Can I depreciate my large transportation trucks (transport business)
It costs a lot to repair and maintain this equipment. Can I write these costs off every year. And I have a lot of mileage. These are not passenger vehicles. they are 100% business. I am confused. Thank you
You can absolutely depreciate the transport vehicles that you use for your business. In addition to depreciation expense, you can also write off the repairs and maintenance or the mileage.
I recommend that you calculate the total expenses for the vehicles including gas, repairs, registration and parking fees and compare that to what your tax deduction would be based on mileage. Whichever is larger, take that deduction. You can follow the instructions for IRS Form 4562 to calculate these deductions. Be sure to check out our Mileage Deduction article to learn more about how this deduction works.
Instructions for Form 4562Form 4562
Crystalynn Shelton, CPA
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