Can I deduct deadhead miles?

You are already deducting deadhead miles if you are giving us all of your expenses when you are on the road. You are deducting 100% of the costs for repairs, fuel, insurance, supplies and other truck expenses. If you drive 1800 miles and are only paid for 1700 miles, as long as you submitted all of your expenses, you have deducted all the costs associated with the deadhead miles. The IRS does not allow for any additional deductions for deadhead miles.

Should I buy or lease my truck?

This is question is dependent on your personal circumstances and a number of variables that are not in your control. One of the main considerations is what will the resale market be like for trucks. If we had a crystal ball that could predict the future, the buy versus lease question would be much simpler. Over the full term of the lease or purchase, the tax deductions and out of pocket expenses are going to be very similar. A purchase may allow us to take advantage of accelerated depreciation, thus allowing more of the purchase price in the first year. A purchase will allow you more flexiblity for tax planning in the first year. A lease is often easier to get out of, and thus is a more conservative approach when starting out as an owner-operator. There are two types of leases. If the lease is considered a capital lease (you own the truck at the end of the lease) the tax consequences are different from a lease where ownership is not going to transfer. Our advice is to review your personal situation, the interest rate or imputed interest rate, payment amount, and terms to see which deal works the best for you from a cash out of the pocket standpoint. Understand your goals and select the best deal that will help you achieve them.

When are estimated tax payments due?
 

• April 15
• June 15
• September 15
• January 15