Important Disclaimer
Common Deductible Expenses
These are typical business expenses that carriers and owner-operators may deduct from their taxes.
Fuel Expenses
All fuel costs for business operations, including diesel and DEF.
Maintenance & Repairs
Routine maintenance, repairs, tires, oil changes, and roadside assistance.
Insurance Premiums
Liability, cargo, physical damage, and occupational accident insurance.
Lease/Rental Payments
Truck and trailer lease payments, equipment rentals.
Licensing & Permits
CDL fees, IFTA permits, IRP registration, oversize/overweight permits.
Tolls & Parking
Highway tolls, weigh station fees, truck parking, and lumper fees.
Communication
Cell phone, GPS/ELD subscriptions, satellite radio for business use.
Professional Services
Accounting, legal fees, tax preparation, and dispatch services.
Per Diem Allowances
Transportation workers can deduct a per diem allowance for meals and incidental expenses while away from home.
| Tax Year | Full Day Rate | Partial Day (75%) | Notes |
|---|---|---|---|
| 2024 | $69/day | $51.75 (75%) | For travel within continental US |
| 2023 | $69/day | $51.75 (75%) | For travel within continental US |
Key Per Diem Rules:
- Must be away from your tax home overnight to qualify
- Use partial per diem (75%) for first and last day of travel
- Keep a log of days away from home with dates and locations
- Per diem replaces actual meal receipts - you don't need to save meal receipts
- The 80% deduction rule applies to transportation workers (vs. 50% for other businesses)
- Cannot claim per diem if employer provides meals or meal allowance
Depreciation Rules
Understanding how to depreciate your truck, trailer, and equipment for tax purposes.
| Asset Type | Method | Recovery Period | Notes |
|---|---|---|---|
| Semi-Truck (New) | MACRS | 5 years | May qualify for Section 179 |
| Semi-Truck (Used) | MACRS | 5 years | May qualify for Section 179 |
| Trailer | MACRS | 5 years | May qualify for Section 179 |
| Computer/ELD | MACRS | 5 years | Often fully deductible Year 1 |
| Office Equipment | MACRS | 5-7 years | Depends on equipment type |
Record-Keeping Best Practices
Proper documentation is essential for claiming deductions and surviving an IRS audit.
Documents to Keep:
How Long to Keep Records:
Quick Reference Checklist
Use this checklist when preparing for tax season.