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Top Tax Tips for Owner-Operators

As an essential worker, you work hard for your money. Maximizing what you can deduct minimizes your tax burden and allows you to keep more money in your jeans. Keeping reading for our best tax tips for owner-operators!

Don’t know what you can write off?

Like many owner-operators, perhaps you keep the cubby in their trucks jammed packed with receipts saved up over the year. Often you don’t know what you can or can’t write-off, so you end up keeping them all.

Something important to remember as a long-haul driver is that you can write-off 80% of your meal and beverage expenses while on the road. However, there are a few restrictions. You must be away from your municipality for at least 24 hours. Alternatively, your trip must be at least 160 kilometers away from where you usually report to work. You may be able to write-off more if you have travelled across the border to the USA. Owner-operators are also able to claim 80% of lodging and shower expenses.

Here are some other receipts you should keep if you want to minimize the amount of taxes you pay:
  • Truck lease payments
  • Repairs and Maintenance
  • Cell phone bills
  • Tools
  • Load securement equipment
  • In-cab living expenses
  • Office equipment and supplies
  • Cleaning and cleaning supplies
  • Electronics
  • Clothing
  • Fees paid

Most owner-operators have expenses deducted from their settlement for fuel, insurance, tolls.

If your carrier does deduct these, make sure you submit these expenses too.

Generally, most owner-operators can claim anything that follows these general guidelines:
  • The expenses have not been reimbursed or deducted from your settlement by your carrier
  • You have receipts or proof of payment for the items you are claiming

 

Additionally, your log books must be up-to-date and valid.

The tax laws in Canada are very complex and always changing. To make sure you comply with all of the CRAs policies, talk to a professional tax consultant.

If you are looking to lease a truck to become an owner-operator or would like to replace your existing truck, we are here to help. And remember, we only succeed if you succeed!

We hope our list of tax tips for owner-operators helped you a bit.

Open roads to you, Transportation Captains!

Yours truly,
Ernie Holmes
eholmes@powerlease.comF

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