? End-of-Year Tax Planning for Owner-Operators (2025 Edition)

Please note: This is not legal or financial advice and should be used for entertainment purposes only. You absolutely will need to do a deeper dive research on each step and consult with an attorney [or multiple ones] to do this legally and safely. Consider a LegalShield Small Business plan as an option to save on your legal expenses.

Get Ahead Now—Avoid the Scramble Later

As an owner-operator, you wear a lot of hats: driver, dispatcher, mechanic, accountant—and this time of year, tax strategist. The fourth quarter is your final chance to make smart moves that could reduce what you owe in April and set your trucking business up for a more profitable 2026.

Here’s your tax planning checklist to finish 2025 strong and roll into next year with confidence.

---

? 1. Know Where You Stand on Quarterly Estimates

If you pay quarterly estimated taxes (and you should), now’s the time to:

• Run a profit/loss snapshot for 2025 so far

• Adjust your Q4 estimated payment (due January 15, 2026) to reflect final income

• Avoid penalties by making sure you’ve paid at least 90% of your total tax or 100% of last year’s (whichever is less)

A big Q4 can throw off your numbers—don’t let a strong December load come back to bite you in April.

---

? 2. Maximize End-of-Year Business Deductions

Use your 2025 income wisely before year-end. Some deductible expenses to consider:

• Truck repairs and maintenance

• Tools and equipment (ELDs, GPS units, CBs, dashcams, etc.)

• Fuel and DEF purchases

• Tires, oil, and parts

• Office supplies and software

• Truck washes and detailing

• Permits and tolls

• Cell phone and internet (business portion)

If it supports your trucking business, it’s probably deductible—just keep the receipts and proper documentation.

---

? 3. Take Advantage of Section 179 and Bonus Depreciation

If you’re thinking about buying:

• A new or used truck

• A trailer

• Heavy-duty equipment or tech upgrades

You may be able to fully expense it in 2025 using Section 179 or 100% bonus depreciation. These rules can dramatically lower your taxable income—but they must be placed in service by December 31.

Important: Section 179 limits and bonus depreciation percentages are phasing down starting in 2026, so this may be your last big chance to take full advantage.

---

? 4. Review Business Structure and Tax Strategy

If you’re still running under a sole proprietorship, it might be time to explore forming an LLC or S-Corp for better tax treatment in 2026.

• S-Corp status may help reduce self-employment taxes

• LLCs can offer legal protection and flexible tax options

• Your tax pro can help determine what’s best based on your income and goals

If you already have an LLC or S-Corp, make sure you’re paying yourself a reasonable salary, and that all bookkeeping is clean before the year closes.

---

? 5. Clean Up Your Books and Records

You don’t want to start 2026 sorting through a year’s worth of glovebox receipts. Before December 31:

• Categorize all expenses (fuel, maintenance, meals, etc.)

• Reconcile your bank statements and factoring reports

• Verify your odometer and track total annual mileage

• Organize any income received from broker apps, direct shippers, or leases

If you use a tax tool or bookkeeping software like TruckLogics, QuickBooks, or ATBS, now’s the time to review everything and prep for 1099s.

---

? 6. Fund a Retirement or HSA Account

Want to lower your tax bill and keep your money? Consider contributing to:

• A SEP IRA, Solo 401(k), or traditional IRA

• A Health Savings Account (HSA) if you have a qualifying high-deductible health plan

These accounts let you reduce taxable income now while investing in your future. You have until April 15, 2026, to contribute—but setting up before December 31 gives you more planning flexibility.

---

? 7. Start Setting 2026 Goals

Use this time to plan for the next big leap in your business:

• Save for new equipment

• Prep to get your own authority

• Launch a side hustle or dispatch service

• Set mileage, revenue, or profit targets

Having clean books and a clear tax picture makes it easier to get business loans, buy insurance, or expand your operation in the new year.

---

? Bonus Tip: Start a “Tax Day Prep Folder”

Create a digital or physical folder labeled 2025 Taxes and toss in:

• Receipts, invoices, and statements

• Insurance and permit records

• 1099-NECs and settlement reports

• Business license renewals

• Any forms from leasing companies, brokers, or factoring agents

When your tax pro calls in January, you’ll be ahead of the game—not scrambling at the last minute.

---

? Final Thought

You already handle complex logistics, tight schedules, and unpredictable freight—your taxes shouldn’t be a mystery too. A few smart moves before the end of 2025 can save you thousands and put your business in a stronger lane for 2026.

From the crew at TruckStopReport.com: stay safe, stay smart, and drive your business forward.