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Depreciate Travel Trailer and Tow Pickup?

Discussion in 'Oilfield Trucking Forum' started by tompetty69, Mar 3, 2015.

  1. Mar 3, 2015 #1
    tompetty69

    tompetty69 Light Load Member

    108
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    Jan 9, 2015
    TX Panhandle
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    I am an oil hauler and am debating on buying a travel trailer and big diesel pickup for towing to and living in another area where rates are higher. I would still own my home so think I could justify the trailer and pickup strictly for business. I am wondering if rigs such as that could be fully depreciated and written off your taxes if used solely for living in those areas to haul oil. I know that flow hands, etc. can get buy with it as they stay in the trailers on locations and also deduct their pickups used for towing, buying groceries, supplies, etc. But the difference is that they are required to stay on the location and I am not required to be in that area. I debated on putting this in the tax section, but wasn't sure people could relate to it if they haven't seen or been around all the oilfield hands staying in trailers. I never have used a tax man or would have asked them.

    I have never deducted anything on a pickup other than the mileage deduction for business use. Years ago I was told that you couldn't justify writing off everything on a pickup with the IRS if you only had one truck, although I know people who do it. But, this would be a little different deal.

    Does anyone have any knowledge on this issue or heard if guys in similar situations are doing that?
     
    tompetty69, Mar 3, 2015
    tompetty69, Mar 3, 2015
    #1
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  3. Mar 3, 2015 #2
    315wheelbase

    315wheelbase Heavy Load Member

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    Oct 26, 2014
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    You would not ask for brain surgery help from truck drivers would you?

    Suggest you see a good CPA in an accounting firm for tax information,,get a good firm with several CPAs not a one man CPA firm.Wrong info can cost you thousands of dollars.
     
    315wheelbase, Mar 3, 2015
    315wheelbase, Mar 3, 2015
    #2
  4. Mar 3, 2015 #3
    cnsper

    cnsper Road Train Member

    5,869
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    Feb 28, 2014
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    Just get a 5th wheel and pull it with your tractor. Don't buy a "big diesel pickup" no need to impress everyone else just because. You should see all the stuff for sale in Williston and surrounding areas now.
     
    cnsper, Mar 3, 2015
    cnsper, Mar 3, 2015
    #3
  5. Mar 3, 2015 #4
    ironmule

    ironmule Light Load Member

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    Nov 4, 2011
    PNW
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    + 1 On a GOOD CPA Curious as to where rates are better? because they getting chopped to hell in the Bakken.
     
    ironmule, Mar 3, 2015
    ironmule, Mar 3, 2015
    #4
  7. Mar 3, 2015 #5
    chalupa

    chalupa Road Train Member

    3,757
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    Jul 22, 2010
    Houston,Texas
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    See the CPA for sure but I know you can deduct the interest off the trailer as second home. I'm equally sure that you can't also depreciate the trailer at the same time so depending on your situation the CPA would decide the better course of action.

    It's not just Bakken either........Permian rates are falling like a rock too trying to stay busy. We have roustabouts billing $90 / hr now, down from $126. Welders are $60 to $70 and no more travel time. It's getting very soft here.

    Good luck
     
    chalupa, Mar 3, 2015
    chalupa, Mar 3, 2015
    #5
  8. Mar 3, 2015 #6
    tompetty69

    tompetty69 Light Load Member

    108
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    Jan 9, 2015
    TX Panhandle
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    Pulling the 5th wheel with the big truck definitely makes sense. I hadn't thought of that.

    Have Permian rates dropped on the oil haulers? I haven't seen that around here yet.
     
    tompetty69, Mar 3, 2015
    tompetty69, Mar 3, 2015
    #6
  9. Mar 3, 2015 #7
    Arky

    Arky Heavy Load Member

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    Jun 7, 2013
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    Definitely talk to a cpa. like you said, the flow hands and are likely in a completely different scenario tax wise. You can pretty much file your taxes any way you want or any way somebody else tells you that they are doing it. That doesn't mean that the IRS will accept it though. Given a choice, I would prefer the one that keeps me off their radar.
     
    Arky, Mar 3, 2015
    Arky, Mar 3, 2015
    #7
  10. Mar 4, 2015 #8
    Wymon

    Wymon Light Load Member

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    Jan 13, 2013
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    I have been living in an RV and working in the oilfield since 2010, first in Wyoming/Montana and now SE New Mexico (my home is in Central New Mexico). I found that IRS set the bar pretty high for deducting my RV and even higher for deducting a tow vehicle, especially since I tow mine with my everyday pickup. Like Arky said, check with a CPA because there are a lot of variables and pitfalls.

    Good Luck
     
    Wymon, Mar 4, 2015
    Wymon, Mar 4, 2015
    #8
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