Truck Depreciation
 

Sorry to bother all you guys (and gals) but I have a question and thought you guys could point me towards the fascinating tax publication I have to read to get the answer for it.

Up until 2008 we where leasing our truck. In 2008 we started the buy out option on the lease and we did the buy out all but the last payment in 2008. Now I want to depreciate the truck as much as I can for the 2008 tax season.

Of course the instructions for IRS forum 4562 does not really go into types of depreciation or if I can just expense it under section 179.. called the IRS to try to figure this out.... but they "disconnected" me after I was on hold for 15 minutes after I asked my question and the dude was trying to figure out the answer. However the IRS people on average only know what they are talking about when you call in about 40% of the time with specific questions (so I am a real pain to them)

My actual question to them was

"does the truck qualify for the section 179. Because we placed it in our service in 2003, However from '03 to the beginning of '08 it was a lease and we did not buy it till '08, so does it qualify for 179 because that section if for things purchased in the current tax year."

Yes I know it would be easier for me just to get a trucking accountant but they usually do not know anything about farming and since we do both plus some in out business taxes are always fun for me.... I have nightmares about them from Jan to March.

So my question to you all is what do I read to figure out how to depreciate the most I can of the truck for the 2008 tax year?

Sorry this was so long I just tend to babble sometimes... but only online never in RL hehehe

Deborah

Hi Deborah,

I sent you a PM regarding your questions.

If I had a question that involved 179 depreciation on equipment..... The last place in the world I would go, is an internet message board on the www to ask a tax question ..... If it were me, a phone call would be made to the licensed CPA who handles my taxes. Just a thought....:thumbsup:

Thank you for your help :) I beleive that was the information I was looking for :clap:

Well finding a licensed CPA that knows as much as I do about trucking and farming taxes for a partnership is very hard to find... They usually specialize in one or the other. And through in the partnership... Nope I do not think there is such a CPA anywhere like that.

Besides I asked for information on the IRS doc I would have to read... I am not just taking things at face value... furthermore by what I have read on this forum most these guys seem to know what they are talking about and I think I might trust them more then a stiff in a suit hehehe

But thanks for the suggestion. :lol:

:rofl::rofl::rofl::rofl:

Thanks for the chuckle !!!

Big Diesel, I don't know what the problem is , I get all my tax advice from internet message boards, and so did the guy in the cell next to me.

You are welcome :clap:

Can You Imagine???
 

C.P.A.'s even have messages boards and toss around accounting application theories/pratices . Whodathunk? :roll2::roll::roll3:;)

SteveBooth learned everything about how to run a business on a internet message board. Look how well he has done !!!! :lol::lol::lol:

Do you ever drive or work ???? Or are you one of those who are playing big rig driver.

And before you reply in an expected manner, I am now out of the truck and in the office. So I get to play on here all day !!!!:thumbsup:

and these questions you pose have what relevance to the posted topic? Unless you are asking about depreciating your truck at a decelerated rate because of limited use. I believe you may petition the IRS and request such.

Let's try this again.... Do you actually drive 18 wheeler for swift, or are you one of those internet wannabe pretend big rig driver ???

Yes, I drive an 18 wheeler for Swift. I still don't see what the relevance to this topic that has, but then that is some what your style.

When ???

If you really don't drive for swift. it is no biggie....

As for relevance.... anyone who has half a mind for biz, will always contact their CPA for any tax related query's, rather than asking it on an open forum in cyberspace. :thumbsup:

Do you actually think you're a comedian, or are you one of those internet wannabe's pretending to be?

Don't forget to tip your c.o.c.k.tail server and bartenders !!!!

Ask Mike Hawk, I don't drink.

It is my understanding that you can deduct 100% of the lease payment. When you buy it out you can depreciate it out based upon the IRS depreciation schedule. A friend of mine has a CPA in Oklahoma do his taxes. He specializes in small carriers and owner operators. I would see if I could find someone such as this guy to help you. If you need his phone number I would see if I can get it for you.

Thanks Gman. I'm just trying to figure out where to look for this info... You know with all those IRS pub. it is a lot to read when You are looking for one thing....

:)

Thanks again

Check instructions for form 4562. That should give you what you need to know.

LOL, it gives me part... but you know all these instructions are geared towards things with only 4 wheels... lol... I think I found what I wanted. About vehicles over 6000 lbs GVW under section 179 the year bought you can expense $25,000 then depreciate the rest, starting that same year. So I think I'm good. Thanks

:thumbsup:

I think you are wrong, that is for company vehicles, (cars, SUVs, Pickups)I believe big trucks can be deducted 100% up to $106,000, take what you want then depreciate the rest over 3 years. Consult a professional, the money you save will be your own.

Well the trucks buy out was under 20k and we did most of it in '08 so I think I am good :) is the a publication that actually talks about big rigs? Ever year I go nuts trying to remember where to find the meal allows and % to deduct every year... I think that is in pub 463... I wonder if they are going to have that one updated online before Feb....

Thank you all for your guidance :)

For a couple of years you could deduct 100% of the purchase price in the year it was purchased up to a certain amount of money. I believe it was something like $200,000. It might have been less. It was a plan Bush initiated to help stimulate the economy. I don't think it was available last year but you may want to check if you need the deduction. If not, then I would use the regular schedule.

Not sure if this link will help, but I stumbled upon it while looking at new trucks and it seems somewhat along the lines of what you're looking for. Good Luck! :)

International Truck and Engine Corporation

Thank you that was it :) I am one happy person now :) well we will see once I am done with taxes...lol