Quote:
Originally Posted by no_worries
You can depreciate a highway tractor out as long as you like. The minimum depreciation period is 3 years. Straight-line using the half-year convention is the simplest method. Divide the purchase price by 3 to get your annual depreciation. In 2006 you get a half-year's depreciation. 2007 and 2008 you get a full year's worth and 2009 you get the final half-year.
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This is incorrect! Gman is correct! A highway tractor can only be depreciated for a period of 3 years. The first year, you can, but not normally recommended, take the depreciation of the entire purchase price, if you have adequate tax deficit to justify this.
For accurate and authoritative advice for truck drivers, go to the following websites:
http://www.attrucktax.com/ or
http://masterthejourney.terapad.com/
Also, if you have XM Radio - check out Kevin Rutherfords show on XM 171, info below, XM Radio is 100% deductible on your taxes.
ATBS Trucking Business and Beyond with Kevin Rutherford
New time begins Mon, 10/8 | Daily | Midnight-1AM ET
Weekends | 4-7PM ET
Here's the number to call the studio during the show 303-302-1234
Call in with questions (303-302-1234) for our industry expert guests who can help both owner-operators and company drivers improve their bottom line.
This is going to probably be your best source for trucking tax and business information.