Tax deductions on truck purchase

I'm no CPA - but I thought it was the interest portion of the note - and then you select whatever depreciation cycle on the truck that suits you.

 

The simple answer is if you finance the truck the interest on the note is deductible and you will use the purchase price for your depreciation.

If you’re renting or doing some type of lease purchase then you can deduct your payments because you don’t own the truck to be able to depreciate it.

 

Depends on how your company is set up

If you have an LLC everything is a business expense (purchase, interest, maintenance) and can be written off all at once or depreciated over time

 

Find a good CPA. This is the wrong place to ask mostly because it tends to change state by state and at the whim of the federal government.
I depreciated 100% on my purchase the year I bought it. And I THINK that is the answer.

 

My truck doubled in value shortly after I bought it so there wasn't any depreciation to be had. I was able to deduct interest and under part 172?...I was able to deduct the whole purchase in the first year. You might look into your options available to you for your situation.

 

You can depreciate the entire truck, and it's not in even amounts thanks to President Trump.

If you do it smartly, you will take a HUGE chunk when you have a HUGE year.

Flip side, bad year, depreciate it a little.

 

This is a question for your accountant/tax preparer. And find a good one that knows the trucking business. I just did mine last week, expecting to pay a lot in taxes. Ended up owing none on state and very little for federal.

 

Gotta love the 179 Deduction!

 

Back when I had my own truck from what I remember. You Depreciate your truck over 3 or 4 years of you want. You could also do all in One year if you wanted like other person said if you had huge tax bill. Your truck payment did not have anything to do with truck Depreciation. Unless you were leasing a truck or renting one then that the business expenses.

If you sold your truck and already took all the Depreciation then you had payback some of that money. Not many would have that problem but it something to thing to keep in mind if you had a new truck and Depreciated 100% the first year to avoid a hug tax bill. Then say you sold that two or three year old truck you would have to pay taxes back on that truck.

 

Solid advise. I learned the hard way with my first venture. An accountant that specializes in transportation is imperative. The difference in your filings is thousands. I tripped over the signing cheques to lawyers and accountants thing for a few years and paid for it. This time I had the lawyer and accountant set up the company structure to start with, and point me in the right direction how to operate it. My legal and accounting costs have been minimal ever since, and I don’t get buried in tax liabilities every year.