Lease purchase

The amount paid in lease payments is 100% deductible. Factor that into " how much you paid". He may want to trade in or run with no truck payment. I read more O/O's saying they will rebuild their truck rather than deal with all the new EPA emissions, regen etc.

 

WAIT! Deductible on taxes? You deduct (random number here) 36,000 dollars year in lease payments on your truck with taxes? What?

 

I just can't see paying $160k for a truck that was valued at $110k when the lease began. Deductible this or that has nothing to do with what I'm trying to get at.

 

Lease payments are deductible same as if you rented a truck.
I wouldn't pay $160 K for a truck worth $110K. What it's worth at the end of the lease depends on what it is for example: a Cascadia or a 389 EXHD same year, same motor. Much higher value in the Peterbilt.

 

Sounds like "lease seminar talk". Did they also tell you should offer 20% more then the list price of a home because "you really like the pool"? SMH

 

That doesn't sound correct....

 

STexan, No one told me anything like that.

 

Ask you tax person. That's why people will lease a truck, turn it in after the lease period and get a new one. Lease purchase for me was because I wanted to own the truck, run without truck payments. If you have a good truck and maintain it, you can make good money. And still depreciate the value after lease portion is completed

 

Just googled it. I learned something new today. A lease purchase is 100% tax deductible.
Is a normal lease not deductible then?

 

I don't understand why a person would lease (or "lease purchase") a tractor and then run exactly like a company driver. if the wages are equivalent (l/p vs. company), wouldn't it make sense to just save your pennies as a company driver and then buy a truck? I completely understand the dream of owning your own business (I own a small one completely unrelated to trucking), but owning your own business should be about the freedom. Take Schneider's Choice program, for instance. It seems like a decent place to earn a respectable living if you are willing to work and make smart choices. BUT...you're handcuffed by the company's rules.

A true Owner Operator is the one who had the nuts to take the ultimate risk. And therefore he/she reaps the ultimate reward - freedom of owning/running your own business.

Just my opinion, of course. No disrespect to anyone that leases.