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HAS0586
03-20-2009, 10:16 AM
How do I deduct gasoline used for my equipment? I do not see anywhere were I might put it on my 1040 form. Any help appreciated!

razor1
03-20-2009, 10:36 AM
Do you have an actual business or are you just working on the side?

Proc's Lawncare
03-20-2009, 11:06 AM
Ya if your a licensed business you will need to file long form and take your deductions, we've used turbo tax and "edited in" the fuel cost expense... Very easy to do, hope this helps!

Drew Gemma
03-20-2009, 03:04 PM
you can also braek that down and also get a credit for all gas used off road.

Fvstringpicker
03-20-2009, 04:41 PM
On schedule C, just list it as a separate item under "Other expenses" in part V and carry the amount over, with other "other expenses" to line 27.

HAS0586
03-20-2009, 05:25 PM
Do you have an actual business or are you just working on the side?

I was doing it part-time last year but am now going full time. But I was registered with the county and have my DBA and EIN.

On schedule C, just list it as a separate item under "Other expenses" in part V and carry the amount over, with other "other expenses" to line 27.

I thought that would be the way but wanted to make sure.

you can also braek that down and also get a credit for all gas used off road.

I have heard about the credit. Can I deduct the cost of the fuel and get the credit at the same time?

Appreciate the help guys!

- Hunter

dougaustreim
03-20-2009, 05:41 PM
You get both the deduction and the credit for the federal tax paid for off road use, but that credit will be considered income for this next year.

HAS0586
03-20-2009, 07:46 PM
You get both the deduction and the credit for the federal tax paid for off road use, but that credit will be considered income for this next year.

Awesome! Thanks.

- Hunter

Fvstringpicker
03-20-2009, 10:47 PM
Be extremely careful with the fuel tax credit thing. Since fraudulent claims is on the list of scams that the IRS is watching for, it is wise to be absolutely sure you have sufficient documentation to support your claim. You must have documentation and contemporaneous records supporting your claim that clearly establishes the the dates, names/addresses of vendors, the purposes for which you used the fuel, and the number of gallons used. Penalties alone can run as high as $5 grand.

DLCS
03-21-2009, 01:27 AM
Ok ,So like for us who buy our diesel fuel at the truck stop and we only use diesel in the ztrs, We have no trucks that use diesel. How do we document that to get the Federal fuel tax credit on the diesel? How do we prove that we only used the diesel off road. How should we document that?

bohiaa
03-21-2009, 10:35 AM
It's hard to tell if your "OFF RAOD" or not, the fuel in your Equipment, is 100%
or get AG fuel

LB1234
03-22-2009, 12:33 PM
Not that this helps much but were I fill up and place diesel in the machines (the ones we rent so I don't do it often) they ask if its for off road use. I look at him and say that I don't plan on tacking the mini-x on the highway today. They apparently take some of the tax off the bill..or rather don't charge it.

AI Inc
03-22-2009, 12:35 PM
Ok ,So like for us who buy our diesel fuel at the truck stop and we only use diesel in the ztrs, We have no trucks that use diesel. How do we document that to get the Federal fuel tax credit on the diesel? How do we prove that we only used the diesel off road. How should we document that?

Buy from an oil company with an off road pump. Most oil companies have one.

dougaustreim
03-22-2009, 03:31 PM
Diesel is usually handled differently than gasoline. Gasoline you pay tax when you buy it, and then request refunds. Diesel is either dyed or undyed. The dyed is sold without tax and cannot be placed in a licensed vehicle for on road use. Even a tiny bit in the tank can be detected if your inspected. Also remember work within a highway right of way is not off road regardless of what you are actually doing. For instance mowing road ditches, seeding on highway constrcution projects etc are on road uses

Fvstringpicker
03-22-2009, 04:18 PM
Also remember work within a highway right of way is not off road regardless of what you are actually doing. For instance mowing road ditches, seeding on highway constrcution projects etc are on road uses

A absolutely excellent point and that will behoove folks to remember.