Trucker Tax Preparation

A quick look.

Here is a quick overview.

50% Bonus depreciation under Qualified Small Business Jobs Act on Pre 9/9/10 purchases.

100% Bonus Depreciation under Qualified Small Business Jobs Act on Post 9/8/10 purchases

50% Bonus/Increased 179 in Go Zone or Disaster Areas.

IRS link
http://www.irs.gov/formspubs/article/0,,id=177054,00.html


The problem here that is at issue. Government can give a good write off for assets, BUT, if something happens or the vehicle is sold before the full write off period, They LOVE recapture and phantom income appears.

Unless someone will know for sure on the longevity of the asset, the potential life of the business and actual tax savings from the venture, it can be dicey.

I tend to look at each client and make advice directly to each one relevant to the saving involved.

I have a Lawn Care business for instance and they claimed they would keep assets for full life and all. Took the agressive stance and got the big write offs.

Heard from a good source that he stopped the business last year and sold some of the equipment. Never contacted me and has not to date.

Tax effect will be drastic and dreadful.

So, you can see how hard it is to give a good answer.