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Old 05-07-2003, 12:46 PM
scott's turf scott's turf is offline
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Multi vehicle write off question

Just bought a new truck for mostly personal use. I have a truck that is used 100% for business use and my question was with a second vehicle can I just do a mileage write off on my new one and actual cost on my business truck?
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Old 05-07-2003, 01:51 PM
bruces bruces is offline
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Re: Multi vehicle write off question

Quote:
Originally posted by scott's turf
Just bought a new truck for mostly personal use. I have a truck that is used 100% for business use and my question was with a second vehicle can I just do a mileage write off on my new one and actual cost on my business truck?
I believe so. The only limitation is that if you are using both trucks simultaenously for business, you can not use the mileage method. If you are using either one or the other, you should be ok.

The simultaneous use would come in to play if for example you have a crew out working in one truck and you are out doing sales in the other.

It does not mean you using one truck for work during the day and the other for estimates at night.

That would not be simultaenous use, and you could use mileage for one and actual for the other.
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Old 05-07-2003, 02:25 PM
Green in Idaho Green in Idaho is offline
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I'll second that.

For additional info on vehicles see IRS Pub 463 at

http://www.irs.gov/pub/irs-pdf/p463.pdf

My question would be on the 1st truck at 100%. Is it truly 100%.

If you just bought a 2nd truck did it replace a previous personal truck? Or is this the first time you have had two trucks, if so what did you use for personal use before getting the 2nd truck?


Mark
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Old 05-07-2003, 03:12 PM
scott's turf scott's turf is offline
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Here is my situation. I am a full time engineer and run this business on the side. My crew uses my F250 diesel all day and I drive my toyota p/u to work. I am replacing the toyota with a new truck. The diesel I write off 100% by actual cost because it only does about 10k mileage per year max and the repairs are usually more $$. I was thinking that I could keep my toyota insured and registered to make that look like my personal truck and then maybe write off 50% of the new truck.

So if I make $6000 in payments in one year, can I write off $3000 for business?

Mark I will take a look at that publication.
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Old 05-07-2003, 03:24 PM
scott's turf scott's turf is offline
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Here is my situation. I am a full time engineer and run this business on the side. My crew uses my F250 diesel all day and I drive my toyota p/u to work. I am replacing the toyota with a new truck. The diesel I write off 100% by actual cost because it only does about 10k mileage per year max and the repairs are usually more $$. I was thinking that I could keep my toyota insured and registered to make that look like my personal truck and then maybe write off 50% of the new truck.

So if I make $6000 in payments in one year, can I write off $3000 for business?

Mark I will take a look at that publication.
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Old 05-07-2003, 03:27 PM
scott's turf scott's turf is offline
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I took a look at the publication and found two things of interest. One is that I can not use the standard mileage deduction if you have two vehicles in use simutaneously, which will be the case for me. Second was whether an F250 is considered a car. It says that for it to be considered a car the GVW must be below 6000 lbs.
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Old 05-07-2003, 03:31 PM
bruces bruces is offline
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Quote:
Originally posted by scott's turf
Here is my situation. I am a full time engineer and run this business on the side. My crew uses my F250 diesel all day and I drive my toyota p/u to work. I am replacing the toyota with a new truck. The diesel I write off 100% by actual cost because it only does about 10k mileage per year max and the repairs are usually more $$. I was thinking that I could keep my toyota insured and registered to make that look like my personal truck and then maybe write off 50% of the new truck.

So if I make $6000 in payments in one year, can I write off $3000 for business?

Mark I will take a look at that publication.
First of all, the only impact the amount of payments made have on the deduction is the interest included in the payments.

The amount of write off for the new truck should be determined by the actual business use of the truck. If you drive it 10,000 miles during the year and 7,000 of those are business, then you would be able to write off the mileage rate times 7,000 miles or 70% of your expenses.

If you use it 10% for business, then you would have a 10% write off. If you are using the new truck for business at the same time the crew is out using the other truck, then you are probably in violation of the simultaneous use rules and would be prohibited from using the mileage method on the new truck.

I assume since you are running the business that you have a tax preparer / accountant / cpa. Check with them for specifics on your particular situation.
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Old 05-07-2003, 03:43 PM
scott's turf scott's turf is offline
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Thanks Bruce. I think I have a better idea now.
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Old 05-07-2003, 04:29 PM
Green in Idaho Green in Idaho is offline
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Well it's obvious you can't use the standard mileage method, so it goes to actual for both or all 3 if you keep the toy.

Also consider vehicles are "listed property" and they have special rules that especially impact you if your use is close to or less than 50%. Bottom line, you can't use accelerated depreciation tables so the depreciation deduction will not be what you are used to. See that same pub or www.irs.gov for the spec rules on listed property.

As Bruce said check with your personal accountant, or get one.
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