On XM a couple days ago I heard one of the supposed experts say you can take the per diem for your food and itemize all your other expeses like fuel, parts, depreciation etc. and wondered if that is correct.
Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.
Hi Leo,
Yes, is the Answer to that question. the per diem is for food,the other items, such as fuel, repairs, tolls, cdl's, registration, is still a deductiable item. As far a depreciation is concerned, it is depreciable in the year it is put into business service, then an amount at a percentage is taken each year based on the month that you put it in service. and the years that it can be taken, or if it is a new item.
Iam talking about 1 year expenses only
For example, you truck is depreciated over 3 years, unless it is a Cargo Van. then it is 5 if taking actual expenses.
Electronics is 5 years, furniture is 7 years. etc.
lets say you purchased a truck
Your expense that would be taken at the 179 deduction would be the deposit, plus your cost to go get it.
the balance would be depreciated over the next 3 years, or could be a total of 4 years depending on the time of the year it is put into service.
Now you could take the complete cost of the truck for tax years 2003,$ 100,000. 04 102,000 and 05, this year would be 105,000, for 2006 it reverts back to $25,000 at the present time. But you would have nothing for a truck deduction for the following 2 years due to taking all the depreciation in the first year.
Computer software is consided a depreicable item and is 100 percent taken in the year it is purchased, under the 179 deduction. it is not considered a regular expense under office supplies, or regular truck supplies. or even listed on your SCh C.
Frank
