Hi Abe! I am wanting to maximize my tax savings and ensure I am taking full advantage of breaks for business owners and those in the transportation industry. Is there anything that I am missing?

Great question. Whether you are a Lease or Owner Operator, it’s important to keep in mind that you are a business owner! Anytime you are making a business purchase, remember the IRS definition for a qualifying business expense: “Ordinary & Necessary.” See below for some of the most common items and ensure you are recording all business expenses on your cash expense records:

  • Per Diem – One of the most important expenses to keep track of; simply report the number of days you are away from home while you are operating. Transportation can currently claim 100% of the Federal rate. That’s $69 a day to cover meals and personal expenses!*
  • Communication – You are a business owner and as such need your cell phone to operate! Be sure to include your phone bill, and consider other communication related expenses such as Dash Cams, GPS units, headsets, etc.
  • Safety & Weather Gear – While daily wear clothes do not fit the definition of “Ordinary & Necessary,” be thinking about this category. HiVis clothing, safety glasses, gloves, inclement weather gear, Personal Protective Equipment, work boots are a few common expenses in the industry.
  • Reserved Parking – This expense is sometimes overlooked. Parking expenses add up quickly. Take advantage of this expense and be sure to keep track. You might be surprised to see how much this adds up.

Remember, you have more control than you think when it comes to your tax expenses and their impact on your bottom line. The IRS requires that all business related expenses are reported when it comes time to have your return prepared. It is one of the few requirements in place that, by design, actually tips the tax scale in favor of the business owner. Be a model business owner, but more importantly, do not pay more than you have to!

For any future questions or other questions pertaining to business expenses, please contact our office at 417-380-5000 or transportation@abacuscpas.com, or visit us at www.abacustrucking.com.

*See IRS Requirements for Pier Diem Qualification

Contact you tax professionals at Abacus CPAs for assistance with these services by email at transportation@abacuscpas.com or by phone at 417.380.5000.

At Abacus CPAs, our focus is you! Contact us today if you need help or more information on this valuable topic. Abacus™ professionals provide leadership by relentlessly pursuing the best guidance possible so those we serve can make smarter decisions.  

Abacus CPAs is one of the fastest growing firms in Southwest Missouri, is wholly dedicated to helping our clients achieve their financial objectives. Our passion for our clients and employees is the driving force behind all our work and the reason we are recognized as an entrepreneurial leader in Southwest Missouri.

You’ll find that things are a distinctively different here at Abacus CPAs, and we’re proud of it.  We are here to serve you and your business. Contact us today by calling 417-380-5000, or visiting our website at www.abacustrucking.com