Recording Fleet Truck Expenses

[S&D Associates]

I have a client who has leased trucks (8) that delivers for an online business. Client files a Schedule C.
1. Are the expenses recorded under Car and Truck expenses.
2. Can they be recorded under one heading, such as Fleet or do they have to be itemized under each vehicle?

Many of the expenses were lumped together under single headings, like parts, truck cleaning or supplies.

[BOB W]

I have a client that has 40 trucks. I maintain a depreciation list per vehicle. This client over the years has sold trucks and purchased trucks. He is an LLC sole member. The schedule C shows one total depreciation. And one total truck repairs and maintenance.

When you file the return your depreciation schedule will be included with the return. It will be obvious that there is more than one truck, so I would not worry about large numbers on the tax return (sch C).

[ATSMAN]

Most fleet operators have software that tracks part, repairs, maintenance schedules, depreciation etc. for trucks. I used to do the return of a oil delivery business and recall getting a nice report for the tax return.

[BOB W]

Most fleet operators have software that tracks part, repairs, maintenance schedules, depreciation etc. for trucks. I used to do the return of a oil delivery business and recall getting a nice report for the tax return.

Those programs are great for internal control and makes it easy for filling out tax return info.... BUT it is assuming all book entries match report entries.

[mhcpa1964]

I recently learned my lesson about using the car and truck expenses when filing Schedule Cs for trucking/transportation concerns. Last year I used it and the client is now being audited. Going forward will always break out the line items.

[TAXNJ]

I recently learned my lesson about using the car and truck expenses when filing Schedule Cs for trucking/transportation concerns. Last year I used it and the client is now being audited. Going forward will always break out the line items.

Guess not as lucky as other reply posters. First lesson In taxation is “documentation”

[ATSMAN]

I recently learned my lesson about using the car and truck expenses when filing Schedule Cs for trucking/transportation concerns. Last year I used it and the client is now being audited. Going forward will always break out the line items.

Did you use actual expense or standard mileage? How did they maintain their log books? Is IRS questioning the mileage or amounts claimed? I still have a few clients that use paper log books but most have migrated to electronic log books especially if they travel interstate.

[mhcpa1964]

They're questioning gross receipts, car and truck expenses, and meals. Actual expenses were used for everything but meals, where the per diem was used instead.

The agent requested many documents and we were able to talk her into sending a sample of 3 months...thank you agent!!

The client uses online logs but never printed or otherwise saved them. They believed they could retrieve the logs anytime on demand. Unfortunately they cancelled that subscription in favor of a competitor which caused them to lose access to the online logs. Could have been big trouble but so far we've been saved by producing actual receipts and keeping the documentation to 3 month sampling.

[ATSMAN]

They're questioning gross receipts, car and truck expenses, and meals. Actual expenses were used for everything but meals, where the per diem was used instead.

The agent requested many documents and we were able to talk her into sending a sample of 3 months...thank you agent!!

The client uses online logs but never printed or otherwise saved them. They believed they could retrieve the logs anytime on demand. Unfortunately they cancelled that subscription in favor of a competitor which caused them to lose access to the online logs. Could have been big trouble but so far we've been saved by producing actual receipts and keeping the documentation to 3 month sampling.

In the good old days when they had in person audit at the local IRS office, taxpayer and accountant would show up with a big box of receipts and other "junk" and often the agent would pick a few receipts and look at the overall expense and propose a "deal". They did not want to add up all those receipts. I remember once a lady agent offered to allow 50% deduction but then the taxpayer (a handsome man) got her to go up to 75%. And he took the deal.