Good evening all, new member here and have a question! I was thinking about taking a loan out of one of my 401k accounts to buy a truck, can you write that off on your taxes? It is a “loan” but to myself? I will be talking with my accountant this wk about it also. Thank you for any help.
Truck purchase deductible on taxes?
Discussion in 'Trucker Taxes and Truck Financing' started by Brewcrew, Dec 21, 2024.
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I tell people this, never use money you can't afford to lose.
Do not use retirement, do not use your home's equity or borrow against it.
To answer your question, you can't write off the loan but you can write off the depreciation.
If your accountant is worth any thing he/she will tell you alternatives.wis bang, Oxbow, AModelCat and 1 other person Thank this. -
TX2Day, Rideandrepair, Speedy356 and 1 other person Thank this.
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As I understand it you can borrow from your retirement to purchase whatever you want. The interest question I'm not sure. Would be a question for your accountant. Main thing if you did default on the note you would have to pay penalties plus income taxes on money borrowed.
Rideandrepair Thanks this. -
I personally would never pull money out of retirement unless you are at the age where you won’t get hit with fees and penalties.
TX2Day, wis bang, Rideandrepair and 1 other person Thank this. -
I am a company driver now, just ready to get in my own truck! I do understand about borrowing on retirement accounts I have done it before and would rather pay myself back the interest vs the banks. Just never borrowed for this type of situation.
Why?
I have the cash to purchase the truck, but I don’t feel comfortable not having much cash left to operate on until my first settlement comes through.Oxbow, BoostedTeg and Rideandrepair Thank this. -
Yes I’ve already talked with my company about leasing on with them as an owner op, they’re just waiting for me to purchase the truck.
Ins quotes
Yes I’ve got ins part all lined up for the purchase.
Borrowing retirement
Yes they say not to do it but I have done it before and has worked well for me!Rideandrepair Thanks this. -
Cash before your first settlement?
look you need at least $70k in liquidity outside the truck itself, especially in this economic climate. We have a high capacity still, it needs another 15% gone before rates are going to go higher but I am seeing more and more marginal operators coming on and pushing rates down.TX2Day and Rideandrepair Thank this. -
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Talk about a disaster in the making.TX2Day, Rideandrepair and Speedy356 Thank this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
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