Can I deduct 100% of truck cost in one year?

[michael13]

My accountant is trying to tell me that I can only deduct 40% of the total cost of my vehicle while my buddies are saying you can deduct 100% as long as I keep the vehicle for 5 years, who is right. What deduction rate applies for equipment ie mowers, trailers, etc.?

[jkranium]

The answer is it depends. If your vehicle does meet certain requirements you can use the section 179 deduction, which allows you to deduct the full amount. Ask your accountant about it, there is probably a reason why he said what he said. By the way that deduction also applies to equipment

[Kickin Your Grass]

3/4 ton and up you can deduct 100%

[Fvstringpicker]

You only deduct the % of business use and Section 179 (election to expense) applies only if the vehicle is used greater than 50% for business. Check with me is you need more info.

[sgallaher]

I'm not big on understanding the tax stuff, that's why i use an acountant. I would go with his advice. You can always call a couple other acountants and see what they say. I don't have a profssional degree so i listen to the experts. But I would rather spread that amount over several years to get a break over a longer time. Plus what if you get rid of the truck for whatever reason? (accident, theft, trade-in, etc)

[desert rose gardening]

I was able to write off my atv in full for my Christmas tree ranch 2 years ago, and I plan on writing off my new used truck $4,400.00 this year. I don't like that deprecation over a few years option, I want a big break now! If you sell your truck you will have to pay tax on the money you made on it.

[Jason Rose]

My accountant always gives the me the option of taking depreciation over 3 to 5 years or taking a larger percentage than that. Whatever it takes to keep what I owe in down... Of course that's a catch 22, because if you don't but equipment the following year, and you took all your depreciation already, you are just going to owe even more.

If the truck/equipment is 100% business use, I think you can take it all in one year, unless the laws have changed. And there's no regulation as to how long you must own said item either. I had bought an ATV with a plow about 4 years ago, took 100% deduction for it and then ended up selling it later that spring. Of course I may not have told the accountant or government I sold it... (cause I would have had to pay gains tax on it then)