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taxes and your truck operating costs???

Discussion in 'Business Operations' started by GarPA, Sep 2, 2002.

  1. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    For end of year tax purposes do you keep all the gas slips, oil chng slips, maintenance slips and add them up for your truck operating cost deduction or do you do it another way? This is what I do but I had someone tell me this is the hard way to do it...I dont think claiming mileage is the right way to go or is it??? thanks
  2. Mack

    Mack LawnSite Member
    Posts: 80

    Hey Kitzy I was told that I have to keep track of my fuel for the mowers but not the truck since I claim the miliage which is more then the fuel. We get something like 27 cents per mile and I put alot more miles on my truck, then what I spend in fuel. I hope this makes sence.
  3. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    Mack....27cents per mile seems rather low ...I thought that number was like 40plus cents per mile??
  4. Mack

    Mack LawnSite Member
    Posts: 80

    Hey Kitzy I think your right I just got up and have not had my first cup of coffee.
  5. MOW ED

    MOW ED LawnSite Fanatic
    Posts: 5,028

    I keep all slips and keep track of mileage also.
    Gas, repairs, maintenance, license, taxes, insurance , all add up. Keep track of both and let the accountant sort out the rest.
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    We do it the same way as you do Gary. It may be the hard way, but in case we're audited, I like to have all the receipts to prove everything.

    Secondly, the thing about using a per mile deduction is ok if you can prove unmistakeably that the vehicle is only being used for business purposes. Otherwise, you have to separate how much is being used for business and how much for personal.

    I'm no accountant (my brother is though) and that's how he kind of explained it to me. Hope that helps.
  7. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    The reason you keep track of the fuel for the mowers only is because the gas for the mowers is not subect to certain taxes because they are not used on the roads.
  8. scott's turf

    scott's turf LawnSite Senior Member
    from NH
    Posts: 949

    I believe that it pays to have a truck just for your business and take the full write off. $.40/mile doesn't go far on these gas guzzlers. If you figure 15 mi/ga and $1.50/ga then that is $.10/mi right there. Now you have to figure in the cost of the vehicle, insurance, and maintenence. Maybe if you put lots of miles on per year it would be worth it. If you are in doubt do it both ways and take which ever is the better write off.
  9. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Mileage rate is 36.5 cents per mile.

    You can take the higher of actual expenses or milege, subject to certain limitations.

    You have to keep track of actual expenses to determine which is higher.

    Also, whichever method you use, you just get the expenses for the business use. If you use actual expenses and business use is just 75% of the use, you will take 75% of the expenses.

    Check with your accountant for more info.
  10. Turtle II

    Turtle II LawnSite Member
    Posts: 152

    What if you use one credit card account for all auto expenses???

    All gas, maintenance, repairs, tags, etc.........

    At tax time you can tally up your 12 monthly credit card statements............

    I'm still a newbe, but I was pondering this idea, it sounds better then saving a million receipts.......

    Hope everyone is doing well,

    Turtle II:cool:

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