Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/442406
. . . K N O W I N G E V E N A F E W A D D I T I O N A L ' R O C K S ' T O L O O K U N D E R F O R D E D U C T I O N S C A N M E A N A D D I T I O N A L H U N D R E D S I F N O T T H O U S A N D S O F D O L L A R S L E F T I N Y O U R P O C K E T. . . " " BY DENNIS BRIDGES Editor's note: This is Part 1 of a two-part series dealing with filing taxes for owner-operators. Part 2 will appear in the March-April edition of IT Magazine. T he arrival of tax season strikes fear and high blood pressure into the hearts of most working Americans, but none more so than owner-operators. One of the most frequently asked questions that I encounter in my travels is, "What one or two things can I most easily work on to stop overpaying the IRS year aer year?" Without a doubt, the two biggest causes of owner-operators paying more than necessary in income taxes are these: 1) Overlooked deductions, and, 2) Lack of adequate records We're going to offer a solution to both of these problems. Overlooked Deductions You know all the obvious deductions like fuel, repairs, insurance and permits. e expenses that don't make their way onto your return are very likely those that either: 1) You didn't realize were deductible in the first place, or, 2) You simply didn't think about these expenses during the tax preparation process. If you use one of the "franchise" tax preparation companies to prepare your returns, their process revolves around using whatever deductions that you walk in with on a summarized list, or are able to recall on the spot. eir process leaves little room for preparers to ask questions that may uncover additional deductions. So knowing even a few additional "rocks" to look under for deductions can mean additional hundreds if not thousands of dollars le in your pocket at tax time. Following, then, is a list of some of the most- frequently overlooked deductions that we see for owner-operators year aer year: Supplies — Whether purchased at home or on the road, everything from tarps and tie downs to logbooks and linens. If you don't have receipts, at least write it down in your logbook. Mileage at home — Work-related miles you drive to buy supplies, check on parts, repairs, etc. — Work-related miles driven by your spouse or dependent for supplies or any other work-related items. Road Expenses — ese are oen paid by cash. Again, if no receipt, write them in your logbook. - Hotels - Truck Supplies - Laundry - Weigh fees/scales - Parking - Prepass - Showers - Rental Car - Tolls - Airfare Business Furnishings — In your sleeper or at home: -File Cabinets -Desk -Furniture -Chairs Overlooked Deductions IRS WIN HOW TO AGAINST THE PART 1 16 IT MAGAZINE Vo l . 9 , N o . 1