without risk, there's no reward.

Nice!

So is the a brand new truck or used?

Just trying to figure out if it's under warranty or if you're on your own with the repairs?

 

You can do all that on a $45 a week road budget?

 

$0.90 + $0.48 =$1.38 x 3000 = $4140 @6 mpgs ~$4 a gallon is @$2000 fuel = $2140 net


$0.90 + $0.21 = $1.11 x 3000 = $3330 @6 mpgs ~$2.50 a gallon is $1250 fuel = $2080 net

Losing $60 bucks a week on cheap fuel.

 

Your disclaimer should read...This is not accurate tax advice.I am making stuff up to make my point valid.

A truck is a 5 year asset under the tax code. If you finance the truck, you don't get to take 20% of the payments as in your example for truck B. $110,000 truck at 5% int for 10 years is $1166/month. A) never finance an asset longer than it useful life. B) depreciation would be 20% of 110k for straight line (varies by method, will save for another post) plus interest expense.

You can only claim the portion of the lease payment for truck A that is ordinary. And you can only treat it as a lease if it meets the criteria of an operating lease. Most of which are TRAC leases used for off balance sheet financing and are very dangerous for the inexperienced. Otherwise it's a capital lease and must be listed on your fixed assets and depreciated accordingly.

If you think the IRS or any gov't agency is going to let you pay less under one financing structure over the other you need to put down the Kool- Aid. Given the same purchase price, term and interest rate. And barring any bonus depreciation from section 179. A financed asset and leased asset will arrive at the same deduction every time.

Sorry for the harsh disclaimer revision. It's satire, not a personal attack.

 

Part of the equation that hasnt been touched upon is the cost of fuel not just the drop in FSC. As fuel prices go down it is harder to find places to fuel that are as far under the national average. At JCT a lease driver only needs to concern himself with the cost per gallon. At a national average of 3.50 a gallon it is easy to find spots to fuel up in the 2.90 range, reducing his operating cost dramatically while still pocketing the higher fuel surcharge. With HawaiinThrivers' Hyper driving for effeciency he often times could get his fuel runs to be completely covered by the higher fuel surcharge when coupled with finding those sweet lower cost fuel stops. Increasing his revenue to the house dramatically. When the FSC/ fuel prices dropped, finding those deals become more of a .20 to .30 cpg under the national average and would have an adverse impact on his take home. Best of luck at A and A Brah!