I have heard conflicting stories. The lease payments are fully deductible on sch c........or pay it off then use depreciation. Please give me some advice. I have talked with 2 different tax people.
2006-09-29 12:47:17 · 3 answers · asked by linluv2001 2 in Business & Finance ➔ Taxes ➔ United States
There is no bank involved. No interest.
2006-09-29 16:18:20 · update #1
Depreciation can be a significant expense reducing your taxable income with no outlay from your pocket. Use it where you need it and you don't have to take it all in one year. We are depreciating my Kenworth over 3 years in equal amounts. Find a CPA and put them on retainer. Visit them monthly with your numbers and questions. I pay mine about $500/ year and I'm sure it pays for itself. He does my tax returns and estimated payments for that sum.I take him a simple spreadsheet and an envelope of receipts every month. Ask some local drivers for a recommendation and don't pay too much attention to what you hear on the CB.
2006-10-06 13:31:22 · answer #1 · answered by Norman 7 · 0⤊ 0⤋
It is true that you can only start taking deduction for amortizing the truck after you own it. However another thing to consider is property tax. If you own the property on January 1st you will be paying property tax that year. So you might want to wait until January 2 to buy.
One more thing to consider is insurance. Not only you will have the insurance you currently have for operating the semi, you will also need to get property insurance.
Sorry, I probabily raised more questions than given you answers. But this is a complex world we live in.
Good luck.
2006-09-29 21:24:00 · answer #2 · answered by JQT 6 · 1⤊ 1⤋
pay it off as soon as you can.if you wait till 07 on a lease you would have paid to much in interest.
2006-09-29 23:14:40 · answer #3 · answered by TIMOTHY F 2 · 1⤊ 0⤋