Can I Deduct Depreciation on a Lease-to-Own Semi Truck?

**Roadmedic** · 02.02.2012

Originally Posted by flight379

I'm just thinking that depreciation would give you more flexibility. You could accelerate via section 179 if needed.

It can and it can also bite you in the rear if not kept for the entire period.

Many things must be considered in the tax planning. Not just an instant write off.

Certain expenses also need to be reviewed in planning as well. It is not always best to expense and item and risk on an audit. If audited and found, it must be capitalized and you lose the option of taking any 179 deductions.

Like I stated, it depends on the wording of their lease and the obligation.

**fireba11** · 02.03.2012

Originally Posted by Roadmedic

Think about this a little.

You are writing off the entire lease payment each month.

After the lease is completed, are there any additional payments?

If not, then you cannot depreciate the truck since you wrote it off by lease payments.

True but I do not own the truck till the title is in my name, therefore there should be some depreciation aloud I would think.

On a regular loan the title is in your name and the bank is listed as the lien holder therefore you can only take depreciation.

**Roadmedic** · 02.03.2012

Originally Posted by fireba11

True but I do not own the truck till the title is in my name, therefore there should be some depreciation aloud I would think.

On a regular loan the title is in your name and the bank is listed as the lien holder therefore you can only take depreciation.

As I stated, the lease determines it.

If you have a balloon payment at the end, this amount is depreciable.

**Admin** · 02.03.2012

Posts moved. A little off-topic for the Lone Mountain thread, but feel free to continue the conversation in this thread.

**fireba11** · 02.03.2012

No it is a Lone Mountain lease so no baloon payment at the end.

**Roadmedic** · 02.03.2012

Originally Posted by fireba11

No it is a Lone Mountain lease so no baloon payment at the end.

I have no idea what a Lone Mountain lease looks like and as such have not read one.

If you are making monthly lease payments and then the truck is yours at the end of the lease, then you have purchased the truck.

You could be in the position of a captitalized lease and that would mean a contractual obligation for the payments. In addition, the truck could be set up for depreciation under that method.

Payments on the lease then would not be a deduction.

So, until I would have the time to review in detail, I will state it depends on the lease.

**revelation1911** · 02.03.2012

Originally Posted by Roadmedic

I have no idea what a Lone Mountain lease looks like and as such have not read one.

If you are making monthly lease payments and then the truck is yours at the end of the lease, then you have purchased the truck.

You could be in the position of a captitalized lease and that would mean a contractual obligation for the payments. In addition, the truck could be set up for depreciation under that method.

Payments on the lease then would not be a deduction.

So, until I would have the time to review in detail, I will state it depends on the lease.

You're buying the truck from what I gather.
http://www.lonemountaintruck.com/