away from the business centre can be partially deducted. There is also allowance of meals with no evidencing by the other forms of supporting documents in respect to meals out except for claiming standard per diems. Now, you would have had 80%, which is the value of meals eaten out, with corresponding notes on places that meals were consumed and why.

Licensing and Permit Fees

There are several licenses, certificates, and permits needed in trucking. The expenses incurred or owed in order to obtain these have been allowed as a deduction, including International Registration Plan fees, Heavy Vehicle Use Tax, and other permits to cross state lines to haul loads. It is necessary to keep a record of such fees as they tend to become quite substantial by the end of the year.

Tolls and Parking Fees

Expenses related to toll road usage or parking during business travels are also treated as allowable deductions. While this should not be an area to worry, frequent trips to toll laden areas cost quite a reasonable amount in tax deduction. Make sure every paper toll, as well as each paper or electronic receipt for parking, gets collected or recorded in a digital tracker because all of these, though seem small amounts, can add up reaching towards the end of the year.

Office Expenses

If you operate a trucking business and run some operations from home, you can potentially claim a home office deduction. This category includes rent or a percentage of the mortgage, cash expenses on bills including heat and electricity, purchase of office equipment, and even business-related usage of the phone. However, since the area has to be used solely for business purposes, IRS regulations must be observed to avert problems with the tax authorities while conducting audits.

Health Expenses

Self-employed taxpayers Who buy their own health coverage are eligible to deduct such premiums from tax. Apart from that, other health costs longer than the insurance may be deductible such as a doctor, medication, or even purchasing OTC medicines as they may still be over a certain part of AGI.

Interest on Business Loans

If you have taken up a loan for that truck or some other business asset, the loan repayments do qualify for a tax relief. Whether it’s a truck loan or simply using a credit card to order anything for business, such expenses cannot be taxed. Since the nature of the expenses involves an ongoing cycle, it is worthwhile to keep assignment of them all throughout the year.

GPS and Other Technology Tools

Today’s trucking business is not who can get the cheapest company, but who can work with the most technology. If the GPS device, an electronic logging device (ELD) or software for truckers is purchased, the written off is entirely U577. All of these items are classed as business tools and thus their cost is 100% deductible. These also include subscriptions to services intended for proposing truck routes or organizing the trucking company.

Training and Certification

In certain cases, it may be necessary to undergo further training or obtain additional certification, particularly for maintaining compliance or improving your skills, for the construction or reinstatement of your prospects. If it is the question of renewing your CDL (Commercial Driver’s License) or taking a safety course or attending any other professional seminar the expenses are non taxable to the person. To remain in the industry of trucking, one would have including giving up some of the advantages enjoyed when making an advanced course, continues learning and education.

Working as an owner-operator has lots of financial obligations but with proper tax deductions – you can make your financial obligations lighter. Being organized about your books, being current on IRS guidelines as well as working with a tax accountant are key practices that will help prevent a loss of valuable tax deductions. By doing so, not only will your taxable profit decrease but you will also use this profit and repurchase the business and it will keep growing every year.

Note: For more information, visit IRS website