Truck Deductions Experience

#1

I’ve been getting ready for taxes. Also planning for next year.

Any advice on truck deductions and usage?

Here is what I have, Honda Ridgeline 2 wheel drive GVW 5780lbs. I know the magic number is 6000lbs. The AWD version is 6017 lbs.

So far It would be my personal and business vehicle and the majority of it would be personal. I would hopefully be using it more next year. I started in November this year.

Main Question I guess is do I get a truck to get over the 6000lb mark or just keep what I have. If I’m going to trade up it needs to be soon. I’m at 90.000 miles.

I’m looking for those that have wrestled this out already.

Help me Obiwan Kenobi’s You’re my only hope (before going to an accountant).

#2

An Accountant would be a good idea - Advice you get from this message board is questionable at best.
You are a sole proprietor? you get to deduct mileage used in your business at the mileage rate for this year. You need to be a company to own a vehicle and expense the entire thing.

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#3

90000 miles ain’t that much for a Honda. If you’re just starting out keep it as dual use and deduct the mileage come tax time. If you upgrade you not only have the expense of the vehicle but insurance might be higher and it is business use only. When the business gets rolling you can upgrade (the vehicle will need to be in the business name). JMHO

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#4

So isn’t an LLC a business?

#5

Get a new vehicle and use this one for business only. It does not have to be in the business name. Easy to keep track of mileage when it is a “dedicated” vehicle. Jan 1 and Dec 31 mileage is all you need.

#6

I deduct miles only and count all other vehicle related expenditures as non deductible company expenses.

On another note, I do have a CPA that does all my taxes.

#7

Good to see you back posting again Steve, I hope all is well with you my friend.

I gotta say, I miss the upside-down elephant. :smiley:

#8

Hell Kevin, after finishing Netflix, two house remodels, and a new barn build, I needed to see if things had changed. They haven’t. Hope all is well.

#9

All is well, thanks, although for some reason unbeknownst to me, it seems most of our friends from the other side of the political spectrum have gone radio silent. LOL

And as they say, silence is golden. :+1:

#10

dude, you finished all of netflix? that’s some serious binge watching.:man_facepalming:t2:

#11

Larry, when I filled out the appointment sheet, I would add Google mileage to and from the job, each time I went e.g. radon, and add it to my spread sheet with the total going to my accountant at year end.

I kept track of my chart of accounts for book keeping and sent totals via printout to my accountant at years end, with other things.

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#12

What does the 6000lb mean? I have always just used mileage. The IRS is pretty generous, in my opinion, with the mileage rate. At least with low gas prices anyway. But I am not familiar with how the 6000lb weight plays into everything.

#13

Thanks larry, I’m mainly wondering if it would be worth it to get a truck that is over 6000 lbs for the tax break

Sincerely,
Larry Moore

…Play Skillfully…
God

#14

I know nothing of the 6,000 pound tax break for vehicles…sorry.

I just bought what I wanted to drive and used the IRS mileage deduction, Larry.

#15

there is a pretty generous deduction for “heavy “ trucks used more than 50% for business. it’s article 179 in the tax code. I saw it on one of the internachi tax videos. You are able to claim a hearty amount of your vehicle cost as a depreciation. I don’t fully understand it, That’s why I’m asking on here.

Sincerely,
Larry Moore

…Play Skillfully…
God

#16

It is better to ask your accountant, Larry. :smile:

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#17

Mile IQ. It tracks your mileage for the jobs, and you can enter the type of service. At the end of the year you print the report and it separates work mileage from personal mileage.

#18

I use TripLog which does mileage, arrival time and departure, and differentiates between several options. Much like MileIQ.

#19

Sec. 179 allows for depreciation. In 2014, my last truck purchase, if the truck was over 6,000 lbs and had a bed at least 6’ you could fully depreciate it in the first year. That’s why I decided on the double cab vs crew cab. 6.5’ bed vs 5.5’ bed.
Not up to date on current version of 179 though.

#20

Nice, David! :smile: