Is there a tax deduction for purchasing a new truck in 2006?
I was told that because I own my own business which involves me using my vehaicle that there is a tax deduction for buying a new 2007 GMC 4 door truck, I hadn’t heard this until a person said it.
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August 27th, 2010 at 10:16 am
Vehicle expenses for business use are deductible. Since this is an expensive vehicle, you may consider taking actual expenses and depreciating the cost of this vehicle. The depreciation may result in a higher deduction in the first year of business use.
Once you start taking actual expenses, you must continue to take actual expenses as long as you have the vehicle. You will not be allowed to take the mileage deduction instead.
August 27th, 2010 at 10:50 am
The business use portion of your truck could be considered as a depreciable asset in your business. If you go that route, though, you’ll need to figure out your actual auto expenses (gas, oil changes, tires, etc.) instead of using the standard mileage deduction. The standard mileage deduction already includes depreciation in the calculation, so you can’t depreciate the truck and take the standard mileage. If you drive the car primarily for business, I would think you’d be better off using actual expenses, but my experience has been that most business owners hate the record keeping involved.
August 27th, 2010 at 11:00 am
When you have a business you can deduct because the truck is a business expense that is remove from total income made by your company.Example: If your business made $100,000 last year and your truck cost $20,000.You can only be taxed on $80,000.Because went you bought the truck you paid state tax on it.