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How do you claim your truck?

Discussion in 'Business Fundamentals' started by cumminswithplow, Jan 2, 2005.

  1. cumminswithplow

    cumminswithplow Senior Member
    Messages: 129

    Whats the best way to deduct your truck on your taxes. If you take mileage the you aren't being fair to yourself when you push snow. Depreciate it out over time. And take actual expense? Any ideas would help.
    Last edited: Jan 3, 2005
  2. salopez

    salopez Senior Member
    Messages: 873

    depends on how your bus. is set up and how much taxes you are paying. plus helps if your truck is titled over 6k lbs. you can right the whole thing off in one year now, but you need the sales to benifit for this. i am going to write mine off over 3-4 years, same with plow and salter as capital expenses. that way i can benifit for longer with lower annual sales.
  3. plowman350

    plowman350 Senior Member
    Messages: 125

    mileage vs. actual expenses

    There are 2 methods of calculating deductions for truck usage.

    Method 1: usage: Total vehicle expenses for the entire year (car wash, oil change, repairs, gas, etc). Take this total and multiply it by the % of miles which were actually used for business.

    Method 2: Mileage: Take your actual miles which were used for business purposes and multiply it by 36.5 cents. There's your deduction.

    Under IRS rules you may also depreciate your vehicle over a period of up to 7 years. You cannot depreciate it if you are using method 2 because that per-mile number includes depreciation, method 1 does not.

    Finally, in the year you purchase the vehicle, you may deduct a large portion (even up to 100%) depending on your particular vehicle, purchase date, actual use (only 50% if it is also a personal vehicle), and other factors which your CPA will know. I talked to my CPA Monday about my new truck, he informed me that the rules changed for people who bought their truck after October of 2004. If you bought it before then, your deduction will be larger. If after October, you still get a nice deduction, but not AS nice.
    Hope this helps.
  4. ratlover

    ratlover PlowSite.com Addict
    from IL
    Messages: 1,325

    a accelerated depreciation over 5 years. wrote the plow off 100% for the first year. I'm only writing off a percent of my truck based on what I use if for for personal and what I use it for for buisness.
  5. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    It will also depend on your State laws. For instance, in Maine, I can only use the depreciation method. If you use two trucks for business, it's considered a "fleet" and you can not deduct mileage. You must keep track of mileage and fuel receipts, though, to show percentage of mileage attributed to business.

    Always use a professional tax preparer. They can save you money, besides keeping you out of trouble with the IRS.
  6. Mower For Less

    Mower For Less Senior Member
    Messages: 108

    Go with the actual expenses method. Standard Mileage deductions may seem easier, but you will end up cheating yourself. Unless you have a very fuel efficient and small car, which is cheap to insure, and cheap to maintain, and you drive over 40,000-50,000 miles per year. If you cant meet ALL of those criteria, (Which Im pretty sure your plow truck wont :) ) Then deduct actual expenses.

  7. dlcs

    dlcs 2000 Club Member
    Messages: 2,142

    Talk to your accountant. If you don't have one get one.
  8. cumminswithplow

    cumminswithplow Senior Member
    Messages: 129

    I meet with the accountant in the morning. Thanks for the ideas.
  9. 1BadHawk

    1BadHawk Member
    Messages: 68

    Just out of curiosity, if your truck contains advertisement, cant it be considered "in business use" at all times wether or not your actually plowing or using it for official business.
  10. cumminswithplow

    cumminswithplow Senior Member
    Messages: 129

    My truck doesnt contain advertising. But, if what you say is correct, then it wil contain it soon. Does anyone know the answer to this?
  11. plowman777

    plowman777 Senior Member
    Messages: 227

    just having a sign does not make it business use., this is common sense.