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Lifestyle Trucker News

Tax Deductions for Owner-Operator Log Truck Drivers

As the owner-operator of your own rig, you are an independent business owner. Congress has written a number of provisions into the tax law to enable you to more accurately assess your income so that you can be assessed a fair income tax. If you operate as a sole proprietor, you will deduct your business expenses on Schedule C of your personal income tax return. If you are taxed as an S-corporation, then you will account for expenses on your Form 1120S.

Section 179

Section 179 of the U.S. tax code allows businesses and individuals who put large dollar amounts of capital equipment, machinery or vehicles into service in a profit-making enterprise to take a first year tax deduction of up to $500,000. Certain limits and conditions apply for smaller passenger vehicles. However, large log trucks will generally qualify for the full deduction.

Loan Interest

If you are carrying a note on your truck or on any other business-related equipment, the interest is a tax-deductible expense. This can be a significant line item for truckers operating large rigs. You can also deduct interest on a personal home loan, on loans up to $1,000,000 secured by your primary residence, or on home equity loans of up to $100,000 secured by your primary residence.

Communications Expenses

You can deduct the costs of a dedicated cell phone and the costs of all business-related transmissions. You can also deduct the costs of a CB radio you use for business purposes, Internet fees, global positioning system fees and satellite phones.

Lodging and Meals

You can deduct any lodging costs you incur on the road. You can also deduct a standard meal allowance, or per diem, for any days you spend on the road away from home. For most areas, you can deduct up to $46 per day for meals. Some higher expense areas allow for higher deductions. You should keep your drivers log books for up to three years, however, to document your travels, in case you are audited.

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Lifestyle Trucker News

Semi-Truck Driver Salaries in Arizona

Semi-truck drivers work long hours hauling cargo across cities, states and even the country to ensure people have groceries, office supplies and other necessities. Semi-truck drivers may be owner-operators of the semi or rig while others work for major retailers and chains to deliver product to each location. In Arizona, semi-truck drivers earn an average salary just above the national average.

Arizona Average Salary
As of May 2009, the Bureau of Labor Statistics recorded a total of 22,030 semi-truck drivers working in the state of Arizona. They earned an average salary of $39,780 per year or $19.13 per hour. The median, or 50th percentile salary, was lower at $39,100 per year or $18.80 per hour.

In-State Salary Variance
Mean salaries vary by market and Arizona is no exception. A vast majority of semi-truck drivers in Arizona reside in the combined Phoenix-Mesa-Scottsdale area, making up about 75 percent of the state’s semi driver population. In Phoenix-Mesa-Scottsdale, the average salary in 2009 was $40,910 per year or $19.67 per hour, 2.8 percent higher than the state average. In Flagstaff, the mean salary was lower at $39,980 annually or $19.22 hourly. Yuma reported 520 semi truck drivers operating from the city with an average salary of $34,460 a year or $16.57 an hour.

State Average Comparisons
Market salary variance is not only by city but state as well. For example, Iowa paid their semi-truck drivers an average $37,780, 5.9 percent less than Arizona. Connecticut, on the other hand, paid more at $43,960 annually, 9.6 percent more than Arizona’s mean. Alaska paid more than any other state with an average salary of $49,480, 24.4 percent more than an Arizona semi-truck driver’s average of $39,780 per year.

National Average Comparison
The Bureau of Labor Statistics states that the national mean salary for truck drivers in the United States was $39,260 per year. Arizona’s average semi truck driver salary of $39,780 places it only a few hundred dollars higher than the national average and in the 50th to 75th percentile pay grade nationally. This means Arizona is one of the higher paying states in the U.S. for semi-truck drivers though some states still pay more.

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Lifestyle Trucker News

How to Ride a Motorcycle in Snow

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When you ride a motorcycle, you’re already more engaged in the experience of driving than those who are in automobiles. When you add snow to the mix, you have to be ever more careful and cautious with just about every move you make. Here are some tips to help you survive–and enjoy–the experience.

Determine the severity of the weather and road conditions on your route of travel. Do this as best you can before you start out. Ask friends or colleagues, or anyone who has recently driven the route to give you an idea of what you’ll be facing.

Drive with care and caution as you always do. Assume that you are invisible to all other drivers on the road. This is true in the summer, but especially so in the winter months, as almost no one is expecting to see a motorcycle rider in the snow. If they don’t expect to see you, that often translates into not seeing you at all. Be ready to react by keeping plenty of distance between you and other vehicles.

Drive slowly. Enjoy the day at slower than normal speeds. The road may be dry in front of you, but ride on a bit further and you may run into ice patches, water or other slick surfaces that can come at you by surprise.

Ride up on the gas tank more often. Clutching your thighs tightly to the gas tank when slipping and sliding on the snow can give you more steering control and will make it less likely that the bike will slide out from under you in a fishtail motion. Again, if there’s snow, you probably shouldn’t be there, but if you are, ride more tightly.

Use tire chains if you must ride. The going will be slower, and you still have the danger of ice causing your tire to slide out from under you at any moment, but at least you have a bit more traction.
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Lifestyle

Tax Credits for Truck Drivers

Truck drivers, whether they are owner-operators or drive professionally for an organization, can deduct a number of on-the-road expenses on their federal income taxes. Special rules apply to truck drivers; The IRS recognizes the importance of trucking in the national economy and acknowledges there are many expenses incurred in the profession. Owner-operators are afforded a few more deductions to subsidize the expense of owning and operating their semitrucks.

Equipment and Related Expenses
Owner-operators garner the largest deductions in the equipment and equipment-related expenses category. According to the federal tax code’s Section 179 Deductions for Tangible Property, a truck owner does not have to depreciate his truck over the long term, but may instead be able to make a large one-time deduction. The maximum Section 179 expense deduction for qualified real property is $250,000. Repairs and maintenance to the truck may also be deducted. Truckers are allowed a deduction for gas expenses and the purchase of products related to the operation of the truck as well.

Communication Expenses
Because truckers are on the road for the majority of their work time, they often spend a great deal on communication expenses. Expenses such as cellphones, cellphone service, CB radios, satellite networks for computers, computer software and laptops may all be included as business-related expenses and are deductible at a percentage of their original cost. If you use your cellphone for personal use as well, you may only deduct business-related usage.

Personal Expenses
Personal expenses for truck drivers differ from those for businesspeople who are traveling. Truckers often sleep in their trucks instead of paying for a hotel. If you purchase a sleeping bag, bunk, blankets, hot pot or truck stop showers, you can deduct all of these as business- related expenses. Trucking companies will sometimes pay drivers a per diem for food. In these circumstances, the driver cannot deduct the amount of the per diem, but may be able to deduct meals that exceed the per diem up to the IRS limit. Owner-operators who do not receive a company per diem to cover food may use the special deduction for employees involved in transportation. As a truck driver as of 2010, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Truckers should verify these deductions annually as they are often modified by the IRS.

Considerations
Throughout the year, as you conduct your duties as a company truck driver or an owner-operator, you will encounter expenses. To get the most out of your tax deductions, you need to keep and organize all receipts that are business related. Purchasing an expandable file folder and files is an easy way to organize your receipts. Label files according to the nature of the receipts; truck repairs and maintenance, food, lodging, communication and perhaps miscellaneous. If you don’t have an official receipt, include a handwritten receipt with the amount of purchase, date and what it was for.

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Lifestyle Trucker News

What Is the Average Income of a First-Year Truck Driver?

If you have a love for the open road but don’t mind working long hours in solitary conditions, truck driving may be a good career for you. Entry-level truck driver salaries can vary widely based on a number of factors, such as geographic location covered, the company you work for, mileage and cargo value.

National Salary

Long-haul truck drivers should expect to be paid by the mile, while more local drivers earn an hourly wage. First-year drivers will earn less than their more experienced counterparts, and will likely fall in the lower spectrum of average earnings. According to national 2010 data from the United States Bureau of Labor Statistics, the lowest 10 percent of drivers earn $24,730 annually. The lower 24 percent earn $30,270 annually. The median salary is $37,770, while the top 10 percent of driver earn $57,480.

Geographic Factors

A driver’s route and location also plays a part in determining salary. The BLS cites Alaska and Nevada as the top-paying states for truck drivers, with mean salaries of $48,250 and $46,470, respectively. New Jersey, Massachusetts and New York round out the five top-paying states, with annual mean wages around $43,000. The Chicago-Naperville-Joliet area is the highest-paying metropolitan region, with annual mean wage of $45,400.

Industry

The cargo for which drivers are responsible for hauling influences wages. Certain industries pay more than others. For example, truck drivers for the postal service typically earn the highest, with an annual mean salary of $54,040. The industry with the highest levels of employment — general freight trucking — pays an annual mean salary of $41,100.

Bonus and Advancement

First-year drivers earn on the lower spectrum of hourly wages and may not have a fixed route or schedule in the beginning. Some truck drivers begin by substituting for regular drivers who are out sick or on vacation. As a driver progresses in his career, he has the potential to earn bonuses or more preferable routes and schedules. The longer a driver works with a track record for safety, the more he will likely earn.

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Owner Operators

The Average Pay of an Owner Operator

Owner operators, or long haul drivers, drive vehicles that have a minimum of 26,001 pounds gross vehicle weight. They are responsible for hauling various products and goods across long distances by a certain deadline. These truck drivers lease or own their own vehicles. The United States Bureau of Labor Statistics groups them in with truck drivers, heavy and tractor trailer. The pay for this field varies with the type of industry and area worked.

Earnings at the National Level

The United States Bureau of Labor Statistics states that these drivers earned a mean annual income of $39,450 and an hourly rate of $18.97 in 2010. Those in the 90th percentile earned at or above $57,480 annually and $27.64 per hour, while those in the 50th percentile earned at or below $37,770 a year and $18.16 per hour. Those in the 10th percentile earned at or below $24,730 a year and $11.89 per hour in 2010.

Earnings by Industry

The postal service offered the highest mean annual salary of $54,040 and $25.98 per hour in 2010. Couriers and express delivery services were paid the second highest mean annual rate of $53,900 and $25.92 per hour in the same year. Spectator sports offered the third highest mean yearly salary at $51,530 and $24.77 per hour. Household appliance manufacturing offered the fourth highest mean yearly pay at $50,920 and $24.48 per hour in 2010.

Earnings by State

The state of Alaska offered the highest mean annual salary of $48,250 and $23.20 in 2010. Nevada had the second highest mean annual rate of $46,470 and $22.34 per hour, while New Jersey offered the third highest at $43,860 per year and $21.09 per hour. Massachusetts had the fourth highest mean yearly compensation at $43,670 and $21 per hour. New York paid the fifth highest with a mean annual rate of $43,380 and $20.86 per hour in 2010.

Earnings by Larger Urban Areas

Fairbanks, Alaska paid the mean highest annual salary of $53,170 and an hourly rate of $25.56 in 2010. Danville, Illinois offered these professionals the second highest mean annual salary of $52,320 and $25.15 per hour in the same year. Racine, Wisconsin paid the third highest mean annual salary at $50,470 and $24.26 per hour. Grand Rapids and Wyoming, Michigan paid the fourth highest mean annual salary at $48,500 a year and $23.32 per hour in 2010.

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Lifestyle Trucker News

How to Improve Transportation Safety

According to UnitedJustice.com, highway deaths make up 94% of transportation deaths. More than 100 people die in transportation accidents every day in the United States. Local transportation safety plans and guidelines are intended to prevent unnecessary accidents and save lives. Identifying trends is key to eliminating as many accidents as possible and promoting transportation safety for everyone on the road. If you’re hoping to improve transportation safety issues in your area, take into consideration traffic signals, emergency response and traffic flow, which are are all important safety issues for every type of vehicle on the road.
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Focus on roads that have a history of accidents. Areas that are known for congestion can be made better by geometric improvements or new signals. Road safety audits are examinations carried out by a team of people in order to determine potential safety issues on roads and at intersections.

Educate your local townspeople about crashes involving deer. According to Rutgers, drivers should understand that deer/vehicle collisions happen most often during the fall season at both dawn and dusk, when visibility is low. If you spot a deer in the road or on the side of the road, slow down but don’t veer to one side. Let the deer pass and be forewarned that other deer may follow.

Finance the safety programs. Without financial backing, transportation safety programs cannot be established and safety issues won’t change or improve. Funding can come from local, state and federal sources, as well as local transportation agencies. Fire departments and rescue departments may be willing to contribute money for this cause.

Encourage drivers not to use their cell phone while driving. Whether dialing a number, texting or being involved in a conversation, drivers who use their cell phones run the risk of being distracted and having an accident. Drivers can use a headset or Bluetooth device if they need to talk on the phone while driving. However, according to PacificTel.com, hands-free devices are still not as safe as simply not using a phone while behind the wheel.

Promote different modes of transportation, such as walking or cycling. Less people in vehicles on the road means less congestion and accidents. The amount of greenhouse gases being emitted would also be reduced.

Increase safety at crosswalks to prevent pedestrian accidents. Pedestrians who get into accidents with motor vehicles must be protected under transportation safety initiatives as well. Providing crossing guards at crosswalks during heavy traffic times would improve safety. Also, installing timers at crosswalks that designate 30 seconds for pedestrians to cross the street would help to ensure that motorists are stopped at the intersection.

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Owner Operators

What Is the Average Income of an Owner-Operator Truck Driver?

One of the dreams of many job seekers is to have a job that allows them to tour America and see its many beautiful sites. Some choose to be owners-operators of trucks for this reason, while others choose to drive trucks for the promise of substantial wages. There is more to trucking than simply looking at your potential gross wage when determining if this field is right for you. There are several factors in determining the real wage for an owner-operator trucking professional.

Salary and Benefits Overview
According to the industry’s association, the Owner Operator Independent Drivers Association, the average gross income for an owner-operator was $158,005 in 2008, a time of high fuel prices. Being self-employed, most owner-operators must purchase their own benefits programs such as insurance and retirement, and will only have a traditional vacation by merely choosing not to accept jobs during a planned absence. The U.S. Bureau of Labor Statistics estimated that the average net wages for a truck driver in 2010 was $18.97 per hour, or $39,450 annually, before overtime.

Computing Net Wages

The same Owner Operator Independent Drivers Association survey explained the difference in owner-operator’s pay discrepancy by discussing the many expenses associated with this occupation. An employed truck driver who drives the truck of his company doesn’t have many of the associated repair and fuel costs that one who owns his own truck has. The gross expenses for a owner-operator trucker during this survey was $117,458. Considering all factors, including tax deductions and other business factors, the average yearly net profit for an owner-operator was $49,711.

Work Environment

Work environment can certainly play into computing the net wages for an owner-operator. If you are willing to drive to any destination with any cargo that meets your commercial driver’s license endorsement criteria, you will likely find more job opportunities than a driver limiting these factors. If you are willing to sleep in your truck’s sleeping compartment, prepare your own meals and research fuel prices, you can significantly reduce gross expenses over a year’s time.

Other Considerations
While no formal education beyond truck driving school is required to be an owner-operator truck driver, if you develop better business skills, either in a college setting or in self-study, you will likely make and keep more money. Learning basic truck maintenance and repairs can also save you a considerable amount per year. Team driving, which allows overnight driving, will also directly affect efficiency income, making this a popular occupation for couples. High fuel prices also play a significant role in the profitability of an owner-operator driver and may lead to tighter competition, driving down income.

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Lifestyle Trucker News

Internet to Buy and Sell Trucks

Used trucks once sold by running ads in newspapers and magazines, posting them on a public bulletin board and by word of mouth. Some people still use these methods even though they are not as effective as the Internet. The web has continued to grow attracting more and more people of all age’s everyday. Internet advertising reaches more people than any other media outlet. Online ads allow millions of people worldwide to see the product resulting in more sales and for buyers it allows them to locate better deals. It is a win situation for everyone.

The web is the ideal place for truck dealers to advertise their product. An Internet experienced dealer knows hot to list their trucks to get the best results. Start by taking pictures. When a shopper is not physically on site pictures are the next thing. Take photos from every angle from the top of the truck to the bottom showing that you have nothing to hide. Post pictures of the inside of everything from the seats to the dashboard, and on the outside from the tires to clearance lights on top.
Written text is as important as photos. List all the trucks specifications as if you were the buyer. Using this method to list your specifications and features makes it more likely that your listing will be complete. List any special or outstanding features that would attract buyers. If it is possible list the maintenance the truck has received. A detailed maintenance schedule attracts buyers because a well-maintained truck indicates the past owner has taken good care of it leaving less for the buyer to perform. Strong descriptions and pictures increase the click rate by 85 percent.

Choose the online advertising site where the pictures and text will appear. Some sites allow you to set up a storefront where you decide the trucks you want to feature. A shopping cart and checkout is included that calculates the tax and shipping charges. You can list your trucks on an auction site but space is sometimes limited. There are places to set up your own website that gives you total control. Some sites charge a small fee to list your products, but because many of them already have an established audience, it is a good choice. The more exposure the trucks receive the faster they will sell.

Truck buyers and sellers save money by using the web. Sellers have little overhead, so they can sell trucks cheaper online. Buyers can browse at their leisure without traveling from lot to lot. Those who will not buy without personally looking and test driving the truck can narrow their choice down to a few. Online sales will be more successful by establishing a good reputation. Be honest about everything listed. Take pictures that show the truck as it really is and list any major flaws. Your listing is only one among many, so make sure the price you list is fair.

Make certain your contact information is accurate and easy to locate. Eliminating unnecessary e-mails or phone calls to establish the true condition of the truck will quickly put you on the favorite list of many repeat buyers. Word of mouth advertising is still the best or worst there is and is the one thing that has not changed.

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Lifestyle Trucker News

How to Transport a Car Cross Country

If you are in the middle of moving across the country, getting all of your belongings to your new homestead can seem overwhelming. You will most likely invest in a moving truck for all of your belongings. After investing in the truck, the only other obstacle in the way of your successful move is figuring out how to get your car cross-country. Luckily, you have a few options when it comes to transporting a car.
1

Find a car-shipping company and hire them to transport your vehicle cross-country. Car-shipping companies transport vehicles on freight trains or on tractor-trailers. Your decision may change based on where you are moving to, so you should explore both long-haul options. Movecars.com has a large directory of car-shipping companies across the United States.
2

Clean out your car before you ship it because you’re leaving it in the hands of others. Though you most likely will have insurance on the transport, don’t leave any valuables in the car that could get stolen.
3

Take your car to the shipping company and find out the drop-off point. Take down all of the shipper’s information, including where your car is being dropped off and who you can contact if there is any trouble.

Driving Your Car Cross-Country

1

Another option for transporting your car cross-country is to drive it yourself. Plan your drive so you can plot places to stop, what routes to take and how long the trip will take.
2

Bring someone with you. Not only will having a companion add to the fun factor, it will keep you from getting worn out. Driving endless hours across the country can tire mentally and physically, so it is good to have someone else along to help you drive.
3

Practice proper car maintenance on your drive. One of the worst things that could happen on your cross-country transport of your car is for it to break down. To help ward off unforeseen breakdowns, check your oil level, tire pressure and other fluid levels when you stop for gas.