To deduct, or not to deduct. That is the question

[theoldprof]

If a O/O takes per diem and mileage depreciation, what are the common expenses that can and cannot be deducted? There is food, fuel, tolls, repairs, tires, accessories for the truck, and many other items. Could someone make a list of some common items?

Thanks. :+ :+

 

[Fkatz]

RE: To deduct, or not to deduct. That is the ques

"To deduct, or not to deduct. That is the question"
Dec-17-05, 12:19 PM (EST)
If a O/O takes per diem and mileage depreciation, what are the common expenses that can and cannot be deducted? There is food, fuel, tolls, repairs, tires, accessories for the truck, and many other items. Could someone make a list of some common items?
Thanks.

First of all it would depend on what type of unit you are driving, basically the only unit that you can take the standard mileage deduction is a Cargo van,

If you drive a Cargo van or van/pickup with a box and take the standard mileage you can only take Tolls, you cannot take fuel, repairs, tires, insurance, interest, payments, tuck washes, etc. which really works out better in the long run. you can take motels

If you drive a Straight truck or tractor trailer you must take depreciation on the vehicle itself, over a 3 year period, with a 4 year life which would depend on the month the truck was placed in service. YOU CANNOT TAKE MILEAGE AST ALL. You have to take actual expenses on the truck: tires, fuel,repairs, additonal oil, etc/

The Per diem of $41.00 per day US and $46.00 Canada is taken on both this is for Food and you can take the cost of motels additionally.

IF you would want a deductiable listing please send me a direct
e mail to [[email protected]] and I will attach one to it

Frank

 

[OntarioVanMan]

RE: To deduct, or not to deduct. That is the ques

First of all it would depend on what type of unit you are driving, basically the only unit that you can take the standard mileage deduction is a Cargo van,

If you drive a Cargo van or van/pickup with a box and take the standard mileage you can only take Tolls, you cannot take fuel, repairs, tires, insurance, interest, payments, tuck washes, etc. which really works out better in the long run. you can take motels

What really works out well? taking the standard mileage or the actual?

Now standard is for EVERY mile driven? loaded and unloaded? from the time we leave home till return time?

BTW I am Canadian, moved to South Dakota in the fall our CO is U.S. based running with U.S. plates in a Sprinter Cargo Van. My wife is part of the team she is American. BTW, SD has NO personal income tax and NO corporate tax.

As for per diem...being a team are we BOTH allowed the FULL per diem?
My accountant in Canada was offish about this as being a husband and wife Revenue Canada might not accept this FULL deduction. so he reduced hers by half of what was allowed and they didn't object.

Have you heard of any good tax accountants in the Rapid City area?