Fuel For Mowers A Tax Deduction?

Discussion in 'Business Operations' started by D Soliday, Dec 31, 2006.

  1. D Soliday

    D Soliday LawnSite Member
    Posts: 2

    New here with a question. Can the fuel we use in mowers, trimmers & edgers be counted as supplies or can we only get the federal excise tax back for non highway vehicles or both?

  2. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    Yes. I itemize it as off-road fuel. Same goes w/ any gas that is not used on the road. You have to save receipts though.
  3. D Soliday

    D Soliday LawnSite Member
    Posts: 2

    Thanks for the reply, so what you are saying is you can ONLY claim the mower fuel with the Federal Excise Tax Credit for non-highway vehicles and not claim it as supplies?

    I guess you couldnt claim both on the mower fuel? What about the fuel used for trimmers & edgers?


    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    Are you guys saying that Gasoline(not diesel) qualifies for a separate deduction other than the obvious business expense because it is used off road?
    I truly have no idea what you are talking about.
  5. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    I find it much easier to keep everything in the company name ....so the company pays fore all fuel, equip cost, repairs n such

    n than as an officer of the company I drive a company vehicle .... of coarse I no longer have the mileage tax right off ....but than I don't have vehicle expenses ....which includes the monthly payment or full purchase price ...the up keep, insurance etc

    When we fuel up .... trucks n equip .... all fuel is purchased with the company check or credit card if you must .... I run a monthly tab at my local fuel stop n pay with a check ...they give me receipt copies which I can compare with my own

    I don't understand why one would wish to use fuel in equip as a tax deduct ...it's a business expense it's already taken away from gross ....thus lowering one's net profit or taxable income

    Ya might wish to talk to a CPA if your a solo n buying with ones' own $$ ... especially if your buying "off road fuel"
  6. bcg

    bcg LawnSite Bronze Member
    from Tx
    Posts: 1,835

    Yes, the states collect a "road use tax" on every gallon of fuel sold. I don't know if it varies from state to state but in Tx, it's 20 cents per gallon. Here you save the reciepts (marking on them at the time of purchase that they're for some off road equipment) and file a form to get the refund. I do it once a year. This year my refund will probably be around $300.
  7. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    This is for ALL fuel used for any off-road purpose. This includes: Boats, ORVs, ALL agricultural equipment, etc.... You are not getting back all of the taxes paid on it, but a portion of it. You are getting this money back, it not a deduction; or at least that is the way I understood it when it was explained to me. I itemize it when I enter everything into Quickbooks as "Off-road Fuel". I also have an item for Highway Fuel".
  8. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    it's not the income tax deduction that you et from the fuel,
    it's the highway tax that you have already paid every time you buy fuel that gets REIMBURSED...

    you sould be keeping your fuel for any mowers, trimmers, tractors, etc... seperate from your vehicles.

    the highway tax varies from state to state, but ranges from $.25-$.60/ gallon.
    at the end of the year you file this as nonhighway fuel and the taxes you already paid when you bought the fuel is credited towards your current tax liability.

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    I will call my accountant on Tues. Talked to a couple of business associates today, they thought it was a joke.
    I think in NJ this is only valid for Diesel fuel.(over the road tax?)
    In 2006 I purchased over 20,000 gals so I am going to look into it. Probably half went to mowers and machines.
    I will let you know what I find out.
  10. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    I did not know that for NC. Thanks YardPro.:)

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