Writing off commercial truck expenses is a standard procedure used as a deductible to reduce your businesses yearly tax obligations, and is a viable option for any business that utilizes their commercial truck for at least a portion of the time for business purposes.
There is no doubt that you should take advantage of this as a business to save money, especially for businesses with a larger fleet, as all those miles will add up to significant savings. Of course there are rules and regulations that detail what exactly can and can’t be written off when it comes to commercial trucks. For full details visit the IRS site on Car Expenses at http://www.irs.gov/publications/p463/ch04.html#en_US_2011_publink100033930.
In the case of deductions/write offs that specifically relate to commercial truck financing, it is allowable in certain situations and depends on many factors such as vehicle use, expenses, loan versus lease financing, depreciation, and the number of vehicles used for business. In the case of a commercial truck loan, it is allowable to write off that part of the interest expense from your commercial truck loan that represents your business use of the vehicle. If you utilize your commercial truck 100% for business purposes, then you can deduct 100% of the interest expense.
When writing off expenses relating to the operation of your commercial truck you can choose between the Standard Mileage Rate or the Actual Car Expenses, though not both, so if you qualify for both, it is important to calculate each option to decide which benefits your business most. If you choose to write off the Standard Mileage Rate, you cannot deduct lease payments or depreciation, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. If you own or lease your commercial truck, you can still choose the Standard Mileage Rate deduction. For a commercial truck you own, you must choose to use it in the first year the car is available for use in your business. After this defined period of time, you can choose to use either the standard mileage rate or actual expenses. 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),
TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow and semi truck financing, heavy equipment financing and more. Contact TrucklendersUSA.com for all types of commercial financing.
There is no doubt that you should take advantage of this as a business to save money, especially for businesses with a larger fleet, as all those miles will add up to significant savings. Of course there are rules and regulations that detail what exactly can and can’t be written off when it comes to commercial trucks. For full details visit the IRS site on Car Expenses at http://www.irs.gov/publications/p463/ch04.html#en_US_2011_publink100033930.
In the case of deductions/write offs that specifically relate to commercial truck financing, it is allowable in certain situations and depends on many factors such as vehicle use, expenses, loan versus lease financing, depreciation, and the number of vehicles used for business. In the case of a commercial truck loan, it is allowable to write off that part of the interest expense from your commercial truck loan that represents your business use of the vehicle. If you utilize your commercial truck 100% for business purposes, then you can deduct 100% of the interest expense.
When writing off expenses relating to the operation of your commercial truck you can choose between the Standard Mileage Rate or the Actual Car Expenses, though not both, so if you qualify for both, it is important to calculate each option to decide which benefits your business most. If you choose to write off the Standard Mileage Rate, you cannot deduct lease payments or depreciation, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. If you own or lease your commercial truck, you can still choose the Standard Mileage Rate deduction. For a commercial truck you own, you must choose to use it in the first year the car is available for use in your business. After this defined period of time, you can choose to use either the standard mileage rate or actual expenses. 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(as discussed later under Depreciation Deduction),
- Claimed a section 179 deduction(discussed later) 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
TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow and semi truck financing, heavy equipment financing and more. Contact TrucklendersUSA.com for all types of commercial financing.
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