Truckers Hit Tax Breaks

Truckers Hit Tax Breaks


Truckers can now count themselves among those who will get tax breaks from the federal government. Post-Sept. 11 reparations are allowing anyone who purchases a truck after Sept. 10, 2001, to receive a bonus depreciation of 30 percent in addition to regular depreciation. The bonus depreciation continues to Sept. 11, 2004.

Trucks, and other qualified business property with a recovery period of less than 20 years, such as certain computer software and water-utility property, are eligible for the allowance if they were placed in service after Sept. 10, 2001.

For example, if a business purchases and starts using a new truck for $100,000 in January 2002, it may take a Section 179 expense deduction of $24,000 as well as the new 30 percent bonus depreciation of $22,800 for 2002. Then, it may take normal first-year depreciation based on the remaining cost of $46,000.

These tax-time cuts, which are meant to stimulate purchases, come from Congress’ Job Creation and Worker Assistance Act of 2002, which President Bush signed into law March 9, 2002.

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