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Originally Posted by mike3fan
.91cpm without figuring in depreciation on my truck(waiting for the CPA on this one,as I am not clear on how it works to tell the truth).
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Depreciation is tricky for several reasons.
First, the "government" method isn't the true method.
Second, we never really know what our truck is worth unless we trade it or sell it.
What I do, is take my payments at face value. For example, my payments were $1400 a month, and I was doing 10,000 miles a month. My truck cost was 14 CPM. I simply took it at face value for 3.5 years.
Now that it is paid off, my truck "depreciation" is zero, because I've taken my payments at face value the whole time. You could do the math, and figure that you're slowly passing your depreciation(but not in the first couple years) but that to me doesn't make sense.
I'm not talking about taxes here, just simply my own calculation of my truck cost.
Taking both the 14 CPM then somehow(I don't know how you would do it) adding depreciation, would be double dipping in a negative way. It wouldn't be true cost at all.
How much does it cost to run a truck?
