Self-employed? Check this out!!

[colorado2002]

http://www.detnews.com/2002/autosinsider/0212/19/c01-38875.htm

Might be worth some bucks to some of you.

[KenZ]

Yes this is what I did. I know a lot of business owners taking advantage of this. You have to remember that the section 179 is limited to the $25000, so if you put your vehicle under section 179, then it will use up all of your 179 deduction, so you would have to depreciate other items on a normal schedule. So buy your vehicle in a year when you don't make many other capital purchases.

I looked at a denali the other day and couldn't believe the base price was 52000! I think maybe the manufacturers must be taking advantage of the tax code too--at the consumers expense.

[KenZ]

I always forget to delete that signature. Had my truck since Nov 2001

Ken

[Kennedy]

OK, but now when you sell the vehicle, you must report the sale as income correct? Anything over the adjusted value is still gonna cost you, or am I missing something?

[Tommy turbo]

I Used this break on last years taxes. Helped me greatly. As with any equipment bought and wrote off your buiseness when you sell or dispose of said property you show the differance of purchase and sell price on tax form. In saying that I would not sell my truck without buying another to replace it. I cannot imagine selling it for more than I paid for it. So it could not be considered income in my case. My tax man said I saved $6000.00 in taxes by doing this.

[ 12-20-2002: Message edited by: Tommy turbo ]</p>

[Kennedy]

But you LOSE any mileage expense AND, as I understand, now need to keep detailed records of all maintenance expense etc.

I guess what I am trying to say is look into this carefully, and remember, you only save in tax on the ACTUAL depreciation. Now if you can find someone to pay CASH for your truck when you sell it...

I'm not an accountant, and can't even begin to explain this with certainty.

[GMC-2002-Dmax]

To All,

I have self employed since 1992 and have always used depreciation instead of mileage. I always get to write off ins.,fuel,repairs,cost of truck etc.

I have not made any money on anything yet, as I always trade in to save the sales tax and then the IRS can't question anything :eek: :eek: .

I have had good luck, others may not seeing as I drive 30K or more miles a year.

Good Luck to all,

GMC

[Paintdude]

I have been self employed since 1990 and have been trading trucks every 2 yrs,depreciating them,taking exspenses..This is the best way for me to keep the IRS records straight..I went from a SR-5 Toyota to the Duramax..I may be done for awhile now..Not much more of a upgrade from here..

I will be able to take the 12,000 difference right off of the top of my income taxes..I am gonna keep this truck for about 6yrs or longer if possible and just do less work..be more selective than I presently am..

Guys tell me to borrow money or lease, but I think if I keep this truck for a long time, I can beat the capitol gains and all repairs will be tax deductable..and if I make to much money in 2004 I might just trade again, who knows..

people just do not realize that if you get audited and do not have a log of mileage and trips,you can get stung pretty bad by uncle sam..

I just do to many short trips for that...