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How do you deduct Truck Maintenance?

Discussion in 'Business Operations' started by zz4guy, Jul 16, 2009.

  1. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    Mileage or actual costs? What are the pros and cons of each?

    My first two years I've been using mileage bacause it's easier and seems to cover everything. But this year I am driving less business miles and now need new tires and front end work which will be pushing $1500. If I deduct strictly by mileage this year I won't be able to cover everything. What do you guys think. Is it time for me to switch to the actual costs deduction? How big of a PITA is that?
  2. dwlah

    dwlah LawnSite Senior Member
    from Argo Al
    Posts: 558

    keep up with both until the end of the year then you can decide
    or at least thats what I do
  3. zz4guy

    zz4guy LawnSite Senior Member
    Posts: 901

    Yeah, but problem is the IRS rules say that once you deduct expenses, you cannot go back to mileage on that vehicle again.
  4. dwlah

    dwlah LawnSite Senior Member
    from Argo Al
    Posts: 558

    Let me rephrase my answer
    You dont have to decide until you file your taxes
    Doing the switch shouldnt be a problem if you keep up with all your paperwork(reciepts)
    Just remember Im a LCO not a CPA
    Id talk to your tax guy
  5. dtelawn

    dtelawn LawnSite Member
    from Alabama
    Posts: 113

    As stated before, you CPA will be able to help make the best financial choice. My accountant has steered me away from the depreciation for these reasons.

    Once you depreciate all of the truck it's over(except repairs, maint, ect.)

    If you sell the truck later, you will have to pay back the difference from deduction to sale price.(Payback would be through deductions later)

    When deducting fuel costs, I have learned that sometimes we may use much more fuel when it starts going up then less fuel when prices fall back down.

    If you claim mileage, you get the gov deduction for all miles that year.

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