[LDB]

I've got a new Sterling D unit. It is paid in full and as of tomorrow I will have filed for the title. How do I depreciate it? Do I take a set percentage for x years or do I take a mileage based amount as I drive it? Thanks.

[Fkatz]

Hi LDB

THE QUESTION YOU ASKED!,

<I've got a new Sterling D unit. It is paid in full and as of tomorrow I will have filed for the title. How do I depreciate it? Do I take a set percentage for x years or do I take a mileage based amount as I drive it? Thanks.

TRUTHFULLY YOU CAN NOT TAKE MILEAGE, YOU MUST TAKE DEPRECIATION.
IF YOU PLAN ON DOING YOUR OWN TAXES YOU WOULD HAVE TO FIND THE DEPRECIATION PUBLICATION #'S 551, 946, 334, 17, AND FIND THE CORRECT CHART AND USE THAT FORMAT. HERE ARE A FEW MORE THAT PERTAIN TO ASSETS.

THE DEPREICATION IS ONLY FOR 3 YEARS, WITH A 4 YEAR LIFE. BUT IT DEPENDS ON WHAT MONTH YOU PUT IT IN SERVICE. THE DEPREICATION PERIOD IS 3 YEARS, YOU WILL SEE IT WILL ACTUALL HAVE SMALLER DEDUCTION IN THE FIRST AND 4TH YEARS DEPENDING WHAT MONTH YOU PUT YOUR TRUCK IN SERVICE YOUR FIRST DEPRECIATION ON IT IS ONLY A SMALL PERCENTAGE,

IF YOU PLAN ON PAYING FOR IT IN FULL WHEN YOU BUY, YOU LOSE THE INTEREST DEDUCTION FOR THE PAYMENTS, AND FOR THE FIRST EITHER 100,000 OR 250,000 DEPENDING ON THE WARRENTY YOU PURCHASE YOU PROBABLY WILL NOT HAVE MANY REPAIR BILLS WHILE IT IS UNDER WARRENTY. EXECPT FOR NORMAL MAINTENANCE. OIL CHANGES, TIRES, AND ADDITIONAL FLUIDS.