Having to pay taxes is single-handedly one of the biggest reasons why anyone gets nervous about anything these days. But the biggest problem with it is that this anxiety doesn’t help truck drivers. They’re trying to decide whether or not a purchase of a new truck will do damage to their taxes or not. 2020, in general, has been an up-and-down emotion-sickness ride that I think all of us could use a bit of distance from. Some truckers however are trying to bring the understanding to themselves as they debate on their future taxes.
Here’s what you need to know when considering buying for your truck.
You should buy equipment comfortably. The deductions for the year you have may be sparse, and combining that with good income? You might as well buy business-like equipment of whatever value before December 31st. If there’s a lot of depreciation and deductions, waiting until January could be better to spruce up the big rig.
The IRS is still letting depreciation up to 100% happen in one year instead of spreading over a course of three to four years. This goes on until the tax year of 2022 and then starts to drop every year by 20% until it totally expires after 2026. Point is, if you’re looking to snag something for your Peterbilt or even a Peterbilt entirely, consider that fact.
The employer business structures for owner-operator clients – whether it was a single-unit or a whole fleet – had an average income of $62,992 dispensed in 2019. That was before COVID-19. Then the rates dropped heavily and plenty of indie and large carriers alike went through too much pain to look forward to a better financial quarter.
Truck operators that would lease were witness to net income rebouncds within the second and third quarters alone. Exceeding the 2019 average by a bunch.
For more information pertinent to the nitty-gritty of this paperwork, look here.