Who we work with
We work with established trucking and transportation businesses doing $1M or more in annual revenue: hotshot outfits, freight carriers, owner-operators who have grown into fleets, and the companies that support them.
You’re adding trucks and trailers, hiring drivers, running loads across state lines, and financing equipment that costs as much as a house. Revenue is strong, but between fuel, payments, and repairs, it can be hard to see what you actually keep, and harder still to know what you’ll owe.
- Hotshot operationsHeavy-duty pickups and gooseneck or flatbed trailers, often serving oilfield, construction, and agriculture.
- Freight carriersTractor-trailer fleets running regional or over-the-road freight.
- Growing owner-operatorsOwners moving from one truck to several, with drivers on payroll or under contract.
The tax challenges trucking companies face
Trucking has its own rules, its own filings, and a cash flow pattern that can surprise owners at tax time.
Equipment and depreciation
Section 179 and bonus depreciation can write off trucks and trailers quickly. But a big deduction now means less depreciation later, while the loan payments keep coming. We plan purchases so the deductions land when they help most.
Selling or trading equipment
When you sell a truck you’ve already written off, the gain is generally taxed as ordinary income through depreciation recapture. Timing a sale or trade-in can change what you owe.
Driver meals and per diem
Drivers subject to Department of Transportation hours-of-service rules have special meal deduction rules and per diem rates. How you pay drivers, and whether you use an accountable plan, affects what’s deductible for the business.
IFTA, 2290, and other filings
Interstate carriers file quarterly IFTA fuel tax returns, and heavy vehicles generally owe the annual Form 2290 heavy vehicle use tax. Missed filings bring penalties and can hold up registrations.
Drivers: employees or contractors
Whether a driver is an employee or an independent contractor affects payroll taxes, 1099s, and your risk. The answer depends on the facts, not just the paperwork.
Multistate exposure
Running loads through other states can create filing obligations beyond Oklahoma. We help you understand where you may need to file and keep your business and personal taxes separate.
Strategies that often fit trucking companies
Every operation is different. These are strategies we often review with trucking clients.
- Section 179 and bonus depreciationTrucks and trailers are major purchases, and planning when they’re placed in service can shape your tax bill.
- Heavy vehicles and bonus depreciationHeavy-duty pickups used for hotshot work are often over the 6,000-lb threshold this strategy depends on.
- The S corp electionCan reduce self-employment tax for profitable owner-operators who are still taxed as sole proprietors.
- S corp reasonable compensationSetting and documenting your own salary the right way is key once you’re an S corp.
- The Oklahoma PTE electionOklahoma pass-through entities may be able to turn state income tax into a federal business deduction.
- The accountable planA written plan lets the business reimburse you and your team for business expenses tax-free.
- Own the building, rent it to yourselfIf you own your yard or shop, holding it in its own LLC can add protection and planning options.
Advanced strategies for higher-income owners
Larger fleets, and owners planning an exit or passing the company to family, often need more than the basics.
- Selling to an ESOPSelling to your employees through an ESOP can let a C corp owner defer the tax on the sale.
- Selling your trucking companyEquipment recapture, goodwill, and a non-compete are taxed differently, so the allocation of the price matters.
- A cash balance planProfitable owners can deduct far more for retirement than a 401(k) alone allows.
- C corp vs. S corpIf you keep profit in the company to grow the fleet, the 21% corporate rate is worth testing.
- Avoiding the 3.8% net investment income taxRent from a yard or terminal you lease to your own company can stay out of the 3.8% tax when the rules are met.
- Lifetime gifts and SLATsMove future growth of the company out of your estate if family will take it over.
Everything under one roof
One monthly Tax Plan, starting at $475 per month and priced by complexity, built for businesses with $1M or more in annual revenue. One team for your taxes, books, and filings.
See all services- Year-round tax planningWe run the numbers before you buy, sell, or trade equipment.
- Business and personal tax returnsYour business return and your personal return, included in your plan.
- BookkeepingMonthly books that track fuel, maintenance, and equipment, so you can see what each truck earns.
- Payroll and 1099sDriver payroll and 1099s for contractors, handled on time.
- Sales tax and compliance awarenessSales tax filings where they apply, with reminders for IFTA and Form 2290 deadlines.
- Quarterly estimated paymentsCalculated for you, with personal and business amounts shown separately.
- IRS audit protection and representationWe can represent you before the IRS.
- CFO-style reportingCost per mile, cash flow, and profit reporting to help you price loads and plan growth.
- Direct access to your advisorCall before you sign for that next truck.
An illustrative example: writing off two new tractors
Picture a carrier taxed as an S corp that buys two new over-the-road tractors for $360,000 and puts them in service in 2026. Over-the-road tractor units are 3-year property. The owner is in the 37% federal bracket.
For illustration purposes. Tax law may change, which may change these calculations slightly.
| Regular depreciation | 100% bonus depreciation | |
|---|---|---|
| Year-one deduction | $119,988 (33.33% in year one) | $360,000 |
| Extra year-one deduction | $240,012 | |
| Extra federal income tax saved this year (37%) | about $88,804 |
Bonus depreciation moves about $240,012 of deductions into the first year, lowering the owner’s federal income tax this year by about $88,804, even if the trucks are financed. The Oklahoma effect depends on whether Oklahoma follows federal bonus depreciation for the year, which we confirm before counting on it.
Regular 3-year depreciation would have caught up within a few years, so this is mostly a timing benefit. When you sell or trade in a truck, the price up to the depreciation taken is taxed as ordinary income. Trade-ins no longer qualify as like-kind exchanges, so a trade-in counts as a sale.
Illustrative example. The carrier and figures above are hypothetical, used to explain how the strategy works. They are not a client and not a promise of results. The example assumes new tractors acquired after January 19, 2025, the half-year convention for regular depreciation, and that the owner can use the full deduction in the 37% bracket. This page is educational and is not tax advice for your situation.
Questions trucking business owners ask us
Should I write off a new truck all at once?
Not always. A full write-off can lower this year’s taxes, but it leaves less depreciation for later years while loan payments continue. We look at your income this year and next, then recommend the timing that fits.
Do you work with hotshot operators?
Yes. Hotshot businesses have their own mix of heavy pickups, trailers, and irregular revenue, and we plan around all of it.
Can you help with per diem for my drivers?
Yes. We review how your drivers are paid and whether an accountable plan and the transportation-industry meal rules fit your business, then set it up so it’s documented properly.
Do you file our IFTA and Form 2290?
We keep these deadlines in view as part of your plan and make sure your books support the filings. Ask us during your free tax analysis about how we handle them for your operation.
What happens when I sell or trade in a truck I wrote off?
The sale price, up to the depreciation you took, is taxed as ordinary income (depreciation recapture). Since 2018, like-kind exchanges apply only to real estate, so trading in a truck counts as a sale of the old one. We plan trade-ins and sales so the recapture doesn’t catch you off guard.
Should my trucks and trailers be owned by a separate company?
Some carriers hold equipment in a separate LLC that leases it to the operating company. It can protect assets and help with succession, but it adds filings and the lease must be at fair rent. We look at whether it fits your liability, financing, and tax picture.
Can I sell my trucking company to my employees?
Sometimes. An ESOP can buy some or all of the owner’s shares over time, and a C corporation owner may be able to defer the tax on the sale. It works best with steady profit and a management team that can run the company. We look at whether it fits your goals.
Watch the stories
One-minute stories about owners like you. Illustrative story; the people are fictional and are not clients. See all story videos.
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