Commercial truck loan and lease write offs for 2013

According to the IRS website, beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) for business purposes will be:

• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

It is important to keep in mind that depending on whether your business has a lease or a loan for your commercial truck, you may have the choice between the standard mileage rate write off or the actual cost of using vehicle expenses which include cleaning, inside and out, waxing, depreciation, if you own, the vehicle, gas and oil, insurance, interest on a vehicle loan, lease payments, if you lease the vehicle, license fees, if substantially based on the value of the vehicle, motor club membership, parking and garage rental, personal property taxes, repairs and maintenance, tires and supplies, tolls, all of which will require you to keep detailed records. You must use the standard mileage rate in the first year the commercial truck is available for use by your business or you will no longer be able to choose the standard mileage rate in subsequent years. However, if you use the standard mileage rate the first year, you can decide in later years to go back and forth between the standard mileage rate and actual car expense contingent on meeting certain requirements. If you are unclear as to which option to choose, start by using the standard mileage rate the first year you use the car for business, which gives you more flexibility in choosing deductions for subsequent years. If you want to use the Standard Mileage Rate for a car you lease, you must use it for the entire lease period. In some circumstances, you are not able to opt for the Standard Mileage Rate, per the IRS website linked above:

• Use five or more cars at the same time (as in fleet operations)
• Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS
• Claimed a section 179 deduction on the car
• Claimed the special depreciation allowance on the car
• Claimed actual car expenses after 1997 for a car you leased, or
• Are a rural mail carrier who received a qualified reimbursement

Beyond the two deductions discussed above, your commercial truck may qualify for additional write offs based on depreciation. See Depreciation and Section 179 deductions IRS documents. The IRS is also explicit that a taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In some situations, transporting heavy or bulky tools, materials, or equipment to and from your workplace can even qualify as a commuting deduction only if they are considered "deductible equipment transportation" costs. Deciding which write offs benefit your company most is never a simple answer. You must carefully weigh your options, consult your accountant, and refer to IRS publications.

TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow truck financing, commercial trailer financing/leasing services. Contact TrucklendersUSA.com for all types of commercial financing.