Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #31  
Old 12-08-2012, 11:51 PM
kyles landscape kyles landscape is offline
LawnSite Member
 
Join Date: Oct 2012
Location: illinois
Posts: 230
Oh sorry didn't see you had a 450 ya makes sense then but in the case of the guy that posted this I would get 1 truck that's decent for a bit more rather then 2 vehicles
Posted via Mobile Device
Reply With Quote
  #32  
Old 12-09-2012, 07:03 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
I am not going to drive by the grocery store go home and get my car and then go to the grocery store either.

It is incidental and de minimis.

If I can only afford one item then buy the nicest truck you can for work.
Reply With Quote
  #33  
Old 12-09-2012, 09:56 AM
herler herler is online now
LawnSite Gold Member
 
Join Date: Apr 2012
Posts: 3,858
I am having trouble understanding how someone starting up a business just so happens to have twenty thousand cash laying around, mostly because if that is your situation why are you even here asking stupid questions, you got that kind of money you should have went out already and done what your heart desires.

But then that's not the case, is it?

No, 4 pages of argument back and forth over some silly trivial nonsense doesn't happen because someone has a ton of money.

You are here because you need us to back you up, in a round-about beat around the bush kind of way, because you're about to take out a loan and when that backfires you want the ability to have someone other than yourself take the blame for the failure.
Which is why I'm here to tell you that is a very bad idea, blame is going to be the least of your worries if things go south.

Whether one vehicle or two, whichever you decide.
But you get what you can afford, and pay cash for it.

You're probably looking at something more like a 4 thousand dollar truck, if you even have that much.
And if anything's left over, maybe you can buy a car, too.

Now if you don't have a personal vehicle you will be riding a very expensive device for personal reasons, that truck won't cost less than a dollar for every mile driven, one other thing... You really plan on hooking and unhooking that trailer every dang time you need the truck for yourself, you're kidding yourself, start planning on unloading everything too because leaving a truck and trailer sitting outside a store in an unsupervised parking lot with all sorts of goodies in back is an invitation for thieves.
And steal your stuff they will.

Time to re-think this strategy.

Last edited by herler; 12-09-2012 at 10:05 AM.
Reply With Quote
  #34  
Old 12-09-2012, 10:35 AM
yardguy28 yardguy28 is offline
LawnSite Platinum Member
 
Join Date: Jan 2010
Posts: 4,465
Quote:
Originally Posted by DannyLot View Post
What's everyone's advice on using the same vehicle for work an their primary personal vehicle ? Reason I ask is I was thinking of trading in my car to get a nice 1 ton vehicle for 20k used or just getting a used truck for 10k strictly for landscaping an plowing .. What ya guys think ?
no advice other than to go ahead and do it.

I have and always will have one truck for both personal and business use. I keep track of work miles for tax purposes. fill the truck up with personal credit card.

the only situation I'd have a separate for is if I ever get a one ton dump truck like I keep thinking about doing.

to herler I had at least double that when I started my business. who says you have to be poor or in need of money to start a business?

I started my business to be doing work I actually enjoy doing. I was making well over double what I make now at my previous job. I've saved a lot of money in that time.
Reply With Quote
  #35  
Old 12-09-2012, 10:38 AM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
Nothing wrong with financing if you have the cash flow to pay the note.
Reply With Quote
  #36  
Old 12-09-2012, 11:01 AM
Darryl G Darryl G is offline
LawnSite Fanatic
 
Join Date: May 2001
Posts: 8,009
I don't think anyone has mentioned this, but maybe i missed it: If you want to write off 100% of the cost of your work truck you have to have a personal vehicle available for your use as well.
Reply With Quote
  #37  
Old 12-09-2012, 11:28 AM
ted putnam's Avatar
ted putnam ted putnam is offline
LawnSite Platinum Member
 
Join Date: Dec 2007
Location: Arkansas
Posts: 4,172
I just purchased my 3rd truck Friday. I actually pick it up tomorrow.( It was late when we made the deal so paperwork and check will be taken care of tomorrow.)

I deduct 100% on my trucks. I do this because even when I am at the grocery store, that truck is advertising my business. Its a rolling billboard advertising my business 24 hrs a day no matter where I am. Last time I checked, advertising was a legitimate business expense. I get calls from people who see it when I'm driving whether it is in route to the next stop on my route for the day or if I am going to check on my parents who are in their late 70's.

Maybe I rationalize it so I can sleep at night, but that's the way I look at it.
When the state tells me I don't have to have a lettered truck to spray lawns any more, then maybe I'll change the way I do things as far as vehicle expense. Until then, I will keep doing things this way. I don't feel that it is dishonest and it is much easier for me.

We don't use the spray trucks to go out to eat on Friday night(We use my wife's Tahoe). However, If I discover we need a gallon of milk, I don't wait for my wife to get off work to use her vehicle to go get it.
__________________
"The Poor Fish" circa 1930's: The Poor Fish wouldn't have been caught if he'd known enough to keep his fool mouth shut.

"Opportunity is missed by most because it is dressed in overalls and looks like work"- Thomas Edison, businessman/inventor
Reply With Quote
  #38  
Old 12-09-2012, 11:37 AM
DannyLot DannyLot is offline
LawnSite Member
 
Join Date: Oct 2012
Location: Westfield, nj
Posts: 46
Quote:
Originally Posted by herler View Post
I am having trouble understanding how someone starting up a business just so happens to have twenty thousand cash laying around, mostly because if that is your situation why are you even here asking stupid questions, you got that kind of money you should have went out already and done what your heart desires.

But then that's not the case, is it?

No, 4 pages of argument back and forth over some silly trivial nonsense doesn't happen because someone has a ton of money.

You are here because you need us to back you up, in a round-about beat around the bush kind of way, because you're about to take out a loan and when that backfires you want the ability to have someone other than yourself take the blame for the failure.
Which is why I'm here to tell you that is a very bad idea, blame is going to be the least of your worries if things go south.

Whether one vehicle or two, whichever you decide.
But you get what you can afford, and pay cash for it.

You're probably looking at something more like a 4 thousand dollar truck, if you even have that much.
And if anything's left over, maybe you can buy a car, too.

Now if you don't have a personal vehicle you will be riding a very expensive device for personal reasons, that truck won't cost less than a dollar for every mile driven, one other thing... You really plan on hooking and unhooking that trailer every dang time you need the truck for yourself, you're kidding yourself, start planning on unloading everything too because leaving a truck and trailer sitting outside a store in an unsupervised parking lot with all sorts of goodies in back is an invitation for thieves.
And steal your stuff they will.

Time to re-think this strategy.
What don't you understand about someone wanting to start a business having 20k ??? Not everyone finances everything I have around 50k liquid to invest actually in this business but obviously I'm not gonna go spend 50k just like that unless I have the clientele to support that. I've owned a business before, made some smart real estate moves and sacrificed a lot early. I'm 30years old an have a lot more then most twice my age... But I always was working 3 jobs when I was 19 instead of hanging out down town with everyone else.
No question is a dumb question. I just wanted people's opinions on the subject an wanted to see from everyone in both situations how they felt abut it an their pros and cons. As for people arguing on this topic that has nothing to do with me that's their own personal problem or perogitive.
So no I will not be taking out a loan as you assume and I have more then 4k to spend on a truck.. At least I can say for the last few sentences of your post you had some real advice an opinions so thanks for that.. unlike the rest of the garbage you wrote.
Reply With Quote
  #39  
Old 12-09-2012, 12:20 PM
Darryl G Darryl G is offline
LawnSite Fanatic
 
Join Date: May 2001
Posts: 8,009
Quote:
Originally Posted by ted putnam View Post
I just purchased my 3rd truck Friday. I actually pick it up tomorrow.( It was late when we made the deal so paperwork and check will be taken care of tomorrow.)

I deduct 100% on my trucks. I do this because even when I am at the grocery store, that truck is advertising my business. Its a rolling billboard advertising my business 24 hrs a day no matter where I am. Last time I checked, advertising was a legitimate business expense. I get calls from people who see it when I'm driving whether it is in route to the next stop on my route for the day or if I am going to check on my parents who are in their late 70's.

Maybe I rationalize it so I can sleep at night, but that's the way I look at it.
When the state tells me I don't have to have a lettered truck to spray lawns any more, then maybe I'll change the way I do things as far as vehicle expense. Until then, I will keep doing things this way. I don't feel that it is dishonest and it is much easier for me.

We don't use the spray trucks to go out to eat on Friday night(We use my wife's Tahoe). However, If I discover we need a gallon of milk, I don't wait for my wife to get off work to use her vehicle to go get it.
Good luck making that arguement to the IRS. You know darn well when you're using it for personal use and you're supposed to be keeping a log. The fact that it's lettered does not negate that. Can I say that I've never run out to get a pizza with my truck...of course not, but yes it does sound like you're just tryng to rationalize it.

I also like having a personal vehicle so I can leave the dump trailer hitched up or the tools in the bed and not have to fully demobilize after work. Nice when the wife's car needs to go into the shop too.
Reply With Quote
  #40  
Old 12-09-2012, 01:08 PM
Duekster Duekster is offline
LawnSite Fanatic
 
Join Date: Jan 2007
Location: DFW, TX
Posts: 7,971
Quote:
Depreciation and section 179 deductions. Generally, the cost of a car, plus sales tax and improvements, is a capital expense. Because the benefits last longer than 1 year, you generally cannot deduct a capital expense. However, you can recover this cost through the section 179 deduction (the deduction allowed by section 179 of the Internal Revenue Code), special depreciation allowance, and depreciation deductions. Depreciation allows you to recover the cost over more than 1 year by deducting part of it each year. The section 179 deduction, special depreciation allowance, and depreciation deductions are discussed later.
Generally, there are limits on these deductions. Special rules apply if you use your car 50% or less in your work or business.
You can claim a section 179 deduction and use a depreciation method other than straight line only if you do not use the standard mileage rate to figure your business-related car expenses in the year you first place a car in service.
If you claim either a section 179 deduction or use a depreciation method other than straight line in the year you first place a car in service, you cannot use the standard mileage rate on that car in any future year.

Car defined. For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Its unloaded gross vehicle weight must not be more than 6,000 pounds. A car includes any part, component, or other item physically attached to it or usually included in the purchase price.
A car does not include:

An ambulance, hearse, or combination ambulance-hearse used directly in a business,


A vehicle used directly in the business of transporting persons or property for pay or hire, or


A truck or van that is a qualified nonpersonal use vehicle.







Qualified nonpersonal use vehicles. These are vehicles that by their nature are not likely to be used more than a minimal amount for personal purposes. They include trucks and vans that have been specially modified so that they are not likely to be used more than a minimal amount for personal purposes, such as by installation of permanent shelving and painting the vehicle to display advertising or the company's name. Delivery trucks with seating only for the driver, or only for the driver plus a folding jump seat, are qualified nonpersonal use vehicles.
http://www.irs.gov/publications/p463...blink100034056

I consider my trucks to be qualified nonpersonal vehicles, I use actual expenses and I have a personal car. I do not tool around on personal erands.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 12:17 AM.

Page generated in 0.07099 seconds with 9 queries