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  #11  
Old 02-08-2013, 11:28 AM
JimMarshall JimMarshall is offline
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Join Date: Feb 2013
Location: NW PA
Posts: 252
Quote:
Originally Posted by HPI_Savage25 View Post
My mom is an accountant and has been doing our own taxes for years. This is the only questions we weren't sure about
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Please don't take offense but if your mom is an accountant and can't handle something as simple as a personal vehicle used for business, she's not much of an accountant.
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  #12  
Old 02-08-2013, 11:31 AM
HPI_Savage25 HPI_Savage25 is offline
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Join Date: Sep 2012
Location: Martinez, GA
Posts: 192
She's an accountant at a private school. She said i can't claim the truck but for mileage I'd have to have records for it all but since I've had the truck maybe 2000 miles of it has been personal use, other than that its all business. Mowing, estimates, etc
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  #13  
Old 02-08-2013, 12:41 PM
JimMarshall JimMarshall is offline
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Join Date: Feb 2013
Location: NW PA
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You cannot deduct the truck, but you can deduct the mileage OR expenses, provided you have immaculate records.
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  #14  
Old 02-08-2013, 02:22 PM
britsteroni britsteroni is offline
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Join Date: Feb 2007
Location: Missouri
Posts: 327
Quote:
Originally Posted by HPI_Savage25 View Post
Ok I do my taxes myself but I am wondering on a few things. I bought a truck in April and it is in my name, not the company name because I didn't know how to put it in the company name and haven't exactly looked into it really. 95% of its use is business use. I may drive it to school one day a week if that. I try to keep it strictly business and besides I have a Honda accord I get 30mpg instead of the 9mpg in the truck. I would like to claim the $6500 purchase price of the truck with a 3 year depreciation. I would like the 3 year because that's how long the loan is for and would help out the next 2 years also on my taxes. Other than my truck the rest is just fuel, parts, dump fees and a chainsaw. Total mileage I've put on the truck is 12,200 since I bought in April.
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Keystone gave you some good advice in that you should seek out a qualified tax professional. I am in no way criticizing your mom, but being a bookkeeper for a school system has nothing to do with being a tax accountant.

First of all, there has been some bad advice given by other members. Here is what you can do with your truck purchase:

1. Because you are making payments and do not wish to take bonus depreciation up-front on the truck, you can depreciate the truck over 5 years.

2. You are not allowed to expense the truck and take mileage, but you are not using the 179 expense allowance. So even though you are depreciating the truck over 5 years, you can take the higher of the mileage expense or actual expenses.

3. So the calculation would look like this for the mileage expense: 12,200 miles x 95% business use = 11,590 miles x 55.5 cents/mile. So unless your actual expenses exceeded $6,432, you would be allowed to take that as the expense on your truck for 2012.

4. Remember that with depreciation you are expensing the purchase of the truck. Using mileage or actual expenses is for the cost of operating the truck. That is why both deductions are allowed.

The above isn't specific tax advice. It would actually save you money to take your taxes to a qualified tax professional just based on what you would have done without me explaining it to you. Doing your own taxes is fine, but you need to put in the time to learning the tax code if you take that route. For most small business owners, it doesn't pay to be a jack of all trades and master of none.

Gabe Lumby, CPA
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