Trucker Tax Tips & Deductions

I tried to start filing mine today with turbo tax deluxe, is there some new stipulation with the IRS where we can only claim items that are going to last only less than a year?

Ive been through the job related expenses section several times, even started the return a second time but if its an item expected to last longer than a year it's trying to make me list it as an asset with a section 179. I am stumped and ready to throw this software in the trash, it is not very friendly nor is turbo tax help.

 

I failed as a psychic.

Please state more about the asset, like what, how much, date purchased.

 

Sorry.... i screwed around with it a little more and it goes so far into depth on items expected to last more than 1 yr it asks for percentage use for business vs pleasure..

 

If in doubt, deduct it. If the IRS come calling you can always take it off. As an S Corp I wouldn't use any kind of tax software. You need specialized guidance on taxes. Especially when you have so many nuances of deductions. It can get complicated.

 

can down payment for the truck and monthly payments be deducted ?

 

No.

The purchase of the truck is classified as an asset and subject to depreciation. The interest part of the payment is deductible.

 

IRS now has a weapon for this.

They assess an accuracy penalty of 20%.

 

Thank you all for contributing to this thread with your Q & A.
Roadmedic,
Good Luck on your appeal. It's really sad when even the auditors don't know the law.
I guess we need an emergency fund for any possible appeals, huh?

 

I am just glad that my tax man is not charging much and is in the family.


My wife told me to take it as far as I want.

 

That's why I don't use tax software. I'm not all that interested in discussing this topic because if I want to ask a Q about taxes, why would I ask a trucker?
I let my accountant do it all. That's what I pay him for. FYI he's very good at what he does and according to him, he has a special "gift" to be able to analyze my tax returns so the chances of me being audited are slim.
But I certainly don't believe the claim that there's a 20% penalty for wrongly assuming a deduct.
Oh so if you don't deduct something that is valid, does the IRS come back to you and say " mr so and so, you forgot to deduct this expense, so out of the kindness of our hearts, we will let you re-file" duh!! Sure they will. I mean they're sooooooo honest aren't they. No way would they want us to overpay!!!
Tell you what, Bro, you do it your way and I'll stick to mine.
Thanks