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How do I get this tax deducton for off road fuel?

Discussion in 'Lawn Mowing' started by CharlieBingo, Feb 9, 2005.

  1. CharlieBingo

    CharlieBingo LawnSite Senior Member
    Posts: 400

    I read about getting money back for fuel used in equip. (off road) anyone know how this works? Thanks in advance.
  2. lawnman_scott

    lawnman_scott LawnSite Fanatic
    Posts: 7,547

    fill out form 4136. You can get it off the irs website. I think off road part is the first part of the form. its like 18.4 cents per galllon.
  3. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

  4. yamadooski

    yamadooski LawnSite Senior Member
    Posts: 434

    I also use 2 pumps at the station when filling up each day.
    1 for the truck and the other for equipment.
    When filling up the truck I always put in .01 over the dollar amount such as $35.01
    This way I know which one is which when doing the accounting.
  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700


    Why would someone need to claim the off road when the entire amount is claimable on Schedule C?
  6. cleancutccl

    cleancutccl LawnSite Senior Member
    Posts: 698

    For one thing richard, fuel for your vehicles is only used as a deduction if you are using the vehicle 100% for business. This is also to say that you must be using actual costs for that same vehicle instead of standard costs where you would just get the standard mileage rate. Basically if you are running a newer truck that doesn't need much or any repairs, you would want to keep track of your machinery fuel and vehicle fuel seperately and only claim your machinery fuel on the sch C, and claim standard mileage on the vehicle. Hope that makes sense to everyone.
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Thanks for the answer Cleancutccl but that doesn't really answer my question. How does vehicle fuel even measure into the off-road tax question? I do take the standard deduction for my truck (X cents per mile) and I claim all of my machine (mowers, trimmers etc) fuel on my Schedule C. Where would the off-road tax exemption come into play? Or are we talking about a situation where the Feds would actually send me a check as a refund for the road tax I paid for my off-road equipment fuel?
  8. Norm Al

    Norm Al LawnSite Bronze Member
    Posts: 1,227

    actually you can get away with picking a percentage of fuel you use for equipment!

    to your cpa you say,,,,"i use 60% of my fuel in my equipment",,,,he says "ok and you spent $15,000 total on fuel" and figures your tax rebate!
  9. Albemarle Lawn

    Albemarle Lawn LawnSite Bronze Member
    Posts: 1,544

    Yes, you will get a check if you do not owe.

    For example, if you had a lot of depreciation (common because of recent accelerated depreciation for trucks and equipment), you can actually lose money on paper (even though you may have some money left over) and still get a check based on how much fuel you used off road.

    For example, I think Federal is now $.24/gallon, so if you ran a mower 1000 hours, it is likely to have used 2,000 gallons of fuel. You have paid $480 in taxes for road use to the Feds, and they will refund that to you.

    This is a great way to get a tax refund in bad years, high depreciation years, and startup years.

    This is why it is STUPID TO NOT FILE for part timers and startups, you are losing a potential refund and breaking the law.

    Why you claim this seperately, is, because if you write it off on Schedule C, the whole amount, you are only recovering to the extent of your tax bracket. You may only recoup $.15 on 1 dollar if you wind up in the 15% bracket. You are only getting an income reduction on schedule C.

    BUT, using the special form, you write off the cost of the fuel in schedule C, excluding tax, then the taxes paid for on-road fuel not burned on the highway are considered a TAX PAYMENT versus just an income reduction.
  10. TClawn

    TClawn LawnSite Silver Member
    Posts: 2,036

    can't you just go down to the boat docks gas station and fill up there? I'm pretty sure that they sell it at the off road price. they also put a coloring in it that makes it pink so they know what your using it for.

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