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Commercial vehicle discount?????

Discussion in 'Commercial Snow Removal' started by ScottyB., Jan 21, 2003.

  1. ScottyB.

    ScottyB. Member
    Messages: 55

    Here's something I thought I saw on this site and now I just heard something about it on the radio.

    From what I understand, if I were to buy a 1 ton truck (say an F350 crewcab) it would be considered a commercial vehicle and therefore tax deductible. Is this true? If so, to what extent is it deductible? Any accountant types out there? Would it have to be used for a business or since it's a commercial weight vehicle even personal use applies.

    If there's a loophole out there I'd like to know more about it.


    To plow or to get plowed, that is the question.
  2. Mr_Roboto

    Mr_Roboto Member
    Messages: 63

    I'm not an accountant. A commercial type truck for personal use cannot be written off.(or at least should not). The deduction for a business vehicle is to offset profits from a business. I can deduct my vehicle costs from my profit because it is used for my business.
  3. cat320

    cat320 2000 Club Member
    Messages: 2,224

    It's only commercial if thats the way you register it. A car can be commercial too.You could get a half ton and be commercial.
  4. ScottyB.

    ScottyB. Member
    Messages: 55

    Thanks for the replies,
    I'm aware of the deductions for business use vehicles, whether it be a bicycle or a truck. The way they explained it on the radio, this deduction is based on the fact that it is a truck that was manufactured as a commercial vehicle, based on the GVW. I will let you know if I learn anymore.
  5. CPSS

    CPSS Senior Member
    Messages: 334

    Ther are some comnercial vehicle discounts offered by dealers. If the vehicle is sold to a business the dealer is able to apply a small discount. Ford had one a while back where we saved $500 simply because we purchased it as a business, not personally.:drinkup:
  6. sonjaab

    sonjaab PlowSite.com Addict
    Messages: 1,425

    NOTE GM also offers commercial customers discounts
    on most vehicles and also pays for specialty upfitts
    ie: work racks, plows,etc... The program changes tho.
    Check out www.chevrolet.com/csv/support/choice
    I think thats the link.... Or call GM CSV group
    at 1-800-759-5550...8-6 mon-fri..........geo

    GM also has a mobility plus program in which they pay
    for wheelchair ramps, lifts, etc..................

    Ford and Mopar also offer some commercial deals too !
  7. greenquestlawn

    greenquestlawn Senior Member
    Messages: 157

    If you walk into a dealer do not grab the first sales man you see, ask for some one in the commercial leasing or sales department. Normally you will get a better price. I know at my dealer thats how it works.
  8. wyldman

    wyldman Member
    Messages: 3,265

    Where we buy all our trucks,they have a fleet manager.We deal with him exclusivly.You need a fleet number to buy like that though.Must have at least 10 registered commercial vehicles to obtain a fleet number.Then you just give them the number and you get the vehicle at cost + $150.00,or something close to that.No haggling.

    If you lease,it's a 100% writeoff.If you buy it you can only write off a portion,plus depreciation,plus interest.If you use the truck for personal use too,you cannot writeoff the percentage that you use for personal use.
  9. CMerLand

    CMerLand Senior Member
    Messages: 173


    I know exactly what you are talking about but am not knowledgeable enough to explain the circumstances to you about it. What he is referring to is a giant tax loophole that was intended for farmers to write off the trucks, but with the new heavier SUVS and trucks out there, people are able to take a giant tax deduction for the purchase of the vehicle.

    Scotty is right that the vehicle must have a certain GVW but it allows a huge first year writeoff of business expenses vs straight line depreciation which only gives you a few thousand dollars of depreciation. And its a HUGE deduction, something like 50% of the purchase price. Talk to your accountant about it and if they are worth their money he should be able to find out the details for you.

    Of course, now that this loophole is being exploited by Yuppies in their SUVs the government is looking to find a way to close it, which of course will only come back to haunt us.

    Best of luck

  10. ScottyB.

    ScottyB. Member
    Messages: 55

    Thanks CMerrick,

    That is exactly what I was talking about. I don't think my current accountant is very good at finding things like this, but I am shopping around for someone who will. Someone who doesn't charge an arm and a leg for my reasonably simple tax situation.

    I will post back here if I find something concrete.
  11. seville009

    seville009 Senior Member
    from CNY
    Messages: 877

    There're limitations on the amount that you can deduct for depreciation each year for "luxury autos". The rules apply to vehicles not classified as "commercial".

    All things being equal, the guy who paid $40,000 for a vehicle classified as "commercial" can write off his cost quicker than the buy who paid $40,000 for a vehicle that does not have the "commercial" classification.

    In the end, 100% can be written off (assuming 100% business use), so it's just a timing issue - more deduction quicker, so taxes saved quicker.
  12. ScottyB.

    ScottyB. Member
    Messages: 55


    This site is a virtual fountain of useful (and useless) knowledge!!

    I think my membership paid for itself in just this one thread.
    You guys did have to pay a membership fee, right???

  13. oakhill2000

    oakhill2000 Member
    Messages: 98


    Membership Fee? I hope you didn't pay a membership Fee, I didn't
  14. wyldman

    wyldman Member
    Messages: 3,265

    Re: ?!?!?!?!?

    You haven't paid your membership yet ? Just mail me the cheque and I'll take care of it for ya ! ;)
  15. oakhill2000

    oakhill2000 Member
    Messages: 98

    I bet you would take care of it for me. I was just kidding cause I can't believe he did if he is seriouse!
  16. drobson

    drobson Senior Member
    Messages: 112

    Scotty I know exactly what your talk about also. I heard it on the radio yesterday; however, I don't think that it has passed yet. They said the George Dubbya was trying to pass this to allow some large SUV's that are within specs to be commercial vehicles to use a special tax deduction. There are some people opposing this stating that the new law would encourage people to buy more vehicles that use more fuel.

    Of course after typing this I realize that if he is trying to get large SUV's to be able to use the same tax deduction, then it must exist for commercial vehicles now. I don't know exactly what the tax break law is, but If I find out I will post it.
  17. drobson

    drobson Senior Member
    Messages: 112

    Ok, after a little research here is what I have found out.

    It appears that section 179 of the IRS code allows a certain amount of a piece of machinery or vehicle to be deducted immediately without having to depreciate it. Besides raising the amount from 20k to 25k this year, they want to include some heavy SUV's that have a GVW of over 6,000lbs. This would allow a lot of small businesses to deduct the entire cost of some vehicles the year they purchased them instead of doing a depreciation.

    Like I said in the last post, I believe that I heard on the radio that the part about allowing SUV's into this IRS code is still pending.
  18. hoagie

    hoagie Member
    Messages: 64

    The key words here are BUSINESS EXPENSE.

    Any Joe Shmoe cannot take the deduction just because they buy a new truck. It has to be used for business, and you better have documentation to prove it.

    There was another recent thread on this... I believe the ammount you can deduct in the first year is $24,000. This applies to ANY depreciable equipment used in your business.
  19. drobson

    drobson Senior Member
    Messages: 112

    Of course you would not be able to deduct it unless you are filling out your schedule C or similar tax forms, so I can't see there being too much confusion on trying to deduct the family SUV if you don't own a business. But even a vehicle registered personally (non commercial plate) can be deducted for business if it's used for business purposes for a percentage of the time.

    Some people that use a vehicle for dual purposes must register it with passenger plates because with commercial plates they would be restricted where they could drive the vehicle. And if it's used for personal 50% and business 50% that would create a problem. Of course if you want 100% deductions then it would have to be registered commercially.
  20. ScottyB.

    ScottyB. Member
    Messages: 55

    If I was a serious person, do you think I'd be hanging out on this board? Not to mention living in WI and praying for snow. Right there-That tells you I'm not serious. In fact now that you made me say it-I must be crazy.
    Thats it I'm buying an F350 and deducting it (for business purposes) and plowing my way to Arizona.