Several tax provisions that affect trucking will change as of January 1. Meals bought by or for truck drivers who are away from home for business long enough to require sleep or rest will become 80% deductible, compared to 75% in 2006-07 and to 50% for most other business meals. The limit on wages or self-employment income that is subject to social security taxes will climb to $102,000 from $97,500 in 2007. The cap on the amount of new equipment that can be expensed, or immediately deducted, will rise to $128,000 from $125,000 in 2007.
At press time, Congress still had not passed a bill to extend three dozen provisions that were due to expire at the end of 2007. The most important of these would provide relief from the alternative minimum tax for millions of middle-income taxpayers. As a result of the delay, many tax forms, publications and software that are traditionally ready in early January will need to be revised.