The Trucking Industry & Passenger Vehicles
(Plus vehicle tax preparation checklist)

"The big rigs keep the economy rolling"

The information on this page and on the "vehicle tax preparation checklist" attached would answer ALL your questions in 5 minutes. Call us if you are convinced that we are the right fit for you.

Our Transportation Clients

We prepare tax returns for Owners of Trucks, Passenger vehicles, and Tire Shops. They have been our clients for 5 to 22 years. Most of them send us their information by Fax, UPS, FedEx, and Post Office. They are:

1) Taxi & Limousine companies (Uber, Unter, Lyft, Juno, Communicar, Green Cab, Yellow Cab, etc.)

2) Private yellow buses companies (Owner-operator)

3) Trucking companies (Owner-operators, NY, NJ, CT, GA, PA, FL, TX, CA, NC)

4) OTR's for Mayflower, Land Star, Old Dominion, Transport America, Metropolitan, Heartland, Stevens, Arnold, Pace, Golden Drop, Schneider, JB Hunt, Maffucci, Bekins, and Food-Lion (NY, NJ, CT, GA, PA, FL, TX, CA, NC)

5) Workers of the New York City Transit Authority (Bus and Train drivers and Rail lines workers)

6) Railroad workers for Metro-North and CSX

How We Obtain Transportation Clients

The internet search engines, Speaking & Writing, Outsourcing Companies; and having our marketing representatives hand out flyers, business cards, and gift packages at trade shows, truck stops, dispatch terminals, taxi & limousine bases, etc.

What We Want From You

1) Your Cell Phone number and E-mail address for quick communication.

2) A paper copy of the last tax return you filed.

3) Your Business Gross or Total Income for the year; or Forms 1099.

4) An analysis of your business expenses for the year. If you are a owner operator we would add your DOT daily per diem for incidental expenses.

5) Your Credit Card or Bank Account Information to pay for the service.

Transportation Education
* Travel Institute, New York (Air, Road, Rail, & Sea)
* Brooke Transportation Training Solutions, Texas (Trucking)
* M.S. Taxation
* Insurance Broker (property & casualty)

Hands-On Experience
Taxation; Insurance; logistics & compliance issues; Revenue Acceleration; Project, Risk, Supply Chain & Warehouse Management; Cost Accounting (cost segregation, activity-based costing, transfer pricing, absorption pricing, etc.); and business restructuring and Freight Auditing Service for truckers.

Testimony

"The information you have given us is invaluable. We have leased a fleet of trucks and the leasing company has encouraged us to retain your services."
    - Allan & Tom, Shippers & Movers, Randall Ave., Bronx, New York

"I am an OD/OO. I am on the road and could hardly find time to go to a tax office and get my taxes done. I send my information to Barry and he gets the job done. The results have been better than I had expected. It has been this way for 15-years. Great guy!!"
    - Jerome Jenkings, Clear Water, Florida

Types of Haulers

Specific trucks are used after customers individual transportation needs are identified (TL & LTL & 3rd Party): Local (short haulers), Intermediate, Long (freighters/double tankers), Hazard Material (haz-mat), Reefer (Refrigerated trucks); Ice Road Truckers (delivery over frozen lakes), Automobile Transporters, Flat Bed (short, intermediate, or long haulers); Oilfield truckers; Private Sanitation Truckers; etc.

People in various industries would refer to the trucking industry by different names, such as inland freight, interstate commerce, or inland marine. The cars we drive are brought to the dealers by trucks. Heavy equipment (tractors, bulldozers, cranes, etc.) to build roads, buildings and highways are brought to the construction site by trucks. The items that we purchase at the supermarkets and neighborhood shops are transported there by trucks. This includes lumber and hardware materials; and pipes used in the transportation of petroleum, water, and natural gas. In some states trucking companies are the biggest employers. Fuel price and fuel surcharge do have an effect on the industry. However, the industry will continue to dominate freight movement and the national economy as more fuel efficient trucks are being manufactured annually. There were over 110 million REGISTERED trucks including 1.87 million REGISTERED tractor trailers on the road in 2009, according to the Federal Highway Administration (FHA) statistics.

Insurance Coverage

When my clients ask me how much insurance coverage I would consider adequate to cover their exposure, I often tell them to look at their net worth on their business or personal financial statements because that is what is at risk in the event they incur a catastrophic loss, including the verdict from possible lawsuits. The coverages I recommend are auto liability, physical damage, motor truck cargo, trailer interchange/drop lot, general liability, excess auto liability/umbrella, worker's compensation, occupational accident & health (OA&H), and pollution coverage.

Auto Liability Coverage
Auto liability coverage is an important coverage. The number of trucks a client has, the radius of operation of those trucks, the type of cargo the trucks haul, the client's loss history (loss experience) and the client's safety and control inspection must be revealed to the insurance broker and the underwriter. They would pull the client's record(s) from the Safety and Fitness Electronic Records system (SAFER). The records are maintained by the Federal Motor Carrier Safety Administration (FMCSA). The information there contains the results of inspections performed on the client's vehicles at the weigh stations by law enforcement, including the U.S. Department of Transportation (USDOT). These out-of-service reports disclose how often a client's truck has been taken off the road and the reason for the client's action. If a broker discovers a large claim during the search, s/he will get the specifics from the client and write a narrative explaining to the underwriters what has happened. If the underwriter feels the explanation has merit and the claim can be settled for less than the amount reserved for losses, then that will have an influence on his/her decision and the client will pay a lower premium.

Physical Damage Coverage
Physical damage coverage is written on an actual-cash-value basis. A list of the value of the client's equipment and trucks are added together. Also, the MVRs of drivers are pulled from the DMV and driver safety procedures and past claims are reviewed. A company should hire the best drivers. Drivers can become a trucking or shipping company's most valuable asset or its worst nightmare/enemy. Drivers complicity can include providing information to hijackers even when they are aware that the trucks are tracked by a GPS system, diversion of cargo to other truckers while it sits overnight in the terminal or parked trailer, parking their loaded trucks at unsecured locations, and neglecting to lock the tractor at truck stops. Dispatchers should keep track of drivers. One company has managed to reduce driver retention rate and increase operations efficiency by hiring more experienced drivers with a history of job stability. They went from hiring 128 drivers down to 117 drivers, and they are hauling the same amount of freight. Another company claimed it saved $169,000 in administrative costs while increasing its business over 25%.

Motor Truck Cargo Coverage
A broker and an underwriter will be concerned about the type of freight a client hauls and whether the cargo will be escorted by a security service. Security services are familiar with the neighborhoods through which the trucks must pass enroute to their destinations. They can map out safety routes for the drivers and evaluate the height of the clearance under the overpasses. The freight on board is valued at the invoice amount. It is valued at cash or market price on the date and at the place of shipment if it is not shipped under invoice. Cargo is covered when it is in-transit. The coverage ends when it arrives at the destination and it is transferred to the consignee or its authorized agent. A trucker who hauls refrigerated cargo needs coverage for losses/spoilage during the breakdown or malfunction of the refrigeration equipment. Cargo may be damaged by water, lost, or damaged during handling, it may suffer elements of contamination, theft, pilferage, and other perils. The most commonly stolen goods are food products, clothing, electronics, pharmaceuticals, liquors, baby formulae, and scrap metals because of the high prices those metals attract on the world markets. This information is also cited in the reports published by the Inland Marine Underwriters Association (IMUA) and the International Cargo Security Council (ICSC).

Trailer Interchange/Drop Lots
Drop lots are essentially transfer points. A long-hauler may leave a trailer on a drop lot where it will be picked up by a short-hauler, who takes it to the final destination. Drop lots are breeding grounds for thieves and driver complicity.

Pollution Insurance
Truckers are encouraged to buy pollution insurance whether or not they haul hazardous freight (haz-mat). Pollution is an exclusion under the auto liability policy. This coverage is relatively inexpensive for haulers who are not involved with haz-mat.

E-mail Received

"What is the typical cost range including operating costs for a new or used tractor/trailer, and what's the average life span?"

Answer
Depending on the make and model, a new long haul, "High-End" tractor (with sleeping area) can cost $120K to $140K. The finance company would give you up to 5-yrs to pay off the balance of the loan. The tractor can run for up to 1 million miles before the engine is due for rebuild. Depending on the model, a new air ride trailer can cost between $25K-50K and the financing company will give you up to 3-years to pay off the balance of the loan. You may be required to repay the finance company about $20K to $25K annually for a new tractor & trailer. Fuel can cost you about $65K (20K gals) depending on your route and how long your truck runs. Group Insurance $10K; maintenance $5K-15K annually, for a new or used the tractor & trailer. Front tires $1,000 each and rear tires $400 each. The life span can run up to 5-years before major repairs are needed. It depends upon the kind of operations that you are involved with (trade cycle, warranty and depreciation schedule) and the annual mileage that you are covering. Everything must be factored into the kind and scope of your maintenance schedule.

Steven Transportation replaces its fleet continuously. You may be able to purchase high quality pre-owned trucks from that company. If you want to buy new trucks and trailers, your best bet is to attend the Mid-America Truck show, the Mid-West Truck show, or the Great American Trucking Show in Dallas, TX; and don't be afraid to ask questions. Those shows offer everything that you can think about in the trucking/transportation industry.

E-mail Received

"I am a class "A" OTR with haz-mat and tank endorsements. I have been working for companies for 13 years. I am starting my company as an O/O and I will be soliciting freight from Brokers whom I have built a relationship with over the years. I am offered a pre-owned, well-maintained 18-wheeler, 2005 Ken worth T-2000 with 400,000 miles. The truck cost $62,500, 9.5%, five years. Trailer $25,500, 6%, three years. I plan to be on the road for nine months a year. Diesel 5.8 ml's/gal.; tolls, registration, etc., $3,500. How much load do I have to haul to be able to break even in the first year?"
— E. McAllister, Walnut, CA. (June 2009)

Answer
Owner-operator wants to know the value of the freight that his truck must carry to cover operations cost in the first year of operation.
Click to view the cost chart (opens as a .PDF).