how should i buy my truck?

[Fred]

Been in business a long time so I have a CPA. You can deduct your truck as a business expense, you are the following. I only use my truck for business never personal. I use my truck for advertising everywhere I go. So everywhere I go I am advertising. No matter where you go your advertising so its a write off... Now also since your truck related you go on a Raptor run, this is a business expense. It is more advertising... You own a business, is it a corporation? Most likely not and your DBA (doing business as) then you can buy the truck personally and its still doing business as....

Wrong...
1)you do not need to use the vehicle 100% business to take the deduction...
2)you would prorate personal and business based on mileage.. Form 4562...
3)If you use the vehicle less than 50% business than cannot use MACRS depreciation but must use 5 year straight line method... If the vehicle is NOT used more than 50% business no sec. 179
4)Commuting miles are always not deductible and count toward personal mileage in your business use calculation
5)Buy and lease the vehicle back to your business...
6) The 6ft bed is there so you can take $25K the first year, if does not meet this test can take $11.16K first year

Instructions for Form 4562 (2011)
Publication 334 (2011), Tax Guide for Small Business

 

[krww06]

FWIW, since the GVWR is over 6,000 lbs. you can deduct the entire cost of the truck in the first year. A Section 179 deduction isn't even necessary to achieve this. The 100% deduction is written in the tax code for vehicles meeting this GVWR number.

As others have said, be sure and consult with your tax advisor, as it may or may not be advisable to take a full deduction based on your income. You also shouldn't take the 100% deduction if you don't intend to keep the truck for quite some time (i.e. If you take the 100% deduction and sell it for anything more than "$0" then you get to experience depreciation recapture on the difference between $0 and the sales price and pay the taxes on that).

FWIW, I like the idea of buying a vehicle in a company name, so long as you have another vehicle that is personally owned (which is a requirement).

 

[Sid77]

From the IRS web site. Seems pretty cut and dry to me.
Short bed F-150s don't typically qualify for the full deduction.

You cannot elect to expense more than $25,000 of the cost of any heavy sport utility vehicle (SUV) and certain other vehicles placed in service during the tax year. This rule applies to any 4-wheeled vehicle primarily designed or used to carry passengers over public streets, roads, or highways, that is rated at more than 6,000 pounds gross vehicle weight and not more than 14,000 pounds gross vehicle weight. However, the $25,000 limit does not apply to any vehicle:

Designed to seat more than nine passengers behind the driver's seat,
Equipped with a cargo area (either open or enclosed by a cap) of at least six feet in interior length that is not readily accessible from the passenger compartment, or
That has an integral enclosure fully enclosing the driver compartment and load carrying device, does not have seating rearward of the driver's seat, and has no body section protruding more than 30 inches ahead of the leading edge of the windshield.

 

[Icecobra]

Wrong...
1)you do not need to use the vehicle 100% business to take the deduction...
2)you would prorate personal and business based on mileage.. Form 4562...
3)If you use the vehicle less than 50% business than cannot use MACRS depreciation but must use 5 year straight line method... If the vehicle is NOT used more than 50% business no sec. 179
4)Commuting miles are always not deductible and count toward personal mileage in your business use calculation
5)Buy and lease the vehicle back to your business...
6) The 6ft bed is there so you can take $25K the first year, if does not meet this test can take $11.16K first year

Instructions for Form 4562 (2011)
Publication 334 (2011), Tax Guide for Small Business

I am right your looking at what I said as a question, it was not a question it was a statement of fact.... Use the truck as a business deduction dont let some smart assed accountant tell you, you tell them " I only use it for work!"... Then I am 100% right and approach it that way....

 

[Fred]

I am right your looking at what I said as a question, it was not a question it was a statement of fact.... Use the truck as a business deduction dont let some smart assed accountant tell you, you tell them " I only use it for work!"... Then I am 100% right and approach it that way....

Yes you can do whatever you want...just be prepared to back it up if you are examined...

Depending on your business writing off a "Raptor Run" seems risky, especially if you are a Lawyer...

But it is not a smart assed Accountant you need to convince it is the taxing authorities...

Bottom line: facts and circumstances...

Just saw your business is Truck related so again fact and circumstances

 

[ManleyORV]

I'm just going to shut up and sign my taxes April 15th, no more tax or legal threads for me

Leave it to the pros... just contact your CPA!

 

[Madcowranch]

Obama gon get me a raptor!

 

[The Car Stereo Company]

i am going to do as fred suggested and lease to my company. thanks fred, you finally posted something worthwhile...... hahaha

 

[Fred]

i am going to do as fred suggested and lease to my company. thanks fred, you finally posted something worthwhile...... hahaha

Thanks Busa...glad I could finally help you out...

---------- Post added at 08:42 AM ---------- Previous post was at 08:38 AM ----------

Posting financial help is hard...since facts vary from person to person, plus the tax law is going to change and they have changed the vehicle depreciation, or what is called "Hummer Loophole"...


Just remember "pigs get fat and hogs get slaughtered..."

 

[Wilson]

good info