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Buying a truck?????

Discussion in 'Business Operations' started by sgl41377, May 21, 2007.

  1. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    I talked to my CPA about buying a truck. He said that I should buy the truck as a personal vehicle and track mileage. This seems like a wierd way of doing things if the truck is going to be used for business only. He said that by writting off the total mileage each year, I will be better off in the long run. Any suggestions or comments would be appreciated. Is this right or wrong?
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    Mine's pov for insurance reasons, only thing is I can have no lettering and one or two other things, but it saves me a bundle... Not sure if this was what your cpa was after, tax-wise I'm not sure it makes a difference but I'm no expert, afaik the mileage and capital gain / gross loss is deducted all the same, I think it is cheaper some kind of way thou, at least for solo out-of-home ops it appears to be the wtg.

    As far as insurance, idk what to tell you but I would say you have to let them know some kind of way what you are doing, I mean I don't recommend hiding the fact, take it from there.

    See idk, but my cpa tells me something and I hardly question it after the headaches I've had, I don't think you stand much to lose going pov, me thinks the other way is just more paperwork and all that stuff...
  3. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    I hope he has a history of working with you. If he just threw that out there as a blanket statement, I'd get a new CPA right away.

    There is a fine line here depending on how much the vehicle costs, what it costs to operate, and how many miles you run a year. If this is a $40,000 truck you don't drive a whole lot, then write off the truck. If this is a used Toyota that gets 30 mpg and you run 30,000 miles a year, take off the mileage.

    Anywhere in between you need to have him "run the numbers".:)
  4. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    he has been my CPA for 3 years. he is very good. Here is the situation. I am a growing company. Right now I use the family SUV to pull the trailer but have a part time helper that I need to get cutting grass on his own some days. So I need a truck. I want to buy a used truck for say $10k. I think Personally owned is the way to go. Why cant I put my company logo on it? I have my logo on my SUV. Thanks for the replies and I eagerly await another reply.
  5. mkroher

    mkroher LawnSite Senior Member
    Posts: 539

    Use magnets to display a logo.
  6. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    Is it not legal to have a logo permanently installed on the truck if it is a personally owned vehicle?
  7. GreenN'Clean

    GreenN'Clean LawnSite Bronze Member
    Posts: 1,512

    If you use the magnetic logos then you can put them on the truck when your doing work and take them off when your doing your personal driving
  8. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    It all depends on our personal situation. For what it's worth, there is a provision (263?) where you can immediately writeoff up to a little more than $100k per year of fixed assets pruchased during the year (if you have the income to offset it). So I always flush the whole cost of the truck through in year one.
  9. sgl41377

    sgl41377 LawnSite Member
    Posts: 191

    I cannot tell you how many people look at my family SUV I use for business and write down the phone number. I live in the city I typically work in so it is great advertising just driving it around town. As long as it is legal I will get my logo installed on the side of it. My main problem now is to buy used or really used. I will not buy a new truck. I am thinking of buying something with around 60K miles for 10K. I have been looking at some with 160k for about 4k. I just dont know.
  10. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Very wrong. First of all, my younger brother who handles all my accounting activities in my business is a CPA would tell ya the very exact same thing.

    First of all, how will it be registered? If it is in your company name, it must be named that way.

    Now for insurance. If you are going to use that truck for business/commercial purposes, your insurance company will want to know that. Why? Simple. If there is a claim and the truck is being used for business purposes and it is insured for personal use, you are SOL big time. The insurance company has every right to reject you claim and/or someone else's if it was your fault in case of an accident.

    I highly suggest you find better advice in these matters...as for now, my advice was free.

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