Tax Filing Tips For Trucking Companies

Taxes aren’t any fun for anyone, but maybe especially for business owners of any size and start-up companies. Any business will want to make sure they get as much money back as possible, and that means filling out form after form and knowing what deductions to take. At Financial Carrier Services, we want to provide as much information as possible to make this tax season quick and painless. Along with these tax tips, we want to provide your trucking company and your drivers with a better way to get paid quickly and efficiently. Freight factoring has, in the past, been difficult to maneuver, full of annoying fees, and less than desirable customer service. We want to change that. With us, you can have peace of mind knowing that you will get paid and the world can keep moving.

red semi highway driving down highway

The good news is that we can help you get paid faster, the bad news is that we can’t pay your taxes for you. So, here are the top tax tips to help you save money and get a higher return. And as always, get in touch with us today to learn more about our freight factoring services.

Start-Up Costs

Is your start-up company so new that you haven’t yet made a sale? We’re fairly confident, though, that you have spent money on getting your business up and running. What many small business owners don’t know is that any costs made before the first sale are considered start-up costs. And these start-up costs can be deducted on your taxes. However, these first costs need to be deducted over the next 15 years, and you can deduct the first $5,000 in the first year after the first sale has been made. So keep putting your business together and when you make your first sale, you can start taking these deductions.

Business Expenses

Every company has business expenses, but not every business keeps meticulous notes in order to make deductions. The thing to know about business expenses is that to qualify for a deduction, it must be “ordinary” and “necessary.” These things can include:

  • Office supplies

  • Business dues

  • Business publications

  • Business cards

  • Education or training

  • Fuel

  • Oil

  • Tires

  • Truck washing

  • Truck Insurance

  • And more

To help your trucking company save money, keep track of every expense! And to make sure that everyone gets paid on time, use our freight factoring services.

Section 179

Speaking of business expenses and making deductions spread over a few years, there is an exception to that rule: section 179. Not all business expenses qualify for this deduction, so be sure to do some research before you file your taxes. With some business expenses there will be some depreciation over time, so if you want to deduct the full price in one year, this lets you do that, up to $25,000. There are several exceptions and rules for this, so again, be sure to do some research.

dark blue semi parked on highway

Standard vs. Actual for Automobile Deductions

As a trucking company, you’re obviously going to want to keep track of your mileage. There are two methods when it comes to deducting for your automobile and one of them will be more beneficial for your specific situation. The two methods are:

  • Standard Method: This method means that you’ll get back 53.5 cents for each business mile plus tolls and parking.

  • Actual Method: Take the whole year’s automobile expenses and multiply that number by your business percentage.

Keep in mind, though, that there are restrictions if you switch methods throughout the year.

There isn’t much time left before tax filing deadlines, so to make sure your company is saving as much money as possible, keep these tax tips in mind.

At Financial Carrier Services, we understand how important it is to have cash on hand so you can keep doing your job. With our freight factoring services, you can be confident that you’ll get paid quickly and always on time. What’s great about our factoring services is that there is no contract involved. This allows you to have control over your money. Simply apply online and one of our friendly customer service reps will be touch with you soon.

From freight factoring to truck and equipment financing, Financial Carrier Services can do it all. Never worry about when you’re going to receive a paycheck again. Sign up with our factoring services today.

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