If you are a self-employed individual more than likely you have spent money to make money. It's important that you keep record of those expenses so you can use them as deductions on your return.
Although we often hear driver's say "
I don't spend any money out on the road". To help you determine what is tax deductible in your field, here are three questions you should ask yourself:
Is it ordinary for your industry? (note: you are not just in the trucking industry, you are in the transportation and logistics industry).
Is it necessary for your industry?
Do you have an expense?
If you can answer yes to these three questions, more than likely the item in question will be a deduction.
Let's use fuel as an example:
Is fuel ordinary for transportation?
Is it necessary for transportation?
Do you have an expense for fuel?
As shown by our answers above, fuel is most definitely an example of a deduction for someone in the transportation industry.
At Abacus CPAs, LLC, we like to give you guidance so you can make smart decisions related to your business deductions
. Be sure to KEEP YOUR RECEIPTS for proof of your expense!
The 2017 per diem rate is $63 a day. As an over the road driver you can receive 80% deduction on your return for every day you are working away from your home.
Abacus CPAs, LLC is here to help you run a successful business! We would be more than happy to help you with any questions or concerns you may have. Please contact us at 417.380.5000.