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Question for you tax gurus #1606914
01/12/16 12:32 AM
01/12/16 12:32 AM
Joined: Dec 2006
Posts: 5,018
Mt. Olive
Sharpshooter69 Offline OP
12 point
Sharpshooter69  Offline OP
12 point
Joined: Dec 2006
Posts: 5,018
Mt. Olive
What are the pros and cons, or the requirements of claiming a vehicle purchase on your income tax return. I bought my truck specifically to work out of, but I do not own my own business. I had to have a vehicle to haul my travel trailer, and haul my equipment to and from job sites. Any advice is appreciated.


The only thing necessary for the triumph of evil is that good men do nothing.
Re: Question for you tax gurus [Re: Sharpshooter69] #1606926
01/12/16 02:01 AM
01/12/16 02:01 AM
Joined: Sep 2004
Posts: 2,777
Athens, GA
W
WildlifeBiologist Offline
10 point
WildlifeBiologist  Offline
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Joined: Sep 2004
Posts: 2,777
Athens, GA
Pros: can lower your tax liability. Cons: record keeping can be a headache. Spend $70 and get TurboTax for Home & Small Business. It will guide you through tax deduction scenarios and may help you find deductions you have not thought about.


Micah 6:8
Re: Question for you tax gurus [Re: Sharpshooter69] #1606981
01/12/16 03:31 AM
01/12/16 03:31 AM
Joined: Dec 2009
Posts: 9,519
Trussville
T
toothdoc Offline
14 point
toothdoc  Offline
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Trussville
You should still be able to deduct, but you will have to log your miles. There are some apps you can use to log miles.

Re: Question for you tax gurus [Re: toothdoc] #1606984
01/12/16 03:34 AM
01/12/16 03:34 AM
Joined: Sep 2006
Posts: 2,685
West Florida
westflgator Offline
10 point
westflgator  Offline
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Posts: 2,685
West Florida
Originally Posted By: toothdoc
You should still be able to deduct, but you will have to log your miles. There are some apps you can use to log miles.


Cashbook is a good one for keeping up with all your business expenses including mileage. I think it's a $4 to 5 app. It will automatically backup to the cloud if you set it up that way as well...

I'm not a CPA but I believe you have to decide whether you're going to count actual expenses, or if you're going to count mileage? I don't believe you can count both. Another question your CPA (if you use one) will ask...do you have another vehicle for personal use? If not, then you won't be able to count off 100% of the mileage or expenses but only the percentage that you use for business, which requires the keeping of records as mentioned by Toothdoc above.

Re: Question for you tax gurus [Re: Sharpshooter69] #1607004
01/12/16 04:06 AM
01/12/16 04:06 AM
Joined: Jun 2013
Posts: 1,063
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BibbHunter Offline
6 point
BibbHunter  Offline
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Joined: Jun 2013
Posts: 1,063
I believe you can deduct actual expenses for the vehicle or take the mileage rate, so you will need to decide which you think will be the larger deduction. You still need to keep a mileage log either way for documentation.

Re: Question for you tax gurus [Re: Sharpshooter69] #1607009
01/12/16 04:11 AM
01/12/16 04:11 AM
Joined: Dec 2009
Posts: 9,519
Trussville
T
toothdoc Offline
14 point
toothdoc  Offline
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T
Joined: Dec 2009
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Trussville
If your job requires you to use your own vehicle, there are some obligations they have to pay you mileage. I know if we send a staff member from one location to another, we have to pay them mileage.

Re: Question for you tax gurus [Re: Sharpshooter69] #1607015
01/12/16 04:16 AM
01/12/16 04:16 AM
Joined: Nov 2007
Posts: 249
Decatur, AL
C
Chris4x4Gill2 Offline
4 point
Chris4x4Gill2  Offline
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Joined: Nov 2007
Posts: 249
Decatur, AL
The company has NO obligation to pay mileage unless it is their policy. If you are reimbursed mileage by your company you can not take a deduction for that mileage. If you are not reimbursed, you can take it as an Itemized Deduction on Schedule A.

Commuting mileas are not deductible.

https://www.irs.gov/taxtopics/tc514.html

Re: Question for you tax gurus [Re: Chris4x4Gill2] #1607132
01/12/16 05:56 AM
01/12/16 05:56 AM
Joined: Sep 2006
Posts: 2,685
West Florida
westflgator Offline
10 point
westflgator  Offline
10 point
Joined: Sep 2006
Posts: 2,685
West Florida
Originally Posted By: Chris4x4Gill2


Commuting mileas are not deductible.

https://www.irs.gov/taxtopics/tc514.html


Unless you are working out of an office in your home, then the mileage associated with going from your home to a business/work related function would be deductible, but not the mileage from your home to a regular office not located in your home...

Re: Question for you tax gurus [Re: Sharpshooter69] #1607134
01/12/16 05:56 AM
01/12/16 05:56 AM
Joined: Dec 2007
Posts: 4,134
alabama
B
BigEd Online content
10 point
BigEd  Online Content
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Posts: 4,134
alabama
If your company reimburses mileage at a rate less than what the government pays then you can take a deduction on the difference.

Re: Question for you tax gurus [Re: WildlifeBiologist] #1607324
01/12/16 08:43 AM
01/12/16 08:43 AM
Joined: Dec 2006
Posts: 5,018
Mt. Olive
Sharpshooter69 Offline OP
12 point
Sharpshooter69  Offline OP
12 point
Joined: Dec 2006
Posts: 5,018
Mt. Olive
Originally Posted By: WildlifeBiologist
Pros: can lower your tax liability. Cons: record keeping can be a headache. Spend $70 and get TurboTax for Home & Small Business. It will guide you through tax deduction scenarios and may help you find deductions you have not thought about.


I get reimbursement for mileage, and yes I have another personal vehicle. The truck is used as my work vehicle. My travel trailer is also only used for work. That's why I bought both of them.
I'm an independent contractor. I work for several different companies at different times. Sometimes the jobs last a month, sometimes over a year. (Gas and oil industry).
My main question is, can I use the price I paid for my truck, and upkeep, tires, oil changes, etc, as some type of deduction ? I know mileage is out of the question.

Last edited by Sharpshooter69; 01/12/16 08:49 AM.

The only thing necessary for the triumph of evil is that good men do nothing.
Re: Question for you tax gurus [Re: Sharpshooter69] #1607337
01/12/16 08:58 AM
01/12/16 08:58 AM
Joined: Nov 2011
Posts: 21,789
USA
R
Remington270 Offline
Freak of Nature
Remington270  Offline
Freak of Nature
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Joined: Nov 2011
Posts: 21,789
USA
Originally Posted By: Sharpshooter69
Originally Posted By: WildlifeBiologist
Pros: can lower your tax liability. Cons: record keeping can be a headache. Spend $70 and get TurboTax for Home & Small Business. It will guide you through tax deduction scenarios and may help you find deductions you have not thought about.


I get reimbursement for mileage, and yes I have another personal vehicle. The truck is used as my work vehicle. My travel trailer is also only used for work. That's why I bought both of them.
I'm an independent contractor. I work for several different companies at different times. Sometimes the jobs last a month, sometimes over a year. (Gas and oil industry).
My main question is, can I use the price I paid for my truck, and upkeep, tires, oil changes, etc, as some type of deduction ? I know mileage is out of the question.


Depreciation perhaps?

Re: Question for you tax gurus [Re: Sharpshooter69] #1607385
01/12/16 09:36 AM
01/12/16 09:36 AM
Joined: Dec 2006
Posts: 5,018
Mt. Olive
Sharpshooter69 Offline OP
12 point
Sharpshooter69  Offline OP
12 point
Joined: Dec 2006
Posts: 5,018
Mt. Olive
Not sure. Think I'll just find me a good CPA. Any suggestions on a good one around Cullman ?


The only thing necessary for the triumph of evil is that good men do nothing.

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