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taxes miles or what

Discussion in 'Business Operations' started by bob21, Jan 6, 2003.

  1. bob21

    bob21 LawnSite Member
    Messages: 18

    how many miles can you write off and what is the pay back of it also anything else that i should know that would help me out at the end of the year i have a cpa and all that good stuff but not really sure how i want to go about it.

  2. hosejockey2002

    hosejockey2002 LawnSite Bronze Member
    Messages: 1,195

    You can deduct either miles driven or actual vehicle expenses. Let your CPA determine which is more lucrative for you. The key is to keep track of everything vehicle related. If you use miles driven, you need to know the starting and ending mileage for the vehicle for the year, and possibly the percentage of business use, if the vehicle is not business use only. You should also keep all receipts for gas, maintenance, etc. Give everything to your CPA and he/she will be able to figure out what works best for you. Good luck.
  3. For us it was a nobrainer all the trucks depresiation and actual expenses were way more then the standard milage rate.
  4. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    me too...actual expenses were better than using mileage rate..keep in mind most of our trucks pulling trlrs get horrendous gas mileage...Here we go but I'll say it anyway....my Ford gets 9mpg.
    Love my Ford but Ford = F ix O r R efuel D aily..please now now no Chevy/Ford/Dodge debates...lol
  5. beck

    beck LawnSite Senior Member
    Messages: 453

    It depends on what types of truck(s) you plan to run. If you want the nice new shiny $40,000 you better use the actual expense method. If you plan to stay with older work trucks for $10,000 or less you will want to do some calculations on expected mileage to be driven and probably decide on the standard mileage rate.

    My first year i had approximately 10,000 in actual expenses between ins, payment, fuel and maint. I had a 60/40 split between business and personal use, respectively. If I had chosen the actual expense method I should have been able to deduct $6000. To use even numbers lets say I drove 20,000 miles(12,000 business) that would amount to $4,080 at $0.34 per mile. So in this case I lost approximately $1900 in deductions. To come out even you would need 17,647 miles to recoup the the $6000 for business use.

    Check with your CPA, but i believe once you choose a method you must stay with that method, until you have two or more trucks operating at the same time, which is when you must use the actual expense method.
  6. bob21

    bob21 LawnSite Member
    Messages: 18

    i have 2 lawn trucks and 2 plow tucks and it comes out with more mile as far as cash flow gose didnt have alot of fixes just alot of miles thanks

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