Discussion:Truck Driver Tax Break : 1120

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Discussion Forum Index --> Tax Questions --> Truck Driver Tax Break : 1120

XZiler8r (talk|edits) said:

1 March 2007
I have a client who purchased a dump truck (133) on a 1120 corporation. He said that he has fellow workers who have told him there is a 10K tax break on purchasing new trucks of these magnitudes. Is there anything like that? The only thing I did was depreciate the truck and wrote off the mileage which was better off than actual expenses.

XZiler8r (talk|edits) said:

1 March 2007
133 who was meant to be $113K, not some type of code

June March (talk|edits) said:

1 March 2007
Are you asking about Section 179 expense? By the way depreciation is actual expense. You cannot not use mileage and

actual expense.

Glmpllc (talk|edits) said:

1 March 2007
A C corp purchases a dump truck for $113K and you wrote off mileage? Your facts don't make sense to me. I'm not aware that a C corp can deduct expenses for it's owned assets using mileage. I'd take a look at IRC Sec. 179 first and also the rules on depreciating vehicles (I don't believe a dump truck is subject to auto limitations).

XZiler8r (talk|edits) said:

1 March 2007
So then i would do depreciation and actual expenses (oil changes, tire changes, repairs, etc...)?

Klesher (talk|edits) said:

1 March 2007
yes deprec/section 179 expense and actual expenses

Deback (talk|edits) said:

March 1, 2007
Actual expenses = depreciation and Sec 179, gas or fuel, repairs (including tires, oil changes, etc), insurance, and license fees.

The mileage rate includes all of the above.

Choose one of the above but not a combination.

Interest expense is deducted separately when using either of the above methods.

Glmpllc (talk|edits) said:

1 March 2007
Deback, I read the OP as stating that a C Corp purchased the dumptruck. I always thought the use of standard mileage rate is limited to employees and the self-employed. Am I mistaken?

Lal (talk|edits) said:

3 April 2008
you cant use standard mileage rate on a dump truck, it doesn't qualify. i hope u didnt mail the return yet

JR1 (talk|edits) said:

April 3, 2008
Hey uh, LAL, hope you can read. Did you notice the date on this post? ......

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