List of Deductible Expenses by chenmeixiu


Generally speaking all money spent to realize your income and to operate your
truck is deductible. A good accountant specializing in the trucking industry will help
guide you through the income tax process, but being aware of all your decutions is a
major key in reducing your taxes. We have compiled the following comprehensive list
of common business and industry-specific deductions.

Access Fees                                     Agent/Broker Commissions/Fees

Internet Service                                Claims and Damages
Fax Charges
Idle-Aire                                       Entertainment:
                                                Business related such as lunch or
Administration Fees                             dinner for a customer, broker
                                                employee, associate, dispatcher, or
Annual credit card fee-business credit card     business personnel.
Bank account service charges
ATM Fees                                        Equipment Operations/Maintenance
ComData                                         Fuel
Motor Carrier Fees                              Oil
Accounting Fees                                 Oil Analysis
(All business related accounting fees)          Repairs and Maintenance
Bookkeeping                                     Tires
Tax Preparation                                 Towing
Financial Planning                              Truck Wash
                                                Mail Box/ PO Box Rental
(Standard advertising as well as                Air Borne
customized signage on your equipment)           Federal Express
Professional Dues, Subscriptions                Courier Fee
and Publications (Trucking and Business         TripPak
                                                Safety Tools and Equipment
Association Dues
Books                                           Alarm System
Newspapers                                      Anit-theft devices
Magazines/Subscriptions/Journals            Batteries
Maps/Atlas/Thomas Guides                    Binoculars/Safety Glasses
Household Movers Guide                      Camera (including film and developing)
Redbook                                     Chains
                                            Emergency Lighting
Taxes                                       Fire Extinguisher
                                            First Aid Kit and supplies
Estimated Tax Payment-Federal and State     Flares and Flashlights
Fuel Tax                                    Generator
Heavy Vehicle Use (2290)                    Gloves/Hard Hat
Payroll                                     Scapper
Personal Property (Equipment)               Load Locks
                                            Protective Gear
Telephone                                   Thermals/Weather Gear

Pagers                                      Theft and Casualty Losses
Cellular Phone-Business Usage
Home Phone-Business Usage                   Tolls and Parking:
(50% of prepaid phone cards)
Travel Expenses                             EZ Pass
Hotel/Motel                                 Parking-Trailer
Showers                                     Drop Fees
Auto Rental                                 Truck Supplies-Business Office
Cab Fare
Airline Tickets (business usage)            Log Book and Cover
                                            Daily Planner
Truck Supplies-Sleeper                      Calculator
                                            Magnifying Glass
Bedding                                     Map Lamp
Refrigerator                                Clip Board
Television (Portion that is business use)   Uniforms

Truck Supplies-Business Equipment           Any clothing required by company or
                                            with company logo on it
CB                                          Wages
Cell Phone
GPS-Global Positioning System               Payroll
Laptop Computer
Pager                                       Gifts-Business Related
Satellite System
Scanner                                     (Limit $25. Per Person)
Truck Supplies                                    Insurance

Tools/Tool Box                                    Bobtail
Tarps                                             Cargo
Cables/Tie Downs                                  Disability
Ropes                                             Liability
Reflectors                                        Medical
Placards                                          Physical Damage
Duct/Electrical Tape                              Worker Compensation
Cleaning Supplies                                 Deductible
Locks Lights
Pressure Washer                                   Interest

Labor                                             Truck or Trailer
                                                  Business Credit Card
Contract Labor                                    Other (Business Related)
Lumpers                                           Medical Expenses

Legal Fees                                        DOT Physicals
                                                  Drug Testing
All Business Related Legal Fees
                                                  Truck or Trailer
Base Plates                                       Pick-Up
CDL Fee                                           Auto
Permits Registration                              Other Business Equipment

Meals                                             Office Expenses-Supplies

(Deduction is a percentage of one of the two      Accordion Folder
options listed below)                             Binders
Per diem (Based on the number of overnights       Business Cards
from Logbooks/no receipts needed)                 File Folders
Actual Costs (Must keep all receipts for meals)   Ledgers
Office Expenses-Equipment                         Pens, pencils, paper clips, staplers etc.
                                                  Computer Paper
Answering Machine
Computer-Desk Top
Computer-Cables/Connectors and Accessories
Fax Machine

                     Deductions for Company Drivers
While self-employed individuals can generally deduct any expenses incurred to earn
their income, company drivers are limited to non-reimbursed expenses required by
their employer. You are entitled to per diem for overnights and motel expenses. A good
rule to follow for deductions would be any expenses incurred that are necessary or
required in the performance of your job and/or operations of the truck but are not
reimbursed by your company, such as uniforms, gloves, logbooks, maps, cell phone,
CB, tools, windex, paper towels, showers etc. Remember, as a company driver these
deductions are available only if you itemize and are not available if you take the standard

                  Commonly Misunderstood Deductions

As an over the road trucker, when working you may deduct your actual cost for meals
with receipts or deduct the IRS per diem allowance with logbooks as substantiation.
A percentage of your total is deductible regardless of which method you choose.
Corporate shareholders are not entilted to per diem and must use actual costs.


Is the systematic write-off allowed by the IRS to deduct the cost of equipment expected
to last more than one year.

Mileage-Personal Vehicle

All business miles put on your personal vehicle are deductible. Trips to the bank, post
office, stationery store, picking up truck parts, attending truck shows. Keep track of
the total annual miles as well as business miles.

Home Office

To qualify for home office deduction you must maintain a room or area in your home
that is used regularly and exclusively for business administrative and management
purposes. To determine the business percentage of use, divide the area used for
business by the total area of the home. If the business use of the home equals 10%
the deductible business expense would be 10% or the mortgage or rental payment.
Dog and Security

Many truckers travel with their dogs. Dogs can provide personal protection, equipment
and load security and act as an around the clock theft deterrent. However, this is what
we would call a gray area that may or may not be allowed under the scrutiny of an IRS
audit. If you choose to take the deduction we recommend keeping records of food,
supplies and medical costs when the dog travels with your for business.

               What To Do When You Don't Get a Receipt
Always get receipts whenever possible. However when getting a receipt is not
possible, we recommend keeping a planner or calender type book to record all business
purchases. Record the date, to whom paid, description of the expense, amount and

                               What's Not Deductible
Do-It-Yourself Repairs and Maintenance

You cannot deduct your own time for working on your equipment. The benefit of doing
your own repairs and maintenance is the money that you save by not having to pay
someone to do it for you.


You cannot deduct for downtime. Even though you may be waiting for a load, or if
you can prove you are empty and away from home, it is not an allowable deduction.

Deadhead and Unpaid Miles

Another misconception concerns deadhead and unpaid miles. Many truckers think
that income lost as a result of deadhead and unpaid miles is a deductible item.
Unfortunately, that is not the case. Only the cost to operate the truck during that time
is deductible, such as fuel or tolls and scales.

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