New to this, O/O, is the truck an expense?

Discussion in 'Trucker Taxes and Truck Financing' started by TresParlor, Aug 13, 2018.

  1. TresParlor

    TresParlor Bobtail Member

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    Ok, so I've recently bought a truck flat out (no payments), and become an o/o....and now I'm learning about all the tax laws pertaining to drivers. My question is, since I'm now my own business, does the amount I paid for my truck count as an expense, and lower my tax liability?
     
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  3. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    You need to talk to a cpa asap. They can tell you what you need to know. You should have did this before you bought the truck. Truck tractors are an asset that you depreciate over time. Again, talk to a professional now.
     
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  4. STexan

    STexan Road Train Member

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  5. Ridgeline

    Ridgeline Road Train Member

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    You should have thought about this before you even considered buying a truck.

    Get an accountant who can fix things up for you and explain what depreciation is and how it works.

    Oh and to answer your question - NO.
     
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  6. Oldironfan

    Oldironfan Road Train Member

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    Yes.
    And you need to hire a mechanic as well. To repair or swap engines, and such. Also a tax liability deduction.
     
  7. JoelP

    JoelP Bobtail Member

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    Quick answer is yes, the cost of the equipment will lower your tax liability. But longer (and more correct answer) as @kemosabi49 said is to talk to your tax professional ASAP. You’ll save multiples in taxes over whatever you pay your tax advisor if done correctly.
     
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  8. bullhaulerswife

    bullhaulerswife Forum Leader/Admin Staff Member Administrator

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    The truck is a depreciable asset. And you can take those deductions over time, or all at once to lower your liability. Like the others said, you need an accountant or tax person to advise you on how to deduct that. Its best to get advice for long term filing, knowing which way is going to benefit you the most.
     
  9. Ridgeline

    Ridgeline Road Train Member

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    I got an email about my post, so you guys are right by explaining it but the question was about it being an expense, which I said no. So he can't write it off as an expense, as bullhallers said it is a depreciated asset.

    Yes I am being difficult today by taking everything literally.
     
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  10. TheyCallMeDave

    TheyCallMeDave Heavy Load Member

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    It amazes me how folks will just straight up buy a truck without the faintest idea of what is going on, especially when it comes to things like tax related business. I have plans to potentially buy a rig down the road, and for the life of me I can't figure out why someone would buy such a thing without crossing their T's and dotting their I's so to speak. I won't even THINK of going to look at trucks until I have ALL of my bases covered. But yet, you see people coming on here after financing or buying a rig outright, asking questions that you would think would be covered before that process every began. That's like deciding to open up a mechanic shop and planing on doing the work yourself, without having ever turned a wrench. Can you imagine? "Hey everyone, just bought a shop and I'm the only mechanic, got my first transmission swap in today, but first off, how do I got about changing the oil?" Talk about putting the cart before the horse. I hope it all works out for you OP.
     
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  11. Ridgeline

    Ridgeline Road Train Member

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    Many think we are living in 1987 and it is just about getting a truck, getting it licensed and making the big bucks.

    This is a new world, it is one where the owners of the past are going away and that may be quickly. I don't mean with ELDs or anything like that but because the business models that people are using are not going to adapt to the new technology that will be used within the market.
     
    Rideandrepair and TheyCallMeDave Thank this.
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