Hi Pelle,
I will answer your question first. the driver can only claim the fuel, and tolls, truck washes, (if he does not get reimbursed by owner) His OCC Insurance. If he is paying for it. pager, phone. plus any other item he buys for himself for the truck and does not get reimbursed for from the owner. Plus the deim pay that the driver is entitled to. the owner cannot claim the diem for the driver. it is illegal.
The owner inturn claims the repairs, tires, maintaince, and any other repair, plus the satellite air time, pager(if his) Phone and any other expense the owner is paying for. that is if he takes actual expenses.
If he uses standard mileage deduction he cannot take the above expenses at all.
I don't Know who your tax person is, but here is an excerpt from an article in Road King Maginize,
HOW CAN YOUR TELL IF YOUR TAX PREPARER KNOWS ABOUT TRUCKS, AND THE TRUCKING INDUSTRY????.
The first thing you should do is ask him a few question like, Have you ever driven a Truck or know what’s involved in the trucking industry?. Do you know what a lumper is?, How bout a Load Locks?, Can I depreciate my truck over a three- or five- year period? If he answers anything but what you know as a driver for the first 3 items. The Standard Mileage Deduction, and 5 years for depreciation of your tractor, “RUN”. ( You better know the answer to the first three. If not, you are in deep trouble!, You are probably going to be audited, owe additional tax, plus penalty and interest, and If you call him, he might!, THAT IS MIGHT return your call.
Tractors and Straight Trucks over 26,000 lbs GVW. are listed in the Class Life Table of the depreciation instructions as 00.26, and have a class life of 4 years but, depreciated over 3 years.
Trailers, trailer mounted containers, flat beds, refrigerated trailers are listed as 00.27 and are listed as 6 year life and 5 yeas depreciated.
Straight Trucks listed between 13,000 lbs & 26,000 lbs GVW, are listed as Class 00.242, with a life of 6 years and depreciated over 5 years. This includes bucket trucks, & straight trucks
Cut Away Cargo Vans & light trucks with a 10-16 ft box, who weight between 10,000 and 13,000 lbs loaded GVW are listed as 00.241, with a 4 year class and over 5 years that they can be depreciated.
Cargo Vans, Automobiles, and Pick-up Trucks, can take the Standard mileage deduction. But, If you decide to take actual expenses and not the standard mileage deduction you are only allowed to depreciate the vehicle for 5 years, with a 3 year life and listed as 00.22.
The lax of tax knowledge, not taking all the deductions you are entitled to, and money management, are the three biggest reasons that Drivers fail in the first two years of business. Winding up going bankrupt, or in other financial situations. Even though every driver knows how to be creative and wheel and deal for a load. But tax computation is something that you should leave to the professional that knows the trucking industry.
DO YOU DISAGREE?, WOULD YOU LIKE TO BET YOUR TRUCK ON IT????
By: Franklin Katz
Frank’s Tax & Business Service,
www.1040.com/Frankstax
www.Tax-directory.com/NC/Frankstax.html
704-739-4039,
Fax: 704-739-3934
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