Freightchaser,
Yes there are capital equipment ivestments deductions but they are only for persons with a physical place of business where the capital improvments can be deducted and depreciated over a period of 5 years. through ammorization. Similar to resturants, new business offices, etc. where you invest capital dollars into reconstruction, new business equipment, changing walls, new walkin freezers, refrigators, servers, and all office equipment that is capital improvements.
As far as a truck is concerned, you are not inproving your truck as to moving walls, you are only buying the vehicle basically complete, with e-track, plywood floors, sleeper, plus the equipment that you add to it. refrigator, cooler, mircowave, tv, vcr, mattress, storage cabinets. which is all depreciable separately, your electronic equipmet. unless it came with the truck upon purchase.
is depreciated you have to remember when you trade in that truck, or sell it you have to recapture all the depreciation that you have taking over the 3 year period that you are allowed to depreciate it.
In other words,
lets say, your truck was 85,000
you put a deposit of 5,000
your basis in the truck is now $80,000
youhave taking depreciation over 3 yrs 80,000
your truck is worth 0 as far as deprecation
you sell or trade in your truck for lets say 35,000
your depreciation is 80,000 recaptured less $35,000 your taxable capital gain is $45,000
There are really no incentives for trucks period. except the factoy incentive which is not deductable.
As far as buying and leasing to the S corp or LLC, it is not worth the aggravation you will have to go thru, because the income from the lease is taxable to you personally, and the 1099 which you recieve will probably be made out to you personally, unless the contract states the company is who they are paying. When you are a corporation true, it protects your personal assets if you go bust, but since your using the truck as a collateral for the corp it will then affect your creditability, and you would have to go corp bankrupt. Dont forget also being a Corporation, you must carry workmens comp insurance on yourself and your wife, which is very $$$$$$, Within a corp
1. Incorporation papers depending which state, runs anywhere between $300-$1000 depending on your lawyers
2 You are responsible for federal, State, and Unemployment taxes to be paid, as saleries, W-2sto be made out and are considered an employee of the corp.
3 possible double taxation, Corporation taxes, and personal taxes.
4 the leasing co that you are leased to will not take taxes out on you they will make out a 1099misc, income form for the corp each year. all of your deductions repairs, fuel, tires, maintaince, insurance, phones, plus many more are only deductiable to the corp not personally, you can only take, the deduction for the days logged out, and showers, plus minor truck item you perchase for your self on the truck.
any other questions you can find Federal publication on the web all of these publication at [
www.irs,gov/formspubs/index.html]
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