Trucking Owner Operator Deductions and Expenses

For small business owners, tracking deductions and expenses – or anything to do with taxes, let’s be honest – is a hassle. For trucking owner-operators, however, it’s a hassle well worth the effort. You’re unique because you can claim expenses in ways other small businesses can’t, which can save you a lot of money come tax time.

Why Do You Need to Manage Deductions and Expenses?

Tracking your expenses and knowing what you can deduct helps you keep track of your net profits, making it easier to pay your taxes at the end of the year. Remember your Net Profit(what you’ll pay taxes on) = your Gross Pay – Allowable Expenses.

Common Deductible Expenses

What you can claim for your tax deductions will vary depending on how you set up your trucking business. Fortunately, the IRS has a Trucking Center will information specific to the needs of owner-operators and other truckers. Fortunately, most owner-operators share common expenses that can be deducted at the end of the year (be sure to check with the IRS about the specific deduction rules). Some of these expenses include:

  • Meals
  • Lodging
  • Operating Expenses (including but not limited to)
    • Fuel
    • Insurance
    • Maintenance
  • Business Expenses such as
    • Internet
    • Office Supplies
    • Subscriptions
    • Dues
    • Screenings
  • Business and Operating Fees
  • Business Loan Interest
  • Start-Up Costs
  • Lease Payments
  • Specialty Accounting Services
  • Communication Equipment
  • Truck Repairs
  • Necessary Truck Accessories

Trucking Owner Operator Deductions and Expenses

Tracking Trucking Expenses

As you can see from the list above, if you spend money related to your business as an owner-operator, you need to track it for tax purposes. From spreadsheets to complex tax software, everyone has a favorite way to track their business expenses. One of the most important things to keep track of, no matter how you record expenses, are your receipts. You’ll need them for tax time and you want to keep them in the event of an audit.

Keep track of physical receipts in a dry, secure organizer that allows you to organize them in a way that is easy for you to find.

Keep track of electronic expenses on a secure hard drive. As with physical receipts, organize them in a way that will be easy for you to find the receipts you need. DO NOT rely on keeping receipts in your email or on pulling them from a store account. If you use cloud storage (such as DropBox or Google Drive) it is a good idea to also have a physical backup for important documents such as receipts.

Get An Advantage Over Your Expenses with REY Logistics

Enjoy all of the pros and none of the cons of being an owner-operator with REY Logistics. REY gives you the ability to

  • Maximize your loads
  • Maintain your freedom
  • Drive as much as you want and need
  • Get fuel discounts
  • Provide health insurance for you and your family, and more.

Apply now!

Trucking Owner Operator Deductions and Expenses

7 Tips to Make More Money as an Owner-Operator

With gas prices rising, everyone is feeling the pinch right now, especially truckers. You’re watching expenses increase and wondering, how...

REY Logistics’ New Insurance Program for Owner-Operators

Attention, owner-ops! REY Logistics’ new insurance program offers non-trucking liability, physical damage, and occupational insurance to its owner ops for...

What is DOT Looking For? A Complete Checklist for Truckers

Many truckers cringe when they hear the acronym DOT (Department of Transportation), which is why we’ve compiled a complete checklist...