2005 Ford Truck

I am starting my own investment business and I need to buy a work truck. What are the tax advantages? Can I buy a truck and write off the price? What should I do>>???

Comments(8)

  • joecrane29th April, 2005

    You will depreciate the cost over what the IRS considers the life of the vehicle. Say, for instance, that you pay 30,000 for the vehicle and it has a life of seven years. You would deduct $4285.71 (30,000 divided by 7 years) from your taxes each year for seven years.

  • NewKidinTown230th April, 2005

    Just curious. What kind of investment business requires a "work truck", rather than a business owned vehicle such as a car?

  • blueford3rd May, 2005

    You can also take accelerated depreciation if business use is > 50%.

    There are also annual limits on vehicle depreciation based on type of vehicle and when it was placed in service. Some of the larger trucks are not subject to the depreciation caps. Might look at IRS publ 946 on depreciation.

  • dontaskwhy10th May, 2005

    If you purchase a business vehicle, how is milage handled? Is that part of the depreciation? Can you deduct repairs/gas?

  • joecrane10th May, 2005

    If memory severs correctly, you take depreciation plus one of the two options:

    1) Take a set amount for the amount of miles you drive. The IRS sets the amount.

    2) Deduct all expenses such as gas and repairs.

    The IRS recommends that you keep track of both of the two above and use whichever one will deduct more.

  • MadMarc10th May, 2005

    if the auto is in the name of an llc can one then write off the whole amount? or does will it still need to be depreciated? and how is the situation different if the auto is leased???

  • Eric510th May, 2005

    Im studying to be a CPA i think joecrane is right

  • Eric510th May, 2005

    if the vehicle is leased you can just write that off as a business expense. There are also situations where you would make it a capital lease and in effect it would look like an installment purchase I believe.

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