Hi all fellow truckers, I am soon to be in the process of getting my own authority, I was looking into the benefits of leasing a truck such as, driving a new truck vs old, and write off benefits but my question is how much usually on your taxes would you recieve back if the truck payment is about four hundred per week, also gas me having to buy and pay for fuel up front as I am not signed onto a company, how much do u usually get off per gal. All of this would be on a truck that would gross about thirty five hundred a week, thanks for all help and replies!!
Write off's but how much back?
Discussion in 'Trucker Taxes and Truck Financing' started by Scuba Steve, Sep 1, 2009.
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Lease payments are an expense and fully written off as such. Purchase principle payments are not deductable, but, interest is. Purchased vehicles are depreciated based on useful life and that varies based on the age and condition of the vehicle. The amount of your tax benefit will depend on what particular tax bracket you are in. Some where between 15 and 38%. Depending on the actual form of business you choose can have effects on what is deductible and what is not.Last edited: Sep 1, 2009
Baack Thanks this. -
To answer the Q in the thread title: You reduce the cost of the write off by your tax rate. So if you are at 30% federal tax rate you will reduce the cost of the write off by 30%.
So a $100.00 write off will really cost you only $70.00.
The only time this is different is when the write off reduces your tax bracket. So the $100.00 write off reduces your tax bracket to 20%. Then it could conceivably return much more than the outlay. Say 10% of your total taxable income.
IMHO taxes generally will cost you less than a write off, 30% vs 70%. I never look make a write off unless it will reduce my tax bracket. There are enough involuntary ones. -
The Economic Stimulus plan also allows you to take an extra 50% off your Depreciation expense on purchase of equipment, this is something to take in consideration on purchasing.
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