Can I Buy a Truck in the Business.....

[Chris "Greenville"]

Can I buy a truck that I already own in the businesses name from myself and write it off on taxes or do I need to go that far? Can I just designate it as business only and then right off the payments or depreciate? Last year I just claimed mileage. Am I right that any equipment bought in 2008 is 100% write off on this years taxes to go along with the economic stimulus for small business? A lot of questions I know but I'm trying to decide if I can go full time and when to commit to buying better equipment. Thanks ahead of your comments, Chris

[cpel2004]

The best advice I can give you is check with your accountant or CPA.

[Runner]

Are you a sole proprietorship or incorporate? You can sell it to the corp., but not as a sole proprietorship. I know one guy who owns his trucks, and leases them to the corp.. I think there is someone on here that does that, as well, or he owns another company that leases the he trucks to the company.

[Chris "Greenville"]

I'm a sole proprietor. I was thinking that I might be able to Buy the truck from myself with a business loan and write it off as a business expense instead of adding on another truck. Then I also might gain the full cost off the writeoff on 08' taxes. Am I on the right track? Thanks for the fast commments.... Chris

[THEGOLDPRO]

my trucks are in my name not the business and i am able to write them off as a business expense.

[Chris "Greenville"]

THEGOLDPRO,
Do you write off the payments on the trucks and depriciate? And If I did this in the 08' season could I write off 100% on this years taxes? Chris

[tjc47]

If you sell the truck you will have to claim the income on your taxes anyway. A sole prop is a flow through entity. The income that you make on your business flows through to your personal income. Either way it is a wash. To make it easier, track the mileage you use for your business and write off that percentage on your taxes. You can do this for gas as well. Hope this helps.

[THEGOLDPRO]

basically we made a list of all our equipment trucks,mowers,trailers,tools,ect ANYTHING we could and do use for the business had it apraised (roghly) and wrote it off. i also keep track of fuel,miliage on trucks, repairs everything that pertains to the business and hand it over to the accountant for writeoffs.

[hoyboy]

you cannot use appraised value to depreciate an asset....only actual purchase price.
also, the section 179 deduction you are referring to is only good for newly purchased equipment...that tax year...not equipment you already own.

[kleankutslawn]

good info here