[Dave_0755]

I'm looking into getting my own authority after the first of the year. I have been doing lots of research and trying to soak up all the knowledge I can. There is one issue that I haven't found an answer for. If I start up a business can I use my home as an office? I don't really want to buy a piece of ground and build an office somewhere just yet. I don't really want to rent somewhere either. Just wondering if I can park my truck here at the house or at the local truckstop and keep my paperwork at home. Thanks for the responses.

[GMAN]

You can have an office anywhere you wish. Starting out it would be wise to keep your office at home. It is important to keep overhead costs down. All an outside office will do for you is cost more money. I have known owners who have had their offices at home with 16 or more trucks. No one really cares where you keep an office. There are some tax advantages to having a home office, not to mention the added convenience.

[Musicman]

GMAN is correct on all counts. One thing to consider before you get gung ho with “home office” tax deductions is that while it is certainly legal to do, and while you are entitled to take certain deductions for having a home office, the IRS does not like it at all when people do take this deduction. My CPA, who has been running her own firm since 1977, says the home office deduction is nothing but one huge fat red flag for the IRS to audit you. She says it is one of their biggest pet peeves (because so many filers use this deduction to cheat on their taxes) and generally the few hundred dollars it saves you in income tax just isn’t worth quadrupling your chances of winning the audit lottery. In all my years of itemizing and having a home office, I have never taken this deduction, though I am considering it for 2010, since my depreciation will be gone on my equipment. Still, if it only saves a few hundred bucks, I can’t see myself taking the plunge.

[Dave_0755]

Thanks guys for the responses. I was almost certain that a home office was ok. The real office for me will be in the truck of course. That's where all the real work will be done day to day. Of course i'm looking at the home office because of a cost cut. My ex says I'm cheap. I say I'm thrifty. I will be paying cash for a truck and trailer and looking to cut overhead anyway possible. If only I could make the truck run on water and get $3 a mile for freight. :clap:

[GMAN]

I have kept an office at home even when I have had an outside office. I will take every deduction that I can legally take. The IRS has been taking a closer look at this industry, but I will continue to take any deductions for which I am entitled unless I don't need the deduction. I don't believe in giving them any more than is absolutely necessary.

You might consider finding a good CPA that is experienced in this business. There are some idiosyncrasies to this business that someone who isn't familiar with might over look. A friend of mine uses a service out of Oklahoma who only works with smaller carriers and owner operators. He pays a monthly fee for them to do his accounting and taxes. There are several similar services around. I have one in my area that has quite a bit of experience with trucking companies. One of his clients has 60 trucks. Most are smaller.

There is also software that is industry specific which can help you keep your expenses and revenue straight. Most sell for somewhere between $125-495. Some will do your IFTA reports, payroll and about anything else you may need. There are two or three that I like. Trucknpro is one of the easiest to use. I like the way it is set up. He just came out with a new version. Easy Trucking is another. This one does your IFTA, invoicing and account aging. It is a little more complex to operate but is relatively inexpensive. I think it runs about $150. Another is Truckers Helper. It is a bit more complex but will do more reports, payroll, etc., They have a version for drivers, owner operators and carriers. There are other programs on the market. I believe all three offer a discount to OODIA members.

Another option is general accounting software such as Quick Books Pro or Peachtree. Those are more expensive and not industry specific. I believe these start at around $295 or so.

If you like doing things yourself you can always use a good spreadsheet.

Regardless of which way you go it is critical to know where you are in your business at all times, especially with the current economy.