Limited
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Cargo Master
Joined: Oct 2005
Posts: 2,866
Likes: 515
From: WNY
Buying a Limited or any luxury item is simple. Someone wants it for what it is, and is willing to pay for it, and a write off is secondary.
New User
Joined: Oct 2010
Posts: 12
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From: Alberta
Can’t believe anyone would pay 100k for a super duty. I paid about 67k with the warranty and swore I would never pay over 50 for any truck every again. It’s an asset that depreciates and I can’t make sense to do it again. Don’t get me wrong though it is a pleasure to drive on any occasion, just not worth the insane price tag. I assume most of you guys purchasing platinums/limiteds are using it for taxes...
Postmaster
Joined: Jan 2019
Posts: 3,422
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I just picked up a 19 Platinum. The reason I went with the Platinum is that I drive lots of miles and the Platinum has a better resale value in Canada compared to Lariats. Also the time I loaded up a Lariat, there was only a 3K difference to move into the Platinum. I am self employed so my company purchased the truck. If it wasn't for my company purchasing the truck and the miles I drive I would never have got the Platinum!
Logistics Pro
Joined: Mar 2019
Posts: 4,064
Likes: 13
Im self employed but don't make much annually, so my decision was based on what I wanted and could realistically afford (not a Limited), the bonus is, it will also be a write off to an extent. My understanding, or the way I look at write offs is, lowering your taxable income to pay less tax, beyond that I dont know the smartest way to do that. My tax guy has told me that I need more write offs haha.
Logistics Pro
Joined: Mar 2019
Posts: 4,064
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I imagine it starts making more sense the more one makes, like hundreds of thousands. Then there is more of a tax advantage to the spending.
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Joined: Aug 2019
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Cargo Master
Joined: Oct 2005
Posts: 2,866
Likes: 515
From: WNY
I’m no accountant, but here are the basics that I have learned from my accountant over the years.
Tax write offs are basically everything your company spends to do business that cuts into total profit. Employees, insurance, equipment, upkeep etc. The final profit number determines your tax bracket. You can write off a vehicle to bring down your profit by claiming the expense, but it isn’t a complete write off as some assume, and not a good reason to buy a new Limited. Sounds like a great excuse to buy a nice truck, but it really isn’t unless you can prove the mileage is completely business related.
If you write off a vehicle to your business and use it for personal transportation which 99% of us do, the IRS will still assess tax for the amount of personal use percentage that you must file, and charge it back as personal income. They have every angle figured out...
Not a very useful write off IMO. Usually, it’s better to buy it personally with no write off and claim a deduction for business mileage.
Rarely does someone use a company vehicle as 100% company, and the IRS knows that.
Tax write offs are basically everything your company spends to do business that cuts into total profit. Employees, insurance, equipment, upkeep etc. The final profit number determines your tax bracket. You can write off a vehicle to bring down your profit by claiming the expense, but it isn’t a complete write off as some assume, and not a good reason to buy a new Limited. Sounds like a great excuse to buy a nice truck, but it really isn’t unless you can prove the mileage is completely business related.
If you write off a vehicle to your business and use it for personal transportation which 99% of us do, the IRS will still assess tax for the amount of personal use percentage that you must file, and charge it back as personal income. They have every angle figured out...
Not a very useful write off IMO. Usually, it’s better to buy it personally with no write off and claim a deduction for business mileage.
Rarely does someone use a company vehicle as 100% company, and the IRS knows that.
Hotshot
Joined: Mar 2017
Posts: 10,150
Likes: 1,369
From: Chaz
You can do 100% write off now on a HD truck. Limited or XL. They changed the rules (Trump).
As said above you may not use it 100% business but you can still do it.
Generally honesty works best and if you need the write off that bad you’ll be using it 100% because you are busy.
But on the flip side you can say write it off 80% one year and 20% the next. Like you had a good year. That only works if you have another vehicle.
They do have it figured out and it works for you or against you depending on politics.
I have this truck for work otherwise I would have something else. I’m not an accountant but work in construction.
As said above you may not use it 100% business but you can still do it.
Generally honesty works best and if you need the write off that bad you’ll be using it 100% because you are busy.
But on the flip side you can say write it off 80% one year and 20% the next. Like you had a good year. That only works if you have another vehicle.
They do have it figured out and it works for you or against you depending on politics.
I have this truck for work otherwise I would have something else. I’m not an accountant but work in construction.
Logistics Pro
Joined: Mar 2019
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Not to take away from Trump, but section 179, that allows for 100% write off in the first year put into use, has been around since before he was in office. Although the limits may have increased, not too sure.
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Cargo Master
Joined: Oct 2005
Posts: 2,866
Likes: 515
From: WNY
Someone more knowledgeable please chime in.
Section 179.
It all depends on ones tax needs.
True, you can apply Section 179 to your taxes and potentially write the whole truck purchase off in a single year, but you still need to own the truck for 5 years. You can't take 5 years worth of expense deduction at once, then turn around and sell it. I am not sure how the tax math would work in a trade other than the credit taken would be then applied to the nex purchases deduction as money still owed to the IRS. If you sold it and were audited, you would be responsible for all of the tax written off plus interest/penalty. You would still be personally taxed for the personal use each proceeding year.
Since you may have expensed the truck out in the first year, that leaves you with four more years with nothing to claim.
Hotshot
Joined: Mar 2017
Posts: 10,150
Likes: 1,369
From: Chaz
They removed the cap. When I said super duty I should have said vehicle over $50k. You can do 100% expense the first year as well now.
If you buy it for 70k write it off then sell it for 60k the following year; you will have a 60k gain that year.
If you buy it for 70k write it off then sell it for 60k the following year; you will have a 60k gain that year.
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Cargo Master
Joined: Oct 2005
Posts: 2,866
Likes: 515
From: WNY
Sounds about right Joe.
Well, we are all here for the reward, which is a new truck. The tax thing will be my accountants call on whether I buy it personal or through the business. I’m keeping my GMC as personal, so the Ford mileage can be mostly written off to the business if we go that way.
Well, we are all here for the reward, which is a new truck. The tax thing will be my accountants call on whether I buy it personal or through the business. I’m keeping my GMC as personal, so the Ford mileage can be mostly written off to the business if we go that way.
Hotshot
Joined: Mar 2017
Posts: 10,150
Likes: 1,369
From: Chaz
I have a personal F150 that gets mileage deduction and super duty owned by the business and its easier to just write off the purchase on it.
Otherwise it gets too hectic and that can lead to problems.
Otherwise it gets too hectic and that can lead to problems.