Trucks, Tools, & Depreciation, Oh My!
What trade businesses should track for assets for taxes in 2026
You started your business because you're great at what you do.
Not because you wanted to memorize tax rules.
But when tax season rolls around, the biggest deductions almost always come from the biggest purchases. Trucks. Tools. Equipment. Materials. The stuff you rely on every day.
If it’s tracked right in your books, your CPA can work faster and find more savings. If it’s not, things get messy. And stressful. And slower than they need to be.
So let’s keep it simple.
Trucks & service vehicles
Most businesses deduct vehicles one of two ways:
Mileage
Actual costs
Actual costs can include fuel, insurance, repairs, registration fees, loan interest, and depreciation.
Even if you plan to deduct the actual costs, you still need a mileage log. It proves the truck was used for business, not weekend Home Depot runs. There are plenty of apps you can use to track this, or simply keep a little black book in your glove box and record starting & ending miles on the odometer along with date and reason for the drive.
In QuickBooks Online, trucks you own or finance should be added to your Fixed Assets list. Your CPA calculates the depreciation and your bookkeeper can put it in your books. You handle the tracking.
Tools & equipment
This is where trade businesses shine for deductions. Some common examples:
Work trailers
Lifts, ladders, scaffolding
Mowers, skid steers, landscaping gear
Compressors, generators, shop equipment
Welders, specialty machines
Large tool or gear purchases
These often qualify for faster write-offs like Section 179 or bonus depreciation.
If you toss these into Uncategorized Expenses, your profit report looks smaller than it should. And it makes your tax pro dig for details you already know.
Give them a clean asset list instead. Your CPA will thank you.
A quick record-keeping checklist
Before you send anything to your CPA, pull this together:
Receipts for big purchases
Mileage log for service vehicles
Asset list with costs + dates
Tools and equipment recorded to Fixed Assets
Loan/interest statements if something was financed
That’s it. Nothing fancy. Just honest, organized, accurate.
Common slip-ups I see all the time
Expensing trucks when mileage is being deducted
No mileage log
Equipment costing well over $2,500 expensed instead of in Fixed Assets
None of these mean game over. They just mean extra work later. And nobody wants extra work during tax season.
The bottom line
Your books should match the work you actually did and the purchases you actually made.
Clean books don’t just make taxes easier. They protect your business if questions ever pop up. They help your CPA advise you better. And they give you profit reports you can finally trust.
You earned the deductions. Your books should show it.
Reach out if you have any questions Natasha@3LakesBookkeeping.com