60/40 Tax Question
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Thinking about purchasing a few cargo vans and putting drivers in them . Will be doing a 60/40 pay split . Question is : since driver will be paying for fuel , would I take the depreciation tax deduction on the van and will the driver also be able to write off the fuel on his or her taxes ?? THANK YOU !!
Hi Jeff,
if you thinking about purchasing a few cargo vansmake sure they are 1 tons, Chevy 350,
Ford 350, and sprinters
On a 60/40 split, they pay for fuel and yes you can depreciate the vehicle over 5 years at straight line depreciation but it also depends upon the month that you put it in actual service.
The drivers pay for there own fuel and tolls, occ insurance through the leasing co, and so On,
MAKE SURE YOU HAVE A WRITTEN CONTRACT WITH THEM AS A SUBCONTRACTOR SPELLING OUT EXACTLY WHAT YOU ARE RESPONSIBLE FOR, AND WHAT THEY ARE RESPONSIBLE FOR,
MAKE SURE THEY ARE PAYING YOU ESCROW OUT OF THE SETTLEMENTS OF ATLEAST $1,000.00. tHIS WILL COVER YOU IF YOU HAVE TO GO AND PICK UP THE VEHICLE IF THEY LEFT IT SOMEWHERE THAT YOU DID NOT SPECIFY.
fRANK
