Truck Depreciation

You depreciate the actual price you paid.

 

I wanna know how depreciation works how much do you take of on your taxes every year.

 

There are a couple of ways you can depreciate equipment. If you go to the irs website you can find the schedule for depreciation. Do a search for irsforms. You should find what you are looking for on their site.

 

Since you want to know, here is the publication on it.

Have fun reading it.

It is quite the reading with no plot.

http://www.irs.gov/publications/p946/ch04.html

 

Got a call and left and forgot to check it.

 

I'm going to buy a new truck. A friend of mine was telling me it would be better to buy it before the end of 2012 to take advantage of 2010 Tax Relief Act. I hadn't planned on buying until mid 2013 but if there is a distinct advantage to buying this year I could make it happen. Does any one have any thoughts on the matter? Thnx

 

You can qualify for bonus depreciation on purchases of new equipment (50% of the price in addition to the normal depreciation). However, you cannot use this for a tax loss. I guess it depends on how good of a year you had whether the timing would be right. I'm really not sure if this provision is due to expire next year though.