Payback for buying a truck pre LLC

There are a few ways to do it. The way I did it and check with a CPA since this may have changed or your local laws may be diffrent. Is i started as a sole proprietorship and simply transfered everything to the LLC later as owners startup contribution when it was formed and reimbursed myself. For taxes i got to duduct 5000ish then the rest after that was deprecation. I kept all my records and my CPA was able to file everything correctly.

I recomend ATBS for starting up. They have a whole process for it and helped me a ton when i got started. Cost i think $2000ish but the IRS would have cost way more.

 

If you paid interest on the truck that is tax deductible

 

Depends on how you filed your LLC tax status (sub-s, sole proprietor or C).

 

Get an accountant

 

You can keep track of all of your expenses and you should be able to move that into the LLC and your accountant should be able to figure that out for you, no big deal.

A lot of that is just rearranging numbers for your taxes.

But if you are a motor carrier, you don't pay sales tax on your truck.

I believe if you are leased on somewhere, you can use that motor carriers exemption so that you don't pay tax on your truck.

That part I'm not 100% certain about as far as being leased on, but as far as reimbursements and all that your accountant will be able to take care of that.

 

The sales tax thing depends on where you are. Some states have exemptions, some don’t.

 

MA does not, I smudged all my math out from my tears when calculating the 6.25% on a 220k truck…

oh and we get annual excise tax too

 

South Dakota charges 3% on every vehicle no matter what it is. It’s pretty common for people to figure the tax and finance it in when they get their big pickup. I don’t remember what the rate in Nebraska is, but you have to be a motor carrier or leased to a Nebraska carrier to get the exemption. I was leased to a carrier out of Minnesota when I got my current truck and that’s why it’s titled in South Dakota, 3% was less than whatever Nebraska was going to want.

 

I will repeat my comment

get an accountant.

Why?

because every situation is different, and they can set it up to recoup the start up costs.