Truck as a tax write-off/business expense
 

Can anyone share with me a link to the tax code that talks about trucks over a certain GVW as a full tax write-off for business?

I cannot remember the specifics of the law.

Mahalo! :)

I couldn't sleep and found my own answer...

Here it is in case you've been wondering too.

"You can get more advantageous auto tax breaks by purchasing certain vehicles. New or used "heavy" SUVs, pickups and vans used more than 50 percent for business qualify for the extra-generous $100,000 Section 179 allowance. "Heavy" is defined as a vehicle with a gross vehicle weight rating above 6,000 pounds. You'll find the rating on a label on the inside edge of the driver's side door. So when you buy a heavy vehicle for business, you can probably write the whole thing off in the first year, subject to certain rules. "

Jeez, try to help the farmers and Monsta jumps all over it :-X14

I love America!!!

I'd like to caution people about jumping on this "gift". Make sure you actually have a business and that your insurance company is covering the vehicle for business use. Keep track of all mileage- both business and 'personal'. Finally, consult your tax advisor to make sure this is really a good deal for your company. :)

I drive mine to work... that should count right? ;)

NoMo,
Very good advice. If your business is a sole proprietorship or a LLC (Limited Liability Corp. --a type of partnership structure), and you could be one of the limited partners then you do not neccesarily have to insure the vechicle in the business name.

The most important point is to keep records of business use. Get in a habit of writing down business use everyday (I use my appointment book/calender). Also keep good records of the expenses you incur in your business vechicle. Keep receipts if the expense is over $25. That includes, gas, maintanence costs, taxes, insurance premiums, and towing expenses (if you don't have a Ford).

I've yet to see a business person that did not benefit from this deduction (although I am sure someone wouldn't benefit). Many pundits think Congress will close this deduction soon.

P/S driving to work and driving to and from your office/shop is not considered business use.

Just trying to get some clarity here...

If a sole proprietorship, do you likewise mean that the vehicle does not need to have commercial license plates to accompany the vehicle being covered by insurance for business purposes.

I may not put the insurance in the business name, but believe the insurance company needs to cover it for business purposes.

Is this correct, or can I simply put this on my auto policy as personal.

Also, if the insurance company is covering for business purposes, does this dictate that I need commercial plates?

I live in NJ and do handyman work on the side for which I use the truck for 50% of the time.

Thank you

dmnj,
My guess (since I do not work with NJ clients).
You can have your personal ins. policy endorsed to cover incidental business use. They would charge a higher premium, but it would be deductible.
Not sure about the commercial tag as GA does not have commercial tags. Check with the County tag office or ask other business owners.
I would look to IRS rules and regs. They will not worry about local laws. They are only concerned with federal tax laws. You must have a legitamate business (with a profit motive) and keep good records.
You will file a 1040 with schedule C. You can deduct business espenses of the truck use by 'per mile' or 'actual expenses'. Actual expenses is usually the better method. Call 1-800-829-3676 for forms and instruction booklets (it's free). You would also write off tools and equipment used by your business. Please note that you should use your vechicle for business 51% of the time.

Thanks!

dmnj,
I'm in NYC and have a sole proprietorship. I use my truck to travel to & from car shows (which I would go to anyway) and have been writing it off sucessfully for two years. According to my tax pro, as a sole you don't need to have the truck in the business name, I know I don't but GEICO did ask if I use it for business. No commercial plates are required in NY. I claim everything including beer when I use the truck for business.
Good Luck