"It's a tax write off"?

[stephen4785]

Iv heard people say this for years and Iv never quite understood what they're "writing off". Iv been looking into starting my own business and I would need to buy a work truck. I have a Tax id and dba so Im assuming I could claim the truck/fuel/maintenance under the company but Im not sure how I could use it to save money in the long run? And if Im making payments on the truck do I just claim te amount Iv paid so far or the entire amount?

[Sleeper]

Everything and anything i can relate to my farming i do. As you will be self employed you will learn that we get taxed at a higher rate.

I mean everything, towels to clean my hands, lightbulbs, stupid crap, but its all legit. It just keeps your actual taxable income down. Since im married i get fucked even more.

[jakesford]

For a vehicle, to the extent it meets qualified business use you can take actual expenses and depreciation. In lieu you can use standard mileage rates which are published each year.

Be aware there are specific rules for listed property, eg things that tend to be used for personal use as well like a car or truck.

I'm assuming you are operating as self employed, or a single member LLC, if so this is reported on your schedule c. There are specific rules for capitalizing fixed assets and taking depreciation vs expensing them. Also if you take depreciation and later sell the asset you have recapture (additional income) to pick up.

TL/DR Hire a CPA and get ahead of your record keeping rather than playing catch up at tax time. A good CPA will teach you what to track vs charging you to go through your shoebox of receipts.

[Baba Ganoush]

Document every expense and keep every receipt.....for everything. I mean EVERYTHING.

Hire a CPA and get ahead of your record keeping rather than playing catch up at tax time.

....and this x1000

[John -- '02 HAWK]

putting advertising on the vehicle can also help change the status of personal to work related

[yellowstang]

Lyn has her own business and purchased a Transit Connect as a 100% business vehicle. Ask her, or do like we do and hire a CPA to file your taxes. We hand over a HUGE stack of receipts, broken down and tallied by month along with a backup of her Quickbooks stuff.

The first couple years tho, she did keep track of every car/truck related expense, mileage and turned that in for the CPA to deduct that stuff, as much as allowed.

Oh yeah, you could become a paid advertise and write that off!

[Back N Black]

Lyn has her own business and purchased a Transit Connect as a 100% business vehicle. Ask her, or do like we do and hire a CPA to file your taxes. We hand over a HUGE stack of receipts, broken down and tallied by month along with a backup of her Quickbooks stuff.

The first couple years tho, she did keep track of every car/truck related expense, mileage and turned that in for the CPA to deduct that stuff, as much as allowed.

Oh yeah, you could become a paid advertise and write that off!

What she doing?

[AdamLX]

Be very careful if you have a home purchase or refinance in your future. Your adjusted gross income will be used for qualifying. I've seen countless deals foall apart because someone got "creative" with their taxes only to find their actual income reported on paper was half what they thought.

[034V]

<-- writes off everything..

i even include the 10+k in rent and 900 or so in electric..

[dblack1]

Be very careful if you have a home purchase or refinance in your future. Your adjusted gross income will be used for qualifying. I've seen countless deals foall apart because someone got "creative" with their taxes only to find their actual income reported on paper was half what they thought.

Fantastic advice. I fall in this category. I also have a bank that will keep loans in house at a higher rate for residential personal realestate. Any other large expense you might incur will more than likely be business related

[FastFox]

I was self employed for 25 years. There ain't no free lunch.

[slow99]

<-- writes off everything..

i even include the 10+k in rent and 900 or so in electric..

Dayuuuuuummmm.

[Nash B.]

Does that bring back memories of San Francisco?

[TX_92_Notch]

TL/DR Hire a CPA and get ahead of your record keeping rather than playing catch up at tax time. A good CPA will teach you what to track vs charging you to go through your shoebox of receipts.

This.

I own a small business and my CPA has been invaluable. I met with him this morning to discuss a few things and he brought up things I never even knew to ask.

I'm actually buying a new SUV before Christmas and he had plenty to say about how to get the most bang for my buck when it comes to write-offs.

[YALE]

Form an LLC, dude. It's worth it. Fuck getting sued.