Tax deduction?

Discussion in 'Business Operations' started by richm23, Mar 15, 2006.

  1. richm23

    richm23 LawnSite Member
    Posts: 24

    I have a 3/4 ton truck that I Depriciate. I also have 2 other vehicles 1 SUV and 1 car. Can I also write off the SUV- which is used for estimates and gathering materials, and even pulling equipment sometimes.

    Thanks
    Rich


    I know I will ask My accountant, but I thought I would see what you guys had to say.
     
  2. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    I would say yes, would have to keep track of gas/mileage when serving that purpose. Hopefully a tax expert will chime in. I have 3 trucks I write off, one is a lease, the other 2 are by mileage/fuel:)
     
  3. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    My personal truck I use the mileage. My work truck I use the mileage as well because it's an older truck and I can deduct more when using the mileage VS. cost of fuel and repairs. My big truck I use for collecting scalping and leaf removals, I use the cost of gas and repairs....this exceeds the what I would get is I used mileage. My odometer don't work in that truck anyway...lol

    Matt
     
  4. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    Technically without getting into trouble you can fully deduct both the 3/4T and the SUV. As long as your car is available for personal transportation.

    My pickup is 100% business only. My car is personal transportation.
     
  5. wriken

    wriken LawnSite Silver Member
    Posts: 2,154

    Ya I remember now, my accountant said as long as you have a established vehicle, for personel use you can deduct the other vehicles.
     
  6. pennypincher

    pennypincher LawnSite Member
    Posts: 34

    I think with the SUV you would be better off with the mileage. You might gain some in short term but if IRS would question the SUV it would be hard to convince them that the vehicle was 100% business. I have never seen a lawn care business ran out of the back of an SUV and unless the use of this vehicle is "ordinary and necessary" they would disallow this. And that could get ugly.
     
  7. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    Though I think a SUV is stretching it, a SUV could = your estimate giving vehicle, your business supply shopping vehicle, your parts shopping vehicle, flyer dispersal vehicle, etc.

    Work related isn't ALWAYS just mowing lawns.
     
  8. pennypincher

    pennypincher LawnSite Member
    Posts: 34

    The downside to putting the SUV into service as a "company" vehicle would be if there was an accident or you would get sued, that would be one more asset to go after if insurance was inadequate. That write off of a vehicle would be leaving you open to the loss of a personal asset which is something that I think you should avoid. I am not saying that you dont have enough insurance but, bad things happen to good people all the time and I think you need to keep business and personal as saparate as possible. And if you are and LLC or Scorp and have two vehicles for business and one for personal you could get screwed if a lawyer decided to get nasty.
     

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