There’s absolutely no shortage of advice that is internet. We looked at multiple sites with information particularly and we’re going to try to distill the key topics here.
With so much attention in recent weeks about what the tax reform law passed last year may mean for paying taxes going ahead, it’s important to remember that none of this will affect what truckers are likely to do between now and April 15 to file their 2017 taxes.
Maintain receipts:The set of exactly what you can deduct, especially if you are an unaffiliated owner/operator, is an extended one. We’ll get to that in a moment. But if something is deducted by you, you have in order to show the expenditure in an audit. You also need to maintain receipts for many years; you are able to find references to the need to maintain them five decades, or needing to maintain them for three to suit the IRS. An internet search shows several apps out there designed to track receipts and then upload it directly into this program. But there aren’t any indications of an “killer app” that the majority of truckers use.
Vehicle expenses: This you sounds obvious. An extremely detailed overview by tax professionals explains vehicles expenses because “parking fees and tolls; standard mileage rate when not exceeding actual expenses, and actual expenses like repairs and maintenance, gas, petroleum enrollment fees, mileage, depreciation and tires if you have the automobile”
What do you Deduct? It might be simpler to list everything you can’t deduct. The rule of thumb is that whether you’re able to reveal it had something to do with having your job done, it can be deducted by you. One deduction that several of those a variety of tax advisers say can usually be abandoned are expenses which have related to keeping clean in the street, and we’re not talking about the truck: hands cleaner, paper towels, a mobile vacuum, bedding along with taxi drapes for that sleeper. 1 site specifically notes Tupperware, though it’s not likely a deduction needs to become brand-specific.
Per-diem: there are plenty of questions on the market about each per-diem deductions. The per-diem speed for 20 17 is 63. You are able to deduct 80 percent of this instead of deductions such as other expenses that are related as well as food, but may do. If you choose the 80 percent is a brew of exactly what your expenses would be, if you itemize or take the standard deduction, and also the way they compare to 80 percent of those per- diem.
Duty home: This issue may be tricky one. You will need to determine before you can begin deducting for expenses and time from it, where it’s. “Generally, your tax home is your regular place of business,” the tax professionals says. “It doesn’t make any difference where you reside.” But if you don’t have that type of location of business, it might be that the tax dwelling is actually your own residence. Let us see since he was not frequently returning to any kind of home foundation, a driver used his brother’s address as his address. He paid nothing at his brother’s home, which was nice but led to this IRS disallowing roughly $20,000 of deductions.
Don’t take somebody else’s word for it: As we know “When you are part of the trucking industry, every tax return is unique. Drivers are subject to specific requirements.” Repeatedly, the need to consult with a tax professional comes up in various stories full of tax advice.