Truck purchase deductible on taxes?

I wanted to refinance my house since I have 250k in equity, loan 100k to my LLC at 6% interest and after 3 years get a business loan to pay off the remaining balance. I don’t know how else to finance restarting my owner operator business working where I do now for someone else. The only debt I have now is the mortgage. Vehicles paid off and no cc debt.

 

I’m in a similar situation. I refuse to borrow against my equity. The house prices may fall. They’re at an all time high now. Add the idea of spending the money on a depreciating asset. Not worth it to me. It’s so easy to justify co mingling personal and Business assets. I’ve done it. The Business provided funds to purchase assets. Now it’s time to use assets for the Business. It’s a trap. Keep what you’ve acquired. Don’t risk losing equity. The potential for losing all the progress you’ve made is very real, and happens very fast in Trucking. Just my 2 cents. I’m working my crappy little local gig for now. If I can get back up and running without using profits from my house, I will. Otherwise I’m hanging onto what I already do have. If the Truck can’t support itself and provide a decent living. It’s not worth having.

 

I don’t have a fear of losing my house. I don’t foresee selling it either, so other than for equity it doesn’t matter much what the house it worth. I actually wish it’d drop in value so my #### property taxes would drop (ha ha good one).
Where I work now is a dead end especially since it’s a union job. No chance for advancement and they pay just enough to get by while taking 18% for themselves. If I have to go back over the road I’d rather do it for myself so I can actually accomplish something again.

 

I would consider the loan amount. Can you make both payments working for someone else? If not, it’s a risk. Heloc’s are currently around 8.5-10%. Personally I would get a heloc, if anything, and only draw enough for a down pymt. plates, down pymt on insurance. Let the Truck repay it. Have more available if needed. You will know soon enough if you’re on the way towards sucess or failure. The key is to quit before you’re strapped with another $100k of debt secured by your house. The payment will be over $1000 per mo. Probably close to $1200. It’s easy to get in a jam. The only choice will be a new mortgage, combining both together. The Mortgage company will love you. The house will never get paid off, unless you sell. That’s my current potential choices. I’ve tried and even succeeded doing things unconventionally. But the risks are real. Something like a major accident can put a stop to income, and everything goes south. Been there once. This time I’m doing things the old fashioned way. Lol. Too old to rebound from a financial disaster bigger than the one I currently have. All I’d need is about $30k. I have $180k equity. Still not worth it. Borrowing $100k against my house. No way!! Might as well sell it now. Buy another in a couple years when prices and interest rates drop.

 

Taking money out of home equity to fund a trucking venture is absolutely nuts. Even for a guy with previous trucking experience.

With the current market and driver pool ( which is the WORST I've ever seen in 18 years ) the thought is just nuts. This industry is straight 3rd world!!!

 

I could probably do it with $60k if I rent a trailer and not pay insurance in a lump sum, was just giving myself some operating money and extra in the inevitable event of a breakdown.
Doing it how I planned was $25k for the truck (old pre emission that I can fix myself), $25k for a 53’ flatbed, $10,500 for insurance (already got the quote $875/mo), $5000 for plates plus misc taxes and such. I wouldn’t pay myself much until the loan was repaid, just enough to cover my personal bills. Figuring the numbers I could still make money at $1.60/mile average which is pretty low.

 

LOL. Bro, it's 2025... Everyone wonder's what's wrong with trucking... Here it is, the mathematician will figure a $1.60...

Unreal!!!!!!!!!!!!!!!!!!!!!

 

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