tax break for a new truck

Discussion in 'Trucks and Trailers' started by Smitty58, Oct 27, 2004.

  1. Smitty58

    Smitty58 LawnSite Senior Member
    Posts: 531

    Does anyone know what the bottom line tax break is for a new truck? Is it still in effect? I would like to buy a new SD Ford and the tax break would help sell it to the boss ,but how much does amount to?
     
  2. dfor

    dfor LawnSite Senior Member
    Posts: 824

  3. Smitty58

    Smitty58 LawnSite Senior Member
    Posts: 531

    dfor - thanks, so what does this mean? If you buy a new truck for business and lets say you spend $25000 ,can you write off $25000 the 1st year? And if you do I would say most people would end up owing $0 on their taxes. Am I looking at this right?
     
  4. dfor

    dfor LawnSite Senior Member
    Posts: 824

    I just found another link where the $100,000 was reduced to $25,000 for the year 2003 for "most" purchases. Not sure what most actually refers to. http://money.cnn.com/2004/10/07/pf/autos/suv_tax.reut/index.htm

    Anyway, I'm no tax pro and I didn't stay at a Holiday Inn Express last night, but the deduction would lower your net income by $25,000. I'd check with an accountant though.
     
  5. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Up to $100,000 for the FY but you must keep the vehicle 5 years or reclaim the original amount. Talked with my accountant about it for my 1/2 ton. Also, if it is over 6,000lbs it is excluded from this and automatically qualifies for full deduction.
     

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