using work truck as personal vehicle

Discussion in 'Starting a Lawn Care Business' started by DannyLot, Dec 7, 2012.

  1. ted putnam

    ted putnam LawnSite Platinum Member
    Posts: 4,531

    You are probably right...and I may have to take that up with the IRS at some point. I have a Tax professional that does my payroll and income taxes monthly and annually. I keep all fuel receipts and give her end of year mileage on all vehicles so she has both to compare. These trucks are on official business over 99% of the time. If the IRS would like to tax me for that < 1% time that they aren't, I say go for it. I promise you, I'm not worth their trouble and I think they know that. They've got "bigger fish to fry" and haven't been concerned with it up to this point. Maybe it's because I pay my taxes and run things on the "up and up" for the most part. I figure that is the best way to avoid throwing up "red flags". We put 10-12k miles on these trucks per year and that is exactly what I report. If at some point they would like to challenge that, I will be waiting for my slap on the hand for not keeping a vehicle log.

    To the OP:
    If you want to have a business vehicle and a separate vehicle for personal use, I would have the business vehicle be the nicer of the 2. You will be seen at least 8 hrs a day in that vehicle. That vehicle is an important part of your business image and plays an important role in how customers and potential customers perceive your business.
     
  2. kyles landscape

    kyles landscape LawnSite Senior Member
    Posts: 331

    Haha off topic for the guys who are too lazy to unhitch. The truck come on....try un hitching every day and loading and unloading the entire trailer now that sucks!
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  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    You're supposed to keep mileage logs either way. Most guys only find out about that at an audit.
     
  4. jackal

    jackal LawnSite Senior Member
    Posts: 489

    I use two trucks. Work truck is an 02 silverado in perfect condition, I seldom unhook it, just back the whole rig in the garage. Personal is a 2012 silverado still a little to perfect to work or hunt out of.
     
  5. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I'm afraid you don't know how an audit works. An IRS auditor doesn't have to disprove anything. At the start of the audit it is presumed that every deduction that you took is falsified and you have to prove each and every one if the auditor desires. If you can't prove something then they use industry standards as their benchmark. That usually doesn't work out real well for the person being audited. :laugh:
     
  6. kyles landscape

    kyles landscape LawnSite Senior Member
    Posts: 331

    I've got a question for you guys saying the write off you need 2 vechiles to completly write one off

    Say I'm married I have 2 work truck (1 is mostly personal but saying work truck) and my "wife" has a car, can I put her car in as my "personal vehicle" and write off the other 2 trucks 100 percent?
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  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I'd have to look again to be 100% positive, but I think that once you establish a vehicle as either personal or commercial as it relates to the company, it must stay that way for the duration. In other words, you can't keep flipping back and forth to gain a tax advantage.

    If you have a truck that you've been taking a mileage deduction on, you can't change it to a depreciated status now.
     
  8. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

  9. Darryl G

    Darryl G LawnSite Fanatic
    Posts: 8,033

    I think you can as long as your wife's car is reasonably available to use. I don't think it specifies you have to have your own car, just one available. I think it's all in the instructions to that worksheet.

    The whole thing is a little complicated. For instance, if you have a remote shop location, the mileage driving from your home to your shop is not considered a business deduction...that is a personal commuting expense.
     
  10. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    true there's nothing wrong with financing but there's nothing wrong with having money up front for things either.

    I personally never purchase business items unless I have 100% of the money up front. all equipment has always been paid for 100% up front. that includes my truck and trailer to the mowers and handhelds and anything in between.
     

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