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Accounting for trucking and transportation
Owner-operators and small fleets moving Idaho agriculture, with the deductions that come with it.
Freight moves constantly through this valley, hauling agricultural product out and inputs in. Trucking has a specific set of tax questions, and the per diem rules alone are worth getting right because they apply to every day a driver is away.
Per diem and meal allowance
Drivers subject to hours-of-service rules can deduct a per diem for days away from home, at a higher allowable percentage than ordinary business meals. Over a full year of driving this is a substantial deduction and it depends entirely on the records kept.
Equipment depreciation
Tractors, trailers and major component rebuilds each have their own treatment. Section 179 and bonus depreciation apply, and the timing of a purchase against a good or bad income year is a real planning decision.
Owner-operator versus employee
Lease-purchase arrangements and owner-operator agreements have to be structured so the classification holds up. This is examined closely in transportation.
Cash flow
Fuel, maintenance and insurance run continuously while receivables sit at 30 or 60 days. Knowing the cash position several months out is what keeps a small fleet solvent through a slow quarter.
Work with Ruth
Forty-eight years in the Magic Valley, and the same small office on your file start to finish.
Services used most
Other industries
Common questions
I am a single owner-operator. Is this overkill?
No. Owner-operators have the most to gain proportionally, because per diem and equipment depreciation are large relative to the revenue.
Should I be an LLC or an S-corporation?
Once net income is consistent and reasonably high, an S-corporation election often makes sense. Below that the payroll cost outweighs the saving.
Referred by someone we work with?
Call the office and speak to Bailey. She handles the calendar and will get you in front of Ruth.