Pick the right IRS return for your business
Sole proprietors (including most one‑truck owner‑operators and single‑member LLCs taxed as disregarded entities) typically file Schedule C with Form 1040. Partnerships (including most multi‑member LLCs) file Form 1065, and S corporations file Form 1120‑S. Choose the form that matches your entity and how you elected to be taxed.
If you hire independent contractors, remember the 1099‑NEC. The IRS requires you to file with the government and furnish the recipient by January 31 each year. Electronic filing is encouraged, and some filers now fall under mandatory e‑file rules.
Vehicle deductions: mileage vs. actual costs
The IRS business standard mileage rate is 70 cents per mile for 2025. That rate covers depreciation, fuel, maintenance, insurance and more. But it’s only for “cars”—which the IRS defines to include cars, vans, pickups and panel trucks. Most Class 8 tractors won’t qualify, so owner‑operators running tractors typically use the actual‑expense method (fuel, repairs, insurance, tires, depreciation/lease).
If you do qualify and want to use the standard mileage rate, you generally must choose it in the vehicle’s first year of business use; certain elections (like Section 179 or bonus depreciation) will lock you out of mileage for that vehicle.
Meals and per diem: bigger bite for DOT drivers
Trucking professionals subject to DOT hours‑of‑service rules can deduct 80% of business meals (versus the usual 50%). You can use actual meal costs or the special transportation‑industry per diem. For travel on or after October 1, 2024, the special M&IE per diem is $80 inside CONUS ($86 OCONUS). Apply departure/return day prorations and keep records showing you were away from your tax home.
Heavy Highway Vehicle Use Tax (Form 2290): mark your calendar
Form 2290 runs on a July 1–June 30 tax period. For vehicles first used in July 2025, the filing deadline is based on first‑use month (for July‑in‑use vehicles, early September 2025). E‑file is required if you report 25 or more vehicles; your stamped Schedule 1 is your proof at DMV. Low‑mileage vehicles (5,000 miles or fewer; 7,500 for farm) still require filing but no tax until the threshold is exceeded.
2025 write‑offs for tractors, trailers and shop gear
Section 179 expensing: For tax years beginning in 2025, the inflation‑adjusted Section 179 limit is $1,250,000, phased out dollar‑for‑dollar when total qualifying purchases exceed $3,130,000; the SUV cap is $31,300. These figures help many small fleets expense a significant portion of equipment placed in service this year.
Bonus depreciation: Under the original TCJA phase‑down, bonus depreciation fell to 40% for most property placed in service in 2025 (with different timing for long‑production assets).
New for 2025: Congress restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025, via tax legislation enacted July 4, 2025. That change, reported by major outlets and tax advisors, effectively supersedes the scheduled 40% rate for property placed in service after that date. Confirm timing with your tax pro if you ordered equipment early in the year.
Don’t miss these owner‑op and fleet manager to‑dos
- Quarterly estimates: If you show profit on Schedule C, plan for income and self‑employment taxes via quarterly estimates to avoid penalties.
- QBI deduction: Many pass‑through trucking businesses may deduct up to 20% of qualified business income, subject to taxable‑income thresholds that adjust annually; the provision is scheduled to sunset after 2025 unless extended.
- Substantiation: Retain ELD logs, trip sheets, fuel/IFTA reports, settlement statements and receipts. Per diem requires overnight travel away from your tax home.
- 1099 hygiene: Collect W‑9s from contractors now; verify TINs; file and furnish 1099‑NEC by January 31.
Bottom line: Match your form to your business, choose the right vehicle‑expense method, capture your meals and per diem correctly, and time equipment purchases to take advantage of 2025’s Section 179 and revived 100% bonus depreciation. For complex fleet structures, multi‑state operations and equipment financing, coordinate early with a trucking‑savvy CPA.
Sources Consulted: Internal Revenue Service; Journal of Accountancy; The Wall Street Journal. Note: The referenced University of Tennessee PDF (“Trucking Business Tax Preparation”) could not be accessed at the time of publication; we relied on current IRS guidance and major outlets for verification.
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This article was prepared exclusively for truckstopinsider.com. For professional tax advice, consult a qualified professional.
