tax deductions

Your computer, to the extent it is used in futherance of your business/job is deductible.
The cellphone is the same.
Entertainment stuff is an "iffy" subject.
Your cb & repairs, antennas etc is part of your business.
A weather receiver would be as well.
Clothing, shoes purchased for your job are deductible.
Magazines & books related to your business would be deductible.
Cleaning products for you & the truck are deductible.
Specialty tools like fifth wheel pullers etc are deductible.

In general, most things you buy for use on the truck or in the course of performing your daily job functions are likely to be deductible.

The questionable deductions surround dual use products; as in can it also be used at home & is it purchased with that in mind? Is it more often used for personal use at home?

I'll tell ya, it's well worth the bucks to see a truck savvy tax preparer because there's so many items & deductions that generic tax preparers miss.

 

When I bought my laptop last year my tax man deducted the whole price. Including the bag, software, and service contract since I bought it at a nationwide electronics superstore.

You should REALLY spend the money on a professional tax accountant. I've gotten HUGE returns since I decided to invest the $150 he charges for preparing and filing my taxes. Last year was just shy of $3K, and I had a W2-G from my Vegas winnings. They didn't take any taxes out of my $4500 winnings and I thought for sure I was gonna have to pay in, or only get a couple hundred back.

 

Ask a tax professional... All of our expenses are not calculated/deducted for the same reasons or in the same way.

There are as many tax laws/rules/regulations as there are accountants, if you get me? YOUR accountant will give you the best advice.

 

Yes, you add the entire price on the form.
The cost of a CPA is also fully deductible.

 

The best thing you can do is to keep very good records of amounts spent and receipts. These can be itemized on a spread sheet or whatever. Then give these to an accountant who knows about trucking. CPA's and others are more business oriented and not directly familiar with the trucking industry. You should be in contact with an accountant or enrolled agent throughout the year.

I know there are many tax programs out there. As a professional tax preparer I have no problems with people using them for most of the easier returns. In your situation, I must stress the importance of developing a relationship with a local person or some expert somewhere. It is your business and needs proper guidance.

 

I was just perusing the IRS sites regarding per diem & M&IE rates.

I have confusion about the interaction between per diem rate for truckdrivers ($52 per day) & the M&IE rates given other travelers meeting the requirements of per diem.

Let me say what I think is the answer & someone can correct me as necessary.

I think the $52 per day (of which only 75% is deductible) is a standard meal deduction that is designed mostly for the transportation industry to simplify the per diem calculations.

IOW, per diem rates change drastically depending on where & when you're in a certain part of the US.

A truck driver can be in many places during the day/night & could qualify for more than one per diem rate in the course of a day, week, month while out on the road.

Instead of the payroll dept having to figure out every single possibilty & which per diem rate to use in a given time frame, the IRS provided a standard median rate for truckdrivers.

Am I correct so far?

Alongside the M&IE (meals & incidental expenses) part of per diem, there's also a deductible lodging expense ranging from $60 to almost $200 depending on date & location.

Upon being reminded of this part of the per diem rates, an evil thought crossed my mind.

Truckdrivers are generally made to sleep in their trucks most of the time.

Is it legal for the trucking company to, in effect, "sell or rent" the bunk space as a lodging to the drivers without them knowing it & pocketing that lodging expense?

If I were a company, I know I'd be looking at it or at least investigating it.

Is this done in any companies?

If it is done behind your back, how would you know?

 

The per diem rates are rated at the 52.00 for the ease in considering where the trucker may be in average. Truckers don't usually eat at the more expensive restaurants associated with the higher per diems.

As far as the lodging per diems. Since there is a legal sleeper on the truck, there is a requirement for the driver to provide motel receipts to substantiate an expense.

As far as your evil thought. The company gets a deduction on the purchase price of the truck, sleeper and all. So, there would be no additional deduction.

HOWEVER, you have done an evil thing. You mentioned another way a company can deduct something from the driver. I can see it now. We are providing you a place to sleep, so there will now be a housing deduction of 15.00 per day. If you want to run the truck it will be 20.00 per day. It is a fair deduction. Find a motel for that price.

 

That a crock of shiet. Why should I pay you to drive your truck? Does a machinist pay his boss to run the lathe? As for the sleeper, buy trucks without them and see who comes to drive OTR for you.