Leasing ?'s
- Thread starter Dakota
- Start date
Dakota
Veteran Expediter
From another thread....
actually ,taxes are the # one rezone not to go into a lease .
in most cases , depending on the lease , you might not be aliabel for the deduction of the (so called) "paymens", nor the depreciation of the truck .
you should have checked it before signing the lease .
you might be better off , asking it on the Tax topics forum .
at any case , now will be a good time to fax the lease to an accounting Co. ,that understand the trucking taxes, for review .
before you sign into another truck .
actually ,taxes are the # one rezone not to go into a lease .
in most cases , depending on the lease , you might not be aliabel for the deduction of the (so called) "paymens", nor the depreciation of the truck .
you should have checked it before signing the lease .
you might be better off , asking it on the Tax topics forum .
at any case , now will be a good time to fax the lease to an accounting Co. ,that understand the trucking taxes, for review .
before you sign into another truck .
Leasing ?'s
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Okay, in another thread, I have been told that my lease payment is not tax deductable.
I don't know if this is true or not
I pay a lease payment and then an .08 cents a mile fee for my maintenance. In addition to taxes on my lease
Is any or all of this deductible?
__________________
OOIDA MEMBER# 939460
Ceva Freight #FWA 210
2007 26' Hino daycab straight truck
CLC check inn card member
Keycode REFERE2 Referral code 193771
Dakota;
It would depend on what your lease states and how it is written.
Questions that would determine weather it would be lease payments or depreciation both would be deducted in different way.
1. IS YOUR LEASE A OPEN END OR CLOSED END LEASE,
2. HOW MUCH IS YOUR BUYOUT AT THE END OF THE LEASE
One is called a Capital Lease by which you are purchasing the truck at the end of the lease.
If you lease is set up this way, your truck would be depreciated over 3-5 years depending on GVW, at straight line depreciation,
the $.08 payment is then deducted as repairs and maintenance separated from the actual repairs that are made, this is what is called a saving account that pays for your repairs that the CO issues a Comdata Check to cover the repair, and deducts it from your repair escrow account.
The lease payments then are not deductible. but everything else is.
Depending on the buyout, Normally around $8,000-$15,000 which would be the lesser of the full lease, then it is considered a capital lease which you are going to own at the end. Then thats a decision that you have to make..
Teh other lease is considered a full lease, buyout is between $25,000 and up, Your not buying the truck at the end of the lease etc.
This lease is a Closed End Lease and you are returning the truck to the dealer at the end
Then your full lease payments are totally deductible, for the term of the lease. including the $08 cents but that will be taken as a repair deduction as stated above
No matter whcih lease you have the .08 Cents will be deducted on the repair and maintenance line.
Dakota, If you have any additional questions please do not hesitate to ask, you can reach me a [[email protected]] or
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
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Okay, in another thread, I have been told that my lease payment is not tax deductable.
I don't know if this is true or not
I pay a lease payment and then an .08 cents a mile fee for my maintenance. In addition to taxes on my lease
Is any or all of this deductible?
__________________
OOIDA MEMBER# 939460
Ceva Freight #FWA 210
2007 26' Hino daycab straight truck
CLC check inn card member
Keycode REFERE2 Referral code 193771
Dakota;
It would depend on what your lease states and how it is written.
Questions that would determine weather it would be lease payments or depreciation both would be deducted in different way.
1. IS YOUR LEASE A OPEN END OR CLOSED END LEASE,
2. HOW MUCH IS YOUR BUYOUT AT THE END OF THE LEASE
One is called a Capital Lease by which you are purchasing the truck at the end of the lease.
If you lease is set up this way, your truck would be depreciated over 3-5 years depending on GVW, at straight line depreciation,
the $.08 payment is then deducted as repairs and maintenance separated from the actual repairs that are made, this is what is called a saving account that pays for your repairs that the CO issues a Comdata Check to cover the repair, and deducts it from your repair escrow account.
The lease payments then are not deductible. but everything else is.
Depending on the buyout, Normally around $8,000-$15,000 which would be the lesser of the full lease, then it is considered a capital lease which you are going to own at the end. Then thats a decision that you have to make..
Teh other lease is considered a full lease, buyout is between $25,000 and up, Your not buying the truck at the end of the lease etc.
This lease is a Closed End Lease and you are returning the truck to the dealer at the end
Then your full lease payments are totally deductible, for the term of the lease. including the $08 cents but that will be taken as a repair deduction as stated above
No matter whcih lease you have the .08 Cents will be deducted on the repair and maintenance line.
Dakota, If you have any additional questions please do not hesitate to ask, you can reach me a [[email protected]] or
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
Dakota, I left off one important item, the deposit that you put down on the truck to lease it is also a deduction, this is done this way
it is considered a 179 deduction and fully deducted.
lets say truck leased at $1333.33 plus interest per month for 60 months, adn put up $5000.00 deposit.
if you ave a closed end lease
here is the way it would be listed on the Sch C
Line # Depreciation $5000.00
Line # Lease Vehicle $14,666.00 lease in january 2009 11 months
Capital Lease form 4562 179 dedcution $5000.00
Truck purchased $85,000 January 2009 your basis in the truck is $80.000 not 85.000
Since you purchase in january 2009 you would recieve a full year depreication or
16,000, So your dedcution for 2009 would be 21,000, and 16,000 for the next 4 years. since it is a 5 years depreication , with a 6 year life, meaning it depended on when the truck was purchased (what month to bring it into the 6th year.
this is only an example
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
it is considered a 179 deduction and fully deducted.
lets say truck leased at $1333.33 plus interest per month for 60 months, adn put up $5000.00 deposit.
if you ave a closed end lease
here is the way it would be listed on the Sch C
Line # Depreciation $5000.00
Line # Lease Vehicle $14,666.00 lease in january 2009 11 months
Capital Lease form 4562 179 dedcution $5000.00
Truck purchased $85,000 January 2009 your basis in the truck is $80.000 not 85.000
Since you purchase in january 2009 you would recieve a full year depreication or
16,000, So your dedcution for 2009 would be 21,000, and 16,000 for the next 4 years. since it is a 5 years depreication , with a 6 year life, meaning it depended on when the truck was purchased (what month to bring it into the 6th year.
this is only an example
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.