Moving Companies, CPA & Tax Services

Why Moving Companies in Dallas Need a CPA Who Knows the Industry

Moving companies deal with tax situations that most general CPAs handle poorly: fleet depreciation schedules that shift every time you buy or sell a truck, seasonal labor that creates payroll tax headaches from May through September, DOT compliance costs that need proper categorization, and damage claims reserves that the IRS scrutinizes closely. Get any of these wrong and you either overpay on taxes or trigger an audit.

At AG Freideman, we work with Dallas-Fort Worth moving company owners who are tired of explaining their business model to a CPA every tax season. Al Freideman has over 30 years of experience handling complex business returns, including the fleet-heavy, labor-intensive operations that define the moving industry. We handle your books, your payroll, your tax returns, and your Texas compliance so you can focus on scheduling moves and managing crews.

How Should Moving Companies Handle Truck Fleet Depreciation?

Fleet depreciation is the single largest tax deduction most moving companies leave money on. The IRS allows multiple depreciation methods for commercial vehicles over 6,000 pounds GVWR, and choosing the wrong one can cost you tens of thousands of dollars in missed deductions over the life of your fleet.

For 2026, Section 179 allows businesses to deduct up to $1,220,000 in qualifying equipment purchases in the year they are placed in service, with a phase-out threshold beginning at $3,050,000 in total purchases. A 26-foot box truck that costs $65,000 could potentially be deducted in full the year you buy it, rather than spreading that deduction across five or six years using standard MACRS depreciation. Bonus depreciation remains available in 2026 at 20% for qualifying assets, down from previous years, making Section 179 elections even more important for moving companies adding trucks this year.

The depreciation decision also affects your buy-versus-lease analysis. Leasing a truck means deducting the full lease payment as a business expense each month, which simplifies your books but may result in lower total deductions compared to purchasing with aggressive depreciation. We run both scenarios for every fleet decision our clients face, comparing the five-year tax impact of ownership versus leasing based on your actual revenue and tax bracket.

• Section 179 expensing for trucks, trailers, dollies, and loading equipment placed in service during 2026
• MACRS depreciation schedules properly tracked for each vehicle in your fleet, including disposal and trade-in adjustments
• Buy vs. lease modeling with real tax projections based on your current income and filing status
• Accurate basis tracking when you sell, trade, or retire vehicles, so you report gains and losses correctly

What DOT Compliance Costs Can Moving Companies Deduct?

Every dollar you spend on DOT compliance is deductible, but most moving company owners lump these costs into vague categories like “operating expenses” instead of tracking them properly. That lack of detail makes it harder to defend deductions during an audit and easier to miss expenses entirely.

Texas moving companies operating intrastate must register with the Texas Department of Motor Vehicles and maintain current USDOT numbers. Interstate movers need FMCSA operating authority. The registration fees, annual renewals, drug and alcohol testing programs for CDL drivers, hours-of-service compliance software, and vehicle inspection costs are all fully deductible business expenses. So are the insurance premiums that DOT regulations require: cargo liability insurance, general liability, and commercial auto coverage.

We categorize every DOT-related expense separately in your books so your return clearly documents these deductions. If the IRS ever asks why your insurance costs seem high, the documentation is already organized by type and purpose.

How Do Claims Reserves Work for Tax Purposes?

Damage claims are an unavoidable part of the moving business, and how you account for them affects both your tax liability and your financial statements. The IRS has specific rules about when you can deduct claims costs, and getting this wrong is a common audit trigger for moving companies.

Here is the key rule: under cash-basis accounting (which most small moving companies use), you can only deduct a damage claim payment in the year you actually pay it, not when the claim is filed. If a customer files a claim in November 2026 but you settle and pay in February 2027, that deduction belongs on your 2027 return. Deducting it early is a red flag the IRS catches during matching.

For accrual-basis companies, the rules are different. You can deduct an estimated liability when all events establishing the liability have occurred and the amount can be reasonably determined. We help you choose the right accounting method for your situation and maintain proper documentation for every open claim, including written estimates, settlement agreements, and payment records.

Managing Seasonal Labor and Payroll Tax Compliance

Moving companies in Dallas-Fort Worth experience dramatic seasonal swings. Summer months (May through September) often require double or triple the crew size compared to winter. That seasonal hiring creates payroll tax obligations that catch many owners off guard.

Every worker you hire, even for a single weekend, requires proper classification. The IRS has increased enforcement of worker misclassification, and moving companies are a frequent target because the industry historically uses day laborers and independent contractors. If you control when your crew works, provide the truck and equipment, and direct how the work is performed, those workers are employees under IRS guidelines, regardless of what your contract says. Misclassifying employees as 1099 contractors exposes you to back payroll taxes, penalties of up to 100% of the unpaid amount, and interest.

We handle monthly payroll processing for moving companies at $300 to $600 per month, including proper tax withholding, quarterly 941 filings, annual W-2 preparation, and Texas Workforce Commission reporting. When you ramp up hiring in spring, we scale your payroll seamlessly so every worker is properly classified and every tax deposit hits on time.

Moving Company Tax Mistakes We Fix

After 30 years of preparing business returns, Al has seen the same costly errors show up repeatedly in moving company financials. Here are the ones we correct most often:

• Depreciating trucks already eligible for full Section 179 expensing. Many CPAs default to five-year MACRS schedules without evaluating whether immediate expensing would save the owner more in the current tax year.
• Misclassifying seasonal movers as independent contractors. If you provide the truck, the equipment, and the route, those workers are employees. We have cleaned up years of back payroll taxes for owners who got bad advice on this.
• Failing to track per-vehicle expenses for fleet profitability. Without vehicle-level cost tracking (fuel, maintenance, insurance, depreciation), you cannot identify which trucks are profitable and which are draining your margins.
• Missing the Texas franchise tax no-tax-due threshold. Texas businesses with annualized total revenue at or below $2.47 million owe no franchise tax, but you still must file the Public Information Report by May 15 each year. Missing this deadline triggers penalties even when no tax is owed.
• Deducting damage claim reserves before payment. Cash-basis taxpayers cannot deduct claims until settlement checks are actually issued. We see this error on nearly every moving company return we take over from a prior preparer.

What Moving Company Tax Services Cost at AG Freideman

We publish our pricing because moving company owners deserve to know what they are paying before they commit. No surprises, no hidden fees.

• S-Corp or Partnership tax returns (Form 1120S or 1065 with K-1 preparation): $1,000 to $2,000
• Sole proprietor returns (Schedule C with business income and expenses): $750 to $1,200
• Monthly bookkeeping and payroll (bank reconciliation and payroll processing): $300 to $600 per month
• Texas franchise tax and Public Information Report: $250 to $500
• Texas LLC formation: $350 plus $300 state filing fee to the Secretary of State
• Registered agent services: $149 per year, included free with any tax or bookkeeping engagement

Most of our moving company clients bundle bookkeeping, payroll, and annual tax preparation into one engagement so their books feed directly into their return with no gaps and no scrambling at tax time.

Ready to talk about your moving company’s tax situation? Call Al Freideman directly at (972) 893-3481 or book your free consultation at agfreideman.com/meeting/. We serve moving companies across Dallas, Plano, Frisco, Allen, McKinney, Richardson, and the entire DFW metro area, with virtual appointments available for owners who are always on the road.