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Last updated: Oct. 3, 2018
If you are an owner operator truck driver in Canada, there are a large number of tax deductions that you can take advantage of (and should).
Maximizing your tax deductions minimizes your tax burden, which results in you keeping more of your hard-earned money.
Below are some tax tips long-haul Canadian truckers should be aware of.
Keeping Track of Changes and Additions to Claims
Canada’s confusing tax rules are always changing. In fact, the Canada Revenue Agency makes changes every year to what Canadians can claim. Not knowing what these changes are could end up costing you thousands of dollars come tax time. To make sure you’re in compliance with all of the CRAs policies, talk to a professional tax consultant.
What Can You Write-Off?
A lot of long-haul truckers jam their receipts into a bag, shoebox, and even the cubby in the truck because they don’t know what they can and can’t write off on their taxes. The list is actually extensive.
For the most part, long-haul truck drivers can write off almost anything that follows these 3 simple rules:
- The expenses have not been reimbursed by the company
- You have valid log books
- You have receipts for the items you want to write off
If you want to reduce the amount you pay in taxes, here are some of the receipts you should be holding onto:
- Cleaning supplies
- Clothing
- Electronics
- Fees
- In-cab living expenses
- Load securement
- Office supplies
- Tools
Long-haul truck drivers in Canada are allowed to claim 80% of their meal and beverage expenses during eligible travel periods. You can claim this if you are away from your municipality or metropolitan area for at least 24 hours while driving a long-haul truck and the trip is at least 160 kilometers from where you usually report to work.
That figure can be upped if you cross the border. You just have to document when you cross the border and how long you’re stateside.
Long-haul truckers can also deduct 80% of your lodging and shower expenses.
FBC, Helping Long-Haul Truckers Maximize Their Deductions
If you are a long-haul trucker and are not sure what you can claim or have questions, talk to the tax experts at FBC. We have worked exclusively with small business owners, farm operators, independent contractors, and entrepreneurs since 1952.
Over the last 66 years, we have helped tens of thousands of clients, from coast-to-coast, take advantage of all eligible expenses and minimize how much taxes they pay.
In addition to providing tax preparation services, FBC offers, customized tax services, bookkeeping, tax planning, succession planning, financial and estate planning, risk management, and financial reporting.
For more information on FBC and the services we offer, call us today at 1-800-265-1002 or submit an online form and an FBC tax specialist will contact you at your earliest convenience.