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Deducting gasoline used for equipment

Discussion in 'Business Operations' started by HAS0586, Mar 20, 2009.

  1. HAS0586

    HAS0586 LawnSite Member
    Posts: 19

    How do I deduct gasoline used for my equipment? I do not see anywhere were I might put it on my 1040 form. Any help appreciated!
  2. razor1

    razor1 LawnSite Bronze Member
    Posts: 1,985

    Do you have an actual business or are you just working on the side?
  3. Proc's Lawncare

    Proc's Lawncare LawnSite Member
    Posts: 92

    Ya if your a licensed business you will need to file long form and take your deductions, we've used turbo tax and "edited in" the fuel cost expense... Very easy to do, hope this helps!
  4. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,511

    you can also braek that down and also get a credit for all gas used off road.
  5. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,601

    On schedule C, just list it as a separate item under "Other expenses" in part V and carry the amount over, with other "other expenses" to line 27.
  6. HAS0586

    HAS0586 LawnSite Member
    Posts: 19

    I was doing it part-time last year but am now going full time. But I was registered with the county and have my DBA and EIN.

    I thought that would be the way but wanted to make sure.

    I have heard about the credit. Can I deduct the cost of the fuel and get the credit at the same time?

    Appreciate the help guys!

    - Hunter
  7. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    You get both the deduction and the credit for the federal tax paid for off road use, but that credit will be considered income for this next year.
  8. HAS0586

    HAS0586 LawnSite Member
    Posts: 19

    Awesome! Thanks.

    - Hunter
  9. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,601

    Be extremely careful with the fuel tax credit thing. Since fraudulent claims is on the list of scams that the IRS is watching for, it is wise to be absolutely sure you have sufficient documentation to support your claim. You must have documentation and contemporaneous records supporting your claim that clearly establishes the the dates, names/addresses of vendors, the purposes for which you used the fuel, and the number of gallons used. Penalties alone can run as high as $5 grand.
  10. DLCS

    DLCS LawnSite Platinum Member
    Posts: 4,378

    Ok ,So like for us who buy our diesel fuel at the truck stop and we only use diesel in the ztrs, We have no trucks that use diesel. How do we document that to get the Federal fuel tax credit on the diesel? How do we prove that we only used the diesel off road. How should we document that?

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