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  #1  
Old 08-20-2006, 12:36 AM
jsf343 jsf343 is online now
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Join Date: Apr 2005
Location: Portland,Oregon
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another big tax write off?

Anyone lease their work truck(s) and write off that payment instead of owning? I have been having a few issues with a used truck I bought for one of the routes.(97 f-250) It got me thinking about newer trucks and leasing.
I am not necessarily talking brand new, but newer.(=less problems) advantages seem to be...
1. as stated less problems.(maintenance, breakdowns, etc.)
2. under warranty? could be.
3. newer, better gas mileage hopefully
4. write off.
5. could trade up or apply payments towards owning?

disadvantages...
1. lot of money? I suppose close to $300.00 a month for payments
2. you wreck, you screwed
3. higher insurance costs?
4. ???

input anyone?
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  #2  
Old 08-20-2006, 06:21 AM
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Ron's Lawncare Ron's Lawncare is offline
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Join Date: Jan 2005
Location: Southern Maine
Posts: 267
you just need to be careful with the mileage charge. the leases i've seen have a 10k-12k limit per year. over that they charge per mile. also the damage clause scares me for a work truck i.e. interior stains , scratches etc.
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  #3  
Old 08-20-2006, 09:21 AM
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gardenkeeper88 gardenkeeper88 is offline
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Location: Northern Indiana
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Leased my first truck. Helped a lot with payments being smaller tham purchase. After lease was done I bought it and now make more payments. Like I said helped me get started but 5year and 2 more to go I'm still buyin a 99 truck.
So + & - you decide for you.
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  #4  
Old 08-20-2006, 01:56 PM
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MMLawn MMLawn is offline
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Leasing is by far the very most EXPENSIVE way to get any vehicle (or any equipment really). Leases are not your friend.
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  #5  
Old 08-20-2006, 02:10 PM
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DUSTYCEDAR DUSTYCEDAR is offline
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leasing=renting and thats that
renting works for some but not me i like to make money
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  #6  
Old 08-21-2006, 09:56 AM
topsites topsites is offline
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Location: Richmond Virginia
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What I've been told to do is create another company who takes care of the trucks financially as it buys and repairs / maintains your trucks. Of course you are the one doing the work, but this other company takes care of the money.
Then, this second company leases the trucks to your Lco.

Supposed to be some tax and other benefits to doing it this way, I never tried it but the guy who told me really seemed to know what he was talking about and he did things this way with his company.
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  #7  
Old 08-21-2006, 10:14 PM
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VWBOBD VWBOBD is offline
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Join Date: Apr 2006
Location: CHATSWORTH GA.
Posts: 223
Quote:
Originally Posted by jsf343
Anyone lease their work truck(s) and write off that payment instead of owning? I have been having a few issues with a used truck I bought for one of the routes.(97 f-250) It got me thinking about newer trucks and leasing.
I am not necessarily talking brand new, but newer.(=less problems) advantages seem to be...
1. as stated less problems.(maintenance, breakdowns, etc.)
2. under warranty? could be.
3. newer, better gas mileage hopefully
4. write off.
5. could trade up or apply payments towards owning?

disadvantages...
1. lot of money? I suppose close to $300.00 a month for payments
2. you wreck, you screwed
3. higher insurance costs?
4. ???

input anyone?
BUY THE VEHICLES, DEPRECIATE THEM OUT TO $0 OVER ABOUT 5 YEARS, STILL WRITE OFF MILEAGE AT ABOUT $.41 PER MILE IF THIS IS YOUR FULL TIME JOB. KEEP GOOD RECORDS OF MILEAGE. KEEP LOG . i USE A LOG BOOK AND RECORD MILEAGE AT FILL UPS. IF YOU USE THE VEHICLE FOR PERSONAL USE YOU CANNOT WRITE OFF THOSE PERSONAL MILES . SURE WITH LEASES YOU GET A CHEAPER PAYMENT AND CAN WRITE OFF PAYMENTS BUT WHEN THE LEASE COMES UP YOU HAVE TO BUY OR GIVE IT BACK AND PAY EXTRA FOR BEING OVER ON MILEAGE OR SCRATCHES OR ANY OTHER DAMAGE OR EXCESSIVE WEAR . PAYMENTS AND INTEREST ARE WRITE OFFS TOO IF IT IS A BUSINESS VEHICLE. AND WHEN ITS PAID FOR YOU HAVE DEPRECIATED IT TO 0 AND IT DOESNT AFFECT YOUR ASSET TOTAL FOR TAXES, AND ALL REPAIRS AND EXPENSES ARE STILL DEDUCTABLE. (SORRY ABOUT THE CAPS, DIDNT REALIZE IT WAS LOCKED ON)
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  #8  
Old 08-21-2006, 10:17 PM
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VWBOBD VWBOBD is offline
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I love tax deductions!!
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  #9  
Old 08-21-2006, 10:52 PM
Az Gardener Az Gardener is offline
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Join Date: Sep 2005
Location: Phoenix, Az
Posts: 3,893
Quote:
Originally Posted by topsites
What I've been told to do is create another company who takes care of the trucks financially as it buys and repairs / maintains your trucks. Of course you are the one doing the work, but this other company takes care of the money.
Then, this second company leases the trucks to your Lco.

Supposed to be some tax and other benefits to doing it this way, I never tried it but the guy who told me really seemed to know what he was talking about and he did things this way with his company.
We did this in my last company (a partnership). You had to have quite a bit of vehicles and equipment for it to be cost effective because of the additional paperwork another set of tax's to do at the end of the year, another corporation to set up etc. I forget the break even point, it was set up years ago. Seems like we had about 5-6 trucks but it was when we bought the crane that it really made the difference.
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  #10  
Old 08-22-2006, 12:47 AM
jsf343 jsf343 is online now
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Join Date: Apr 2005
Location: Portland,Oregon
Posts: 1,743
well, I think I have enough good info here (or should I say reasons) from everyone and thinking through it a little more to stay away from that idea. personally I like owning all my own equipment and being as debt free as possible but when someone threw that idea out I didn't know the ins and outs of it to much and after reading the replies I think It is wiser to stay away from leasing. (in my case anyway) Thanks for the input y'all. Jeff
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