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06/24/2007 11:59:41 PM · #1 |
If I use my truck for my business, but also use it for personal use, can I write off my truck payments as a business expense...or is there some percentage somewhere that I have to know of?
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06/25/2007 12:06:08 AM · #2 |
You could probably lease your truck to the business and write that off, but I doubt anything could be tied directly to the payments you are making on the truck.
But if you are driving both for personal and for business use, then you should definitely keep a written log of the mileage you drive for the business. Start with a log of how many miles you have now. Then on every business trip (even short trips across town to pick up business supplies) log the odometer readings (start, finish, mileage). The IRS likes to see written records to back up your business usage.
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06/25/2007 12:06:48 AM · #3 |
I believe you'd have to use a percentage.
Just like if you have an office in your home. Say your home is 1000 sq/ft and your office is 100 sq/ft of that. That'd be 10% towards your business write-off. Do the same with your payments.
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06/25/2007 12:14:20 AM · #4 |
| it all comes down to mileage, and in my experience (since '87), it has always worked out that the mileage deduction gave me the biggest bang for my buck. regardless, you have to keep a mileage log. |
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06/25/2007 12:23:24 AM · #5 |
OK good call...
I'm going to keep a little log in my center console and just record all the different trips I make. That makes a lot of sense.
Thanks. |
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06/25/2007 12:45:55 AM · #6 |
| For a vehicle you can either write actual costs off or take mileage. It really muddies the water if you try to separate personal Vs business. Also If you call it a business car you will have to depreciate it and then if and when you sell it you will have to work capital gains etc. I've done this extensively and it's almost always better to take mileage. Keep a daily log. The deduction for mileage more than covers actual expenses. Much less bookkeeping this way. I would never try to turn a personal auto into a business or part business ... just too messy. |
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06/25/2007 12:53:04 AM · #7 |
Hire. An. Accountant. :D
Audits are expensive more than the accountant. The line is narrow and has everything to do with your records and the percentage business/personal. IRS loves to audit that kind of thing because most people keep crappy records.
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06/25/2007 12:57:52 AM · #8 |
True an accountant is a good cover your back. BUT if you use mileage it has nothing to do with percentage of business Vs personal use. All that matters is keeping a log of mileage as you drive. Nothing else is required.
Originally posted by idnic:
Hire. An. Accountant. :D
Audits are expensive more than the accountant. The line is narrow and has everything to do with your records and the percentage business/personal. IRS loves to audit that kind of thing because most people keep crappy records. |
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06/25/2007 01:17:49 AM · #9 |
Originally posted by idnic:
Hire. An. Accountant. :D
Audits are expensive more than the accountant. The line is narrow and has everything to do with your records and the percentage business/personal. IRS loves to audit that kind of thing because most people keep crappy records. |
They're welcome to audit me any time they want. I'll hand over a printed sheet of all my expenses to date, with the dates, amounts, account type, and reasons for expense...Then I'll give them a printed sheet with all my completed invoices...
Then I'll hand them two big boxes...one with receipts thrown in it, one with invoices...and of course my truck mileage log. They can sort it out however they wish. |
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06/25/2007 01:24:45 AM · #10 |
Be sure to keep receipts.
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