Section 179, Bonus Depreciation, and S-Corp Election for Dump Truck Owners

Published June 9, 2026·Last reviewed June 9, 2026·11 min read
Short answer

Section 179 lets you deduct the full cost of a used dump truck in year one (up to $1.16M). S-corp election saves 8–12% in payroll taxes once you clear ~$60k net. Both require an actual CPA — not TurboTax.

Taxes are where solo operators leave the most money on the table. Two decisions — depreciation method and entity election — can shift $10k–$20k a year.

Section 179 in one paragraph

Buy a used dump truck for $65,000 in 2026, deduct the full $65,000 against your business income the same year. Limit is $1.16M in Section 179 deductions for 2026, phased out above $2.89M in purchases. Bonus depreciation covers what Section 179 doesn't (60% in 2026, phasing down).

When to elect S-corp

  1. Wait until net profit clears ~$60k/year — below that, the payroll admin eats the savings
  2. File Form 2553 by March 15 to elect S-corp status for the tax year
  3. Pay yourself a 'reasonable salary' (~$45k–$65k for a working owner-operator), take the rest as distributions
  4. Distributions skip the 15.3% self-employment tax — that's the whole game

Per diem for on-the-road days

$80/day meals & incidentals for 2026 for transportation workers, 80% deductible. If you're on the road 200 days, that's $12,800 in deductions with zero receipts required.

Hire a trucking CPA

This is not a TurboTax situation. A real trucking CPA runs $1,200–$2,500/year and will save you 5–10x that. Ask your insurance agent for a referral.

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Working owner-operators, trucking CPAs, and construction estimators who review every article before it publishes. We update pricing and compliance numbers every quarter.

12+ years combined hauling, GC subcontracting, and small-fleet operations experience.

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