Trucking has some major perks: The freedom, the views, and the tax deductions, to name a few.
Fortunately for truckers on a budget, most everyday trucking expenses, including tires, are tax deductible. Many truckers are aware that deductions can be made on their tire spending. Still, many haulers miss out on deductions related to tire maintenance, depreciation, section 179… and the list goes on.
Before diving into the savings, it’s first significant to note qualifications and disclaimers.
Who Qualifies for Tax Deductions on Tires?
Only self-employed truckers can qualify for tax deductions on trucking-related expenses. This group includes contract drivers and owner-operators, but carriers hauling for a corporation are unfortunately exempt.
Additionally, any information related to taxes is best administered by a tax professional. This guide is not intended to replace professional advice.
Here are a few tire-related deductions to add to your tax agenda.
Installation of Tires
Tax deductions can be made on purchasing tires related to your trucking business. Did you know that these deductions include installation fees?
When calculating deductions on your tires, don’t stop at the at-face price of your tires. Truckers can include the costs of mounting, balancing, and disposing of old tires to maximize deductions.
Depreciation
Deductions shouldn’t stop at the acquisition of your new tires.
Truckers can reap deduction benefits long after purchasing by taking depreciation into account. Though the deduction amount will vary, truckers can spread out the expense of a tire’s useful life by deducting a tire’s cost each year.
Section 179
Section 179 allows small businesses to deduct depreciable assets, like tires, as an immediate expense. This strategy works in place of making deductions on depreciation. This option is ideal for truckers hoping to get a quick tax break rather than spread their deductions through depreciation over time.
Qualifications for Section 179 vary, so review the section criteria before counting on making the deduction.
Repairs and Maintenance
This category of deduction is huge for carriers running retreads.
All maintenance and repair efforts expended on tires are tax deductible. This includes patching, balancing, and retreading. Retreaded tires can continue to provide maximum savings other than a lower initial cost.
Aside from the opportunities listed above, other deductions also exist, including tax credits and state-specific deductions. The criteria for these deductions vary from state to state, so research deductions in your local area for other opportunities.
Tax deductions are a powerful tool in the arsenal of the budget-minded trucker. By calling on tax deductions, you can save hundreds in your end-of-year bottom line on expenses you’d make regardless.
For additional information on tax deductions for other expenses, like fuel, click here.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.