[lowrange]

Originally Posted by Rev.Vassago

FIRE THIS TAX PREPARER. You can only depreciate a vehicle for what you paid for it. You can not write off "vehicle usage" on a CMV. If you do so, then you cannot claim other expenses for that vehicle (like fuel, repairs, etc.). That would be double dipping, and would get you in a boatload of trouble. A truck gets depreciated, plain and simple.

This person sounds like she has no clue as to how a trucking business works.

She doesn't, that's why I like her.




:lol:

[lowrange]

Originally Posted by Rev.Vassago

Of course, but for those years that you are depreciating, you have the ability to pay minimal taxes. Once that depreciation is complete, however, the gravy train has left the building.

Rev; sees no other alternative than to buy a brand new truck every 3 years, and throw the old one away. :wink:

:idea:



:shock:

[Rev.Vassago]

Originally Posted by lowrange

:idea:



:shock:

Better yet, I'll form an S-corp, sell the truck to myself for $1, then give it to a charitable organization every 3 years. Then I can double dip on the writeoff!

[lowrange]

Originally Posted by Rev.Vassago

Better yet, I'll form an S-corp, sell the truck to myself for $1, then give it to a charitable organization every 3 years. Then I can double dip on the writeoff!

Seems like it would be easier to sell it to someone for $5k who would be so grateful he'd sell YOU his late model car for the same...

oooo

[Rev.Vassago]

Originally Posted by lowrange

Seems like it would be easier to sell it to someone for $5k who would be so grateful he'd sell YOU his late model car for the same...

oooo

Yeah, but then I can only write off the $5K. Depreciating $5000 over 3 years seems pointless. I want to depreciate $100,000 or more over 3 years.

[lowrange]

Originally Posted by Rev.Vassago

Yeah, but then I can only write off the $5K. Depreciating $5000 over 3 years seems pointless. I want to depreciate $100,000 or more over 3 years.

I'm saying, after three years, you sell the $100,000 truck for
$5000. Capital gain of $5000 on a fully depreciated truck. There's going to be some capital gain, right? Even the scrap yard would give you something. Beauty is in the eye of the beholder and some guy would be so happy to buy it for $5000 he'd sell you, I don't know, a cottage on a lake for a bargain price!

[Rev.Vassago]

I gotcha. That would work too, except that property values suck right now. I'd want at least a penthouse apartment in NYC in trade for my truck. 8)

[lowrange]

One last one, Rev? I don't want to give this chick too long of a leash.

She says I can only write off half of that $52/day per diem. I thought it was more than that (2007). Which is it?

[Rev.Vassago]

Originally Posted by lowrange

One last one, Rev? I don't want to give this chick too long of a leash.

She says I can only write off half of that $52/day per diem. I thought it was more than that (2007). Which is it?

50% is what someone who is not subject to the HOS rules can write off. Last year, I think it was 75%, but don't quote me on that. It's in the IRS literature specifically as "individuals subject to Hours of Service".

[no_worries]

Of course, but for those years that you are depreciating, you have the ability to pay minimal taxes. Once that depreciation is complete, however, the gravy train has left the building.

Technically, depreciation should coincide with the usable life of the equipment, establishing a residual value at the end of the term. Most don't do this and simply depreciate it out because they'd rather have the immediate tax benefit now. They don't realize that when they go to sell, they give back much of that benefit.