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What constitutes a "Fleet"?

Discussion in 'Business Fundamentals' started by Mick, Jan 2, 2006.

  1. Mick

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

    Another thread got me to thinking about this. The answer is (as with everything else) - It depends. As this may affect how you file taxes, it's really more than a superflous question. It depends mainly on where you live.

    Maine - I found out, after I bought my second truck, that two trucks constitute a fleet. I forget which since I use a tax preparer, but the tax law stipulates which accounting methods you can use for expenses. Saying I had a "fleet" doesn't seem to mean much, except maybe to my ego.
     
  2. mrplowdude

    mrplowdude Senior Member
    Messages: 315

    2 or more is definetly a fleet. With two trucks and one owner your taxes would be different because one of the trucks is more liokely to be used as a personal vehicle also and 1 truck as a company truck.
     
  3. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 27,967

    Now I just posted this in a different thread, but I have some to add to it as well.

    In order to have a "fleet", do you need the trucks to be all named with the same company name, or can you just put a bunch of trucks together, with no company names on them, and say "here is my fleet"??

    If the latter is the case, then I'll get all of my buddies together, all of whom have plows, take a great big picture of 20 plow trucks, even though we all have our own accounts / deals that we plow, and average out how much I pay for my truck for costs / insurance, multiply it by 20, and WHA-LA!!! I've got a full blown FLEET!
    - posted in "Plowing Laws".

    I've got a 2003 and a 2005 Dodge Ram 2500, CTD, 4x4, both white, both quad cabs, both decked out EXACTLY the same, except the backup (2003) I've put stainless steel nurf bars on it, because my dad uses it once in a while to run parts for me.

    Both have Boss plows, and except for the nerf bars, you'd have no idea which truck I was in. Both have the company name on the side window of the rear door.

    I don't really consider myself a fleet, with only 2, but I also wouldn't consider myself a fleet with 10 trucks if 3 were 1/2 ton Fords, 2 were 3/4 ton GMC's, 1 brown and 2 green, 2 were Dodge's and a random Chevy and or Toyota / Nissan thrown in.

    For me, a fleet would be 5+, all decked out in "company" insignia / colors. At LEAST lettered the same.

    Mick - As far as your "fleet" law in Maine, can you follow up sometime if you find out there's any other tax detriments / incentives for classifying yourself as a "fleet"???
     
  4. Mick

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

    Seems like more of a detriment, actually. I tried looking up the tax laws, but couldn't figure them out. I just know that my options are more limited because it's a fleet.
     
  5. mrplowdude

    mrplowdude Senior Member
    Messages: 315

    it should help you by considering the business owns it you can write off 100% the truck and truck related items.
    When I had 1 truck my accountant would try to figure how much personal use there was and we could only thake the business %.
     
  6. Mick

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

    xxxxxxxxxx

    Misread Mrplowdude's post and gave a "right answer to another question". (The new PC way a teacher tells a kid they're wrong.)
     
    Last edited: Jan 2, 2006