Can the total price paid for a work truck be taken off taxes?

Question

I am a contract meter reader I furnish my own truck.Will the 2008 stimulus package allow this,or will I have to depreciate?

Answer 1

In addition to below this must be used solely for work purposes.

Answer 2

You would have to depreciate it.

Answer 3

Cost of capital goods must be depreciated. However, you can use section 179 deduction if you qualify.

Read http://taxipay.blogspot.com/2008/04/tax-...

Answer 4

I think it depends on the weight of the truck. If it is over 6,000 lbs you may be eligible for full deduction up to the Section 179 limits. I will edit my response if I find otherwise. Try this website to get more info.

http://www.section179.org/section_179_de...

Answer 5

Business expenses are never taken off of taxes.  They are taken to offset income.  The only thing that directly offsets tax is a tax credit.  

The stimulus program has absolutely nothing to do with business expenses.  And no, you can never write off an asset in one year.  It must be written down according to the schedule for that particular asset.

Answer 6

You don't mention this, so I want to make sure - you can only claim the Section 179 deduction in the first year of putting the vehicle into use.  There are limits to the total amount you can write off as part of your depreciation expense (which goes against your business income, not directly against your taxes) in the first year, so you might not be able to write off the cost completely, depending on its cost. More than likely you're going to be limited to $25,000, but check the rules in this publication for more information.

http://www.irs.gov/pub/irs-pdf/p946.pdf

The information for Section 179 (the write-off) begins on page 16.

Whatever amount you have leftover after the limits will need to be depreciated.

The stimulus package has absolutely nothing to do with it.

Hope this helps!! Any other questions, just ask!