Year End Tax Planning
If you are like most owner operators, your fiscal year end coincides with the calendar year end — 12/31. So in the midst of all the freight that you are moving this time of year, the last thing you want to be thinking about is Uncle Sam and Tax Bills. We get that. But there are some helpful things to be thinking about as the end of year approaches that could save you so money on taxes come April 15th.
Year-end cut-offs are important. $500 spend on fuel on December 31st could have a different tax impact on you than $500 spent on January 1st 2017. Insurance premiums paid on December 31st in a cash basis business is different than Insurance premiums paid on January 1st, 2017. Don't ignore when you spend your money. Pay attention to the calendar. It matters.
Repairs & Maintenance and Capital Expenditures - Once again, repairs and maintenance expenses can have a significant impact on your taxable income. Maybe after the Holiday rush but before year end, plan on putting your truck in the shop for repairs and maintenance you know will have to be done. If you don't have all of the funds available to get the repair done, Big Rig Lending can help you bridge that financial gap (See our article in Augusts 2016 - Big Rig Lending Building Bridges)
Organize your paperwork. Begin to pull your bank statements, load sheets, fuel reports, etc. together. Are you missing a month here or there? Now is the time to find organize those docs and make sure you have everything your accountant is going to need. Review those bank statements for large expenses you may have forgotten about. Highlight those and share them with your tax preparer.
Nobody enjoys paying Uncle Sam, but there are some practical things you can do to minimize that check that is due roughly 4 months from now.
As always, consult your tax advisor for specifics regarding your particular tax situation.