New O/O starting up couple questions about taxes etc.

Discussion in 'Trucker Taxes and Truck Financing' started by Wumbo Jumbo, Mar 27, 2021.

  1. Wumbo Jumbo

    Wumbo Jumbo Bobtail Member

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    Jan 15, 2016
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    So here’s the deal I am planning on purchasing my first sleeper semi truck to be used OTR hauling a 53 reefer. I reside in Illinois and will be leasing the truck on with a small family owned carrier here in Illinois that I’ve worked with for a few years so it will be registered here. Are there any tax exemptions I should be aware of when purchasing the truck wether I choose to finance or buy with cash and does purchasing out of state make a difference? Trying to avoid being screwed over and in the ditch before I even start. Does anyone also know any good trucking business tax specialists that can help with a 401k to robs (business startup account) to avoid paying Illinois tax on an early withdrawal of my 401k money if I choose to use it to buy the truck with all cash to avoid monthly payments? Any help/advice is greatly appreciated. Feel free to message me for more personal numbers/info. Thank you
     
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  3. roundhouse

    roundhouse Medium Load Member

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    Jul 11, 2018
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    Might consider keeping some money back for a rainy day fund and financing some of the truck .

    also need to find an accountant or cpa who specializes in owner operators. And small Fleet operators .
     
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  4. Vampire

    Vampire Light Load Member

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    May 14, 2011
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    Some things you should look into deducting:

    • Per Diem meal- $63 per day
    • Business cell phone
    • Licensing fees
    • Dues -(note OOIDA dues are not tax deductible. Join anyway, it is worth it.)
    • Medical exams
    • Maintenance and repair (don't deduct lost income due to downtime, deadhead or miles that weren't paid)
    • Computer, printer e-log, GPS and pay for apps related to trucking. No...they will not give you a deduction for truck parking simulator :p
    • Fuel & Travel expenses related to the business
    • Child Tax credits, dependent care, head of household
    • Specialized clothing (safety gear, gloves, goggles, helmets, etc....note, nothing that is everyday items like slacks& jeans.)
     
  5. Wespipes

    Wespipes Heavy Load Member

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    Jul 14, 2019
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    I deduct ooida dues. Never had a problem. I deduct LITERALLY any and EVERYTHING. That has to do with the truck
     
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  6. Ridgeline

    Ridgeline Road Train Member

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    Dec 18, 2011
    Michigan
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    It is.

    any league or trade organization membership is 100% tax deductible.
     
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  7. Vampire

    Vampire Light Load Member

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    May 14, 2011
    Transylvania
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    Thanks for correcting my mistake guys. I'll be claiming them next year.
     
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