Are Trucking Companies Sales Tax Exempt? (& Other Tax-Related Questions)

Many of our readers have submitted questions which are tax-related. Here is our take on things:

We recommend contacting a CPA who is experienced in trucker taxes. We do not offer financial or tax advice of any kind. An accountant who knows trucking business taxes is worth every penny.

If you sell a used truck via private sale, is that considered taxable income?

Generally speaking, you pay taxes if you sold the truck for more than you originally bought it for or its depreciation value. You would then only pay taxes on the profit. The profit would be considered as a capital gain. If you sold your used truck for less than you originally paid for it or its depreciated value, there is no taxable income.

What can truck drivers claim on tax returns?

Consult a tax expert for accurate tax practices.

Do you ever make money back from the government due to tax deductions from gas, miles, repairs, etc.?

A business will post a profit or loss. If you profit, you will be taxed accordingly. If you are at a loss, you won’t be taxed. If you are at a loss for a couple of years, the government will deem your business a “hobby”.

What is the best way to file taxes as an owner-operator?

You want to hire a Certified Public Accountant (CPA). You can also check out ATBS for trucker taxes. Don’t use H&R Block. It’s suggested to manage your taxes on a quarterly basis.

Are trucking companies sales tax exempt?

Trucking companies being exempt from paying sales tax depends on the jurisdiction and the items purchased. Not all purchases are eligible for sales tax exemptions. This varies by state and country.