I bought my truck and trailer together and will soon have it payed for. I am depreciating it over 3 years which is what my loan was set up for. My question is, once its payed for am I better off running it a year or two payed for, or will taxes eat me alive with no depreciation. I know older guys who have had the same truck for years. Is that the way to go? What works for you?
Do you buy new truck or pay high tax after depreciation?
Discussion in 'Ask An Owner Operator' started by OldeSkool, Aug 19, 2019.
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I run local so fuel is around $900 a week, maintenance around $450 a month. I do most all my work myself.
My truck has been a good one, I kind of hate to see it go, but afraid of high taxes. Guess I should ask an accountant, I just wondered what y'all did. -
I can't see how a new truck depreciation is going to off set not having it. I think if the truck you have now is doing good and the maintenance costs stay low it would be worth keeping. I would get with a tax pro and crunch some numbers, but having paid for equipment is an awesome feeling.
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Everyone’s situation is different. If you make a lot with low expenses you may want to look at new. Or maybe a new trailer? Your accountant will be able to give you better information.
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Lots of things to off set taxes besides a new truck. Depending on you operation, yo can use a new pickup, buy or build a shop, another trailer, tools equipment, forklift etc. It does not have to be a truck.
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Don’t quote me because I’m just a trucker but I think real estate is different. I’ve heard of people building a shop and then their trucking company pays them rent and stuff. They could also be trying to hide stuff so who knows. Lol.
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I keep my trucks for years and years .
Cheaper to fix my old one than buy a new one in my book .
The thing I have found is the taxes you save aren't as much as you think and the taxes you will owe aren't nears as high as you think .
If the money I save in taxes won't make the truck payment every month then to me a new truck to avoid higher taxes makes no sense at all in my book .
Why spend 180,000.00 on a new ride to save 60,000.00 in taxes ?
Me I will pay the 60 and bank the 120 that I paid the truck maker .
Besides you never need to worry about wright offs in trucking .
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