Owner-operators and fleets: per diem, the heavy vehicle use tax, fuel tax reporting, leased drivers, truck depreciation, multi-state filing, plus towing, courier, and moving companies.
35 guides, each written by a CPA licensed in the US and Canada.
Courier businesses have stable year-round demand. At $44,500 net profit, expect approximately $2,000/quarter.
US TaxVehicle expenses dominate courier deductions (standard mileage at 30,000-50,000 miles = $21,000-$35,000). Major deductions for courier and delivery.
US TaxCourier and delivery services are NOT SSTBs under IRC 199A. Vehicle expenses dominate the tax picture (fuel, maintenance, depreciation).
US TaxTowing businesses generate relatively steady revenue (accidents and breakdowns happen year-round) but face lumpy cash flow from equipment purchases.
US TaxSeasonal estimated tax strategies for moving companies: 1. Equal quarterly payments (safe harbor method): Pay 100% of prior.
US TaxForm 2290 applies to any highway motor vehicle with a taxable gross weight of 55,000 pounds or more. The tax period runs.
US TaxIf you own or operate a truck with a taxable gross weight of 55,000 pounds or more, the IRS wants a Form 2290 from you every year.
US TaxFreight brokers face unique tax rules around 1099-NEC reporting, the freight payment exemption, independent contractor classification.
US TaxOwner-operators pay federal excise tax on every gallon of diesel. On top of that, every state levies its own fuel tax, and the rates vary wildly.
US TaxTrucks over 14,000 lbs GVWR are exempt from the IRC 280F luxury automobile caps that limit depreciation on passenger vehicles.
US TaxIFTA applies to qualified motor vehicles (over 26,000 lbs GVW or 3+ axles) that operate in two or more IFTA member jurisdictions.
US TaxHow the IRS classifies your truck lease as a true lease or conditional sale, and why the answer controls whether you deduct payments, depreciation.
US TaxShould you lease or buy your next truck? The tax treatment is different, and the right answer depends on your cash flow, income level.
US TaxThe right entity structure for a trucking company depends on income level, fleet size, and self-employment tax exposure.
US TaxMoving companies deduct fuel, commercial auto insurance, packing supplies as COGS, and equipment under Section 179. Deductible expenses for moving.
US TaxMoving company owners can shelter income through Solo 401(k) (owner-only) or SIMPLE IRA (with employees). Retirement plan options for moving companies:.
US TaxMoving companies are not SSTBs, making the full QBI deduction available. Heavy-duty trucks qualify for full Section 179 deduction.
US TaxWhy movers are employees (under the IRS three-category test): 1.
US TaxTrucks cross state lines every day, but state income tax obligations depend on nexus, apportionment formulas, and whether PL 86-272 provides protection.
US TaxEvery deduction an owner-operator can claim on Schedule C, from fuel and maintenance to per diem and lumper fees, mapped to the correct tax form line.
US TaxThe full list of owner-operator tax deductions, how per diem works, when actual expenses beat the standard mileage rate, and what records the IRS expects.
US TaxHow taxes work for W-2 company drivers versus 1099 owner-operators, what each side can deduct, and what changes when you switch from one.
US TaxOwner-operators and fleet owners have access to powerful retirement plans that double as tax shelters. Self-employed truckers can choose from three main.
US TaxTowing is NOT a specified service trade or business (SSTB). S-Corp election makes sense at $55,000-$65,000 in net profit.
US TaxTowing is one of the least seasonal businesses (24/7 demand for roadside assistance, accidents, and impounds). Revenue is nearly flat year-round.
US TaxTow trucks qualify for full bonus depreciation ($40,000-$800,000 per truck, all over 6,000 lbs). Fuel is the largest ongoing expense (10-20% of revenue).
US TaxTowing businesses are NOT SSTBs and qualify for the full QBI deduction. The S-Corp election saves $5,000-$10,000/year at $120,000+ net profit.
US TaxTowing businesses can deduct tow trucks ($40,000-$150,000, Section 179), fuel (the largest ongoing expense), insurance (garagekeepers, on-hook).
US TaxTow truck drivers are almost always employees under IRS and DOL tests when using the company's truck, working company dispatch.
US TaxEach mechanism has different dollar limits, different income limitations, and different consequences when you eventually sell or trade the truck.
US TaxOwner-operators and self-employed truckers subject to DOT hours-of-service regulations can deduct meals at a flat per diem rate instead of tracking.
US TaxAn owner-operator's bookkeeping determines the tax bill, the audit risk, and whether they know if they're making money. Covers essential practices,.
US TaxThe entity choice changes how much self-employment tax an owner-operator pays and how much liability protection exists. Compare LLC, S-Corp, and sole.
US TaxOwner-operators are high-audit-risk taxpayers. Large deductions, cash operations, and per diem claims put truckers on the IRS radar.
US TaxSelf-employed truckers can shelter $60,000 or more per year from tax with the right retirement plan. Most owner-operators are good at making money.