I have a rental property currently and I'm buying another in a few months. My old s10 blazer isn't the best at doing the home depot trips. I've read I can "write off" the expenses of a business vehicle(repairs/taxes/fuel/purchase price).
So say I claim I use it 50% for work I can "write off" 50% of the cost.
If I spend $6000 on truck payments a year and claim half those miles were for business does the gov just cut me a check for $3000 at the end of the year?
Is it that easy if I keep my recites etc.
It doesn't work quite that way, it's more of a percentage of your income tax that is reduced. The government is not going to pay you to run a business.
Yes keep your receipts, go to a good tax guy next year, and your taxes won't be as ridiculous, but "writing it off" doesn't work like that.
I'm sorry this is shit news, it was like getting stabbed when I found this out two years ago when I started my business.
As for your truck that you already have, drive it until repairs cost more than a payment, then get a loan on a new vehicle.
Ok so that 50/50 thing is sort of sketchy, check with a tax attorney , I know for a fact theyll laugh at you if you try that with cell phone bill.
So these earnings from the company (you have an llc I presume?) will be filed alongside your personal taxes, unless the expenses are more than what you could deduct normally its moot (its either or, not both)
but its like 55 cents a mile OR gas (again, either OR) , you almost always are better off writing off the mileage than the gas (maybe gas in like 2008 at 4 bucks a gallon would have been better)
Not sure if you can include other repairs and maintenance , I Think thats why they put it up so high (0.55 a mile) because at that rate its covering the damage youre doing to the car.
No, you're not a business unless you want to be. That said, as far as i know, if you want to write ANYTHING off as business related, you will need an llc, or I would get a sole-propritoriship. Google info about the subject and you'll be on your way senpai
I take the mileage deduction instead. You get to write off 54c/mile for 2016. Keep a mileage log though. For me, its easier than messing with personal/business use percentages and depreciation.
What they said, you can't write off business expenses for a business that doesn't exist and as I pointed out above (and other guys confirming) the mileage gives you the most writeoff.
That said do talk to an accountant to get the nitty gritty (I had a delivery business for 6 months but dont remember if I wrote off oil changes and car payments as well)
My last business that failed EVERYTHING business related was a tax writeoff
A cpa costs like 150 bucks, worth the money.