EagleRiverWI
Seasoned Expediter
My accountant says I can get an extra $300 back a year, because of my new APU. How have other users done it?
fuel tax & APU usage
- Thread starter EagleRiverWI
- Start date
Frank we have an Rig Master do you get an automatic deduction of the 300.00 or do you get a precentage of fuel used?
Frank we have an Rig Master do you get an automatic deduction of the 300.00 or do you get a precentage of fuel used?
Bob & Linda Caffee
O/O D6077 FedEx CC
Bob & Linda,
Hi, There is no automatic deduction,
Since the Rig Master is a aftermarket addon and was not purchase with the Truck it must be depreciated over 5 years,from the date it is purchased, if it was purchase with the truck and part of the payments then it is not deductiable, and only the fuel is.
For instance,
You purchased it on Sept 3,2006 and paid $9500.00 installed with taxes
Breakdown is as follows using Straight line derpeciation over
$ 9,500.00
Less Deposit 1,000.00
Basis of item 8,500.00
8500 x 7.5% 2006 depreciation $637.00 plus the $1000 deposit as 179
Deduction.
you would recieve a $1700.00 deduction each year until 2010
$1062.50 deduction for 2001
total deduction for 5 years $9500.00
I would like to know why he only says $300.00 a year.
Is this Accountant a CPA, Doesn't he know about depreciation???
Plus the Fuel for the APU is also deductiable
Franklin Katz, ATP
Bob & Linda Caffee
O/O D6077 FedEx CC
Bob & Linda,
Hi, There is no automatic deduction,
Since the Rig Master is a aftermarket addon and was not purchase with the Truck it must be depreciated over 5 years,from the date it is purchased, if it was purchase with the truck and part of the payments then it is not deductiable, and only the fuel is.
For instance,
You purchased it on Sept 3,2006 and paid $9500.00 installed with taxes
Breakdown is as follows using Straight line derpeciation over
$ 9,500.00
Less Deposit 1,000.00
Basis of item 8,500.00
8500 x 7.5% 2006 depreciation $637.00 plus the $1000 deposit as 179
Deduction.
you would recieve a $1700.00 deduction each year until 2010
$1062.50 deduction for 2001
total deduction for 5 years $9500.00
I would like to know why he only says $300.00 a year.
Is this Accountant a CPA, Doesn't he know about depreciation???
Plus the Fuel for the APU is also deductiable
Franklin Katz, ATP
EagleRiverWI
Seasoned Expediter
Yes my accountant is a CPA in Green Bay, WI. He has a lot of truckers as customers from Schneider and Smithfield Meats (formerly Packerland Packing)The APU is 1 week old and a Thermoking Tri Pack.
Bob & Linda, I met you in Romeoville 2 weeks ago.
Bob & Linda, I met you in Romeoville 2 weeks ago.
EagleRiverWI
Seasoned Expediter
My accountant said the deduction was an approximate amount of the money he gets for "off road use" of fuel. It is based on what he gets for other drivers with APU's.
{b}Eagle River,
It seems that the accountant that has all the Schneider, and Smithfield Drivers are Company Drivers, and the Companies pay for the fuel. Unless they are O/O's.
Here is what the actual deduction is for your Rig Master,
The Equipment is a Addon, So it must be depreicated over a period of 5 years, even though the truck is only for 3 years. and is broken down by the Month that it is put into service, So you are saying that the Equipment is 1wk old, and purchased in Nov. 2006
You would received 7.5% of the Basis for 2006 after the Deposit that you gave to purchase it. This figure becomes the basis of the equipment.
Then you would receive 20% per year for the next 4 years 2007-2011and then 12.5% for 2012 it has a 6 year life.
And all of the fuel that you use is totally deductible, not a percentage or any other automatic deduction. Even though this accountant has drivers or O/O's he might not be giving all of them the correct deductions.
If you do not understand this give me a call Monday-Thursday 9 AM to 4PM and Fridays 9AM to 1PM until December 15th. at 704-739-4039
Frank
It seems that the accountant that has all the Schneider, and Smithfield Drivers are Company Drivers, and the Companies pay for the fuel. Unless they are O/O's.
Here is what the actual deduction is for your Rig Master,
The Equipment is a Addon, So it must be depreicated over a period of 5 years, even though the truck is only for 3 years. and is broken down by the Month that it is put into service, So you are saying that the Equipment is 1wk old, and purchased in Nov. 2006
You would received 7.5% of the Basis for 2006 after the Deposit that you gave to purchase it. This figure becomes the basis of the equipment.
Then you would receive 20% per year for the next 4 years 2007-2011and then 12.5% for 2012 it has a 6 year life.
And all of the fuel that you use is totally deductible, not a percentage or any other automatic deduction. Even though this accountant has drivers or O/O's he might not be giving all of them the correct deductions.
If you do not understand this give me a call Monday-Thursday 9 AM to 4PM and Fridays 9AM to 1PM until December 15th. at 704-739-4039
Frank