It's a Team's Life

Business Tax Deductions

Recently we read an article that listed some of the business tax deductions.  It got us thinking were we taking all of them listed.  After doing some research and talking to our tax preparer we had a few that we were missing out on and will be fixed on our 2023 tax returns.  As always check with your tax professional if you are able to deduct something.

For one example that we were not including was the cost of our satellite tv provider.  This can be taken because you can get weather updates from the provider.  So, we have added this to being a new expense that we can deduct.

Yearly the Internal Revenue Service (IRS) releases a publication that lists all of the business expenses that are allowed for a tax year.  This publication is 535.  The current one on the IRS website is for tax year 2022 and can be found here:  IRS Publication 535  Just remember this publication covers all businesses and you will have to read through every deduction to see if you are entitled to deduct it.  Again, it is best to consult your professional to make sure you can deduct it.

Here is a list (we are sure it is not complete) of what we see that as a trucking company we can take as deductions.

·         Member dues – This can be associations as long as you can show that they benefit to running your business.

·         Bank Fees - It is best to have a separate business account from any personal accounts that way fees can be separated easily.

·         Communications – This can be cell phones and internet data plans.

·         Class and Certifications – These are any class you pay for that you have to take to maintain your Commercial Drivers Licenses (CDL).

·         Supplies for Cleaning – This can include window cleaner and paper towels.

·         Computer – Such as a laptop, software to run the business, this can also include internet access also to be able to perform business functions.

·         Credit Cards – Fees and interest may be deductible on business costs.  Check with your tax professional if you can deduct these.

·         Education – If you have to take required classes to maintain your CDL.

·         Excise Taxes – Your IFTA and mileage taxes are deductible.

·         Other Fees - Some examples here are DMV licenses, custom duty bringing freight into the US.

·         Cost of Fuel – Any fuel to run your truck is deductible.

·         Insurance – Cost to insurance vehicle, workers comp, etc.

·         Other Interest – Interest on business loans can be deductible.

·         Lease – If you are leasing a truck may be able to deduct it as an expense.

·         CDL – Any cost to maintain your CDL are deductible.

·         Maintenance – All maintenance and repairs done to the truck are deductible.

·         Medical Exams – This includes your DOT physical you have to have to maintain your CDL.

·         Office Supplies – This includes any office item that you need to run your business.  Examples are pens, highlighters, paper, etc.

·         Safety Gear – Gloves, hard hat, safety glasses, safety vest, etc.

·         Music Apps – This is one we did not know about.  If you pay for satellite radio or music apps they could be deductible.  This maybe considered a safety item since you do not have to keep searching for a radio station as you travel from city to city on a long haul.

·         Supplies – This are any supplies you need to run your business in the truck.  Some examples could be maps, log books, sunglasses, etc.

·         Subscriptions – Can include ELD fees, business magazines (soft or hardcopy), load board fees, etc.

·         Tolls and Parking – Any amount of a toll not reimbursed is deductible and paid parking.

·         Tools - If a tool to make repairs on the truck has a life of 12 months or less are deductible.  Those with longer may be eligible for deduction or may be depreciated.  But “low cost” tools may be fully deductible.

·         Travel – The cost of food, lodging, laundry, showers, personal care items while on the road.  But only if you have a permanent home or apartment.

·         Uniform – As long a clothing is not appropriate for everyday use.

This is just a “short” list of expenses that are tax deductible for a business.  It is best to review your business with your tax professional to figure out if any of the above or others that are listed in publication 535 apply to you.

 

Sandy & Stephen

We’re Burning Daylight - “Wil Anderson” (The Cowboys) John Wayne