Question About Depreciation and Taxes

[Dynamite 1]

if you reinvest the selling price as down payment or in the event of a trade both lower the amount you are left to depreciate. but a reinvestment of the selling price negates capitol gains tax somehow through the tax laws. we did this and never paid capital gains tax on the selling price. i have a very reputable and knowledgeable accountant doing my corporate taxes. i cannot say how this is done and the tax may be canceled out by something else in the equation. all i know is we didnt pay it or get in trouble for it and the firm is far from doing anything that is not legal.

 

[chs007]

1st he could be correct to get new one but would not take depreciation, would do milage instead rather take 50,000 per year for each yar than 30,000 one time shot ( bases on 100,000 miles per year

 

[nightcreacher]

taking the mileage write off doesnt even get close to what you can write off.your cheeting yourself

 

[nightcreacher]

if you sell your truck,you have thirty days to reinvest your money,or you pay capital gain.When you use that for the down payment on your new truck,the difference is what you can depreciate on the new truck.In most cases depreciation and interest will be more than your payment.Owning a truck is the best tax shelter a truck driver can have,Just as lawyers and doctors use their hobbies as tax shelters,so is your truck,unless you enjoy paying 30% of your income to taxes.

 

[OntarioVanMan]

2010...Long-term capital gains.

Holding period...More than one year.

0% for taxpayers in the 10% and 15% tax brackets.

15% for taxpayers in the 25%, 28%, 33% and 35% tax brackets.

I would say most of us are in the 10-15% ta bracket OR less even...so CG would probably not even come into play...

 

[Dynamite 1]

thanks for clearing that up. i knew the previous statements were not so. just didnt know how they did it.

 

[OntarioVanMan]

I know a lot of chatter about C.G....we are really talking peanuts here...there is so much to counter the gains...like the new loss...after all we are talking a used truck here with not much real value left...

 

[Moot]

Seeing Joe and Jane come out of a four year old truck, he asked about taxes and learned that Joe and Jane did not like paying money in after they had received refunds three years before.

you can start the depreciation schedule over again and regain the large tax deduction that helped get you that nice refund in earlier years.

Phil, next time you see Joe and Jane, please explain to them that it is their money they are getting back in the form of a refund. I worked with intelligent people, well most of them, and every year they would brag about the large refund checks coming their way.

 

[Dynamite 1]

big refunds or any refund make no sense. bring your business to a zero and hold over any deductions unused. why let the government have use of your money all year only to give it back interest free.

 

[chefdennis]

Dynamite wrote:

big refunds or any refund make no sense. bring your business to a zero and hold over any deductions unused. why let the government have use of your money all year only to give it back interest free.

I have been in businese for myself off and on, (more on then off) most of my adult life, that last sentence is way I have NEVER paid quarterly tax payments.....