How can I write off my truck I purchased last year for business on my 07 taxes? ?

Question

I bought a very expensive vehicle and I do use it just for business but I have heard there are ways you can completely write off the truck but I don't know how. I am using turbo tax!! any help would be greatly appreciated.

Answer 1

Depends on the size of your truck, your net income before this deduction, etc.  Read the help screens in Turbo Tax regarding Sec. 179 election to expense.  You may also want to read up on the subject in the Pub. section at irs.gov.

Answer 2

It depends on the "size" of the truck. If it is considered a heavy duty type of truck, than you should be able to completely write it off.  

Answer 3

There are limits to the total amount you can write off in the first year, so you might not be able to write off the cost completely, depending on its cost.  I'm not sure how Turbo Tax treats it, but you're going to want to find under your Schedule C (business income) the expenses section that mentions "depreciation", "listed property" and "Section 179".

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 begins on page 16.

If not, Turbo Tax should be able to guide you through the process, once you find the depreciation section.

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