24 Oct 5 Reasons Truckers Should Hire Professionals to Solve Their Tax Problems
The trucking industry is unique, and so are the taxes on it. A true professional who deals with taxes for truckers knows how to help them with all their tax-related problems.
Besides that, there are several other reasons why you as a trucker or an owner of a trucking company should hire a professional to help you with your tax problems. Here are some of the most important ones.
1. Federal Fuel Tax Credit
A transportation business that uses fuel which ends up not being used for operating a registered highway vehicle can save on taxes for that.
For example, if you use non-propulsion motors in your everyday business, like refrigeration units, you can get the credit. Over time that can add up. The tax credit requires a lot of qualifying requirements to be met to receive it, and a professional can explain them to you and help you obtain the credit.
As you already know, trucking implies investment in tractors and trailers. Hiring a financial company helps with the cash flow, and they usually offer up to 60 months for financing. However, the IRS depreciation lasts only for three years. That in effect means that you will end up paying more in taxes after those three years have passed.
Most people don’t know how to deal with this, but a professional can explain everything and help you plan the future accurately, where you don’t have to pay more in taxes than you should.
3. Filing 1099s
Most people in the trucking business don’t know that 1099s are not required for outside carriers, only for owner-operators, but they file them for both to be safe.
A professional can help you correctly understand which are counted as owner-operators so you will end up knowing how many 1099s you need to file.
4. Tax Laws That Affect Truck Drivers
There are several tax laws which every truck driver and trucking company owner should be aware of. Furthermore, you need to know them well enough, so you don’t end up paying more than you have to. An excellent knowledgeable professional give you the advice and information you need.
5. Deduction for Meals and Entertainment Expenses
A trucker working away from home has the chance to deduct their meal and entertainment expenses. However, this is a bit tricky to do, and there is more than one way to do it. We won’t get into specifics as each case is different and the deductions are calculated differently for everyone, by their circumstance. A professional can help explain how it can apply to you and how to achieve these deductions.
All in all, there are plenty more reasons why you should hire a professional to help you out with taxes because there are many things that can save you money when you work as a trucker or operate a trucking business. Contact Golden Tax Relief to schedule a consultation where we will explain everything to you correctly and in great detail.