D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote:

- quote -

Are there limitations on switching, or limitations on
amounts you can claim (for example, depreciation)?

I am not a tax expert, so a reference to a form,
publication, etc., would be appreciated.

-HW "Skip" Weldon
Columbia, SC

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Ram 2500 <newdodgeowner[at]yahoo.com> wrote:

- quote -

If you are going to trade the truck off in 2-3 years, it is
a good idea. If not, over the long term, it is not a good
idea. It would pay you to hire a tax pro this year, anyway.

Missy Doyle

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"Ram 2500" <newdodgeowner[at]yahoo.com> wrote:

- quote -

Calculate it both ways and take the one that gives the
greatest deduction.

Wayne Brasch, CPA, M. S. Taxation

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Ram 2500 wrote:

- quote -

The answer is to calculate your auto expense both ways.
Remember almost all costs of truck operation are included in
the 36 cents a mile, e.g. repairs, depreciation, fuel and
oil, etc.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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newdodgeowner[at]yahoo.com posted:

- quote -

The currently-announced standard mileage deduction for 2004
is 37.5 cents a mile.

- quote -

You always have the option of deducting _actual expenses for
a new vehicle, which you have just put in service -- which
seems to be the case. The first requirement is that you
maintain an accurate log of all mileage driven, in order to
discriminate business use from casual personal use. Then,
you must keep receipts for all expenditures to maintain and
operate the vehicle -- including lubrication, mechanical
repairs and parts, as well as gasoline. Tolls and parking
expense are separately deductible either way -- i.e.,
whether you itemize actual expenses or take the standard
mileage allowance.

You will have to depreciate the cost of the vehicle, of
course, if you choose actual expense deduction.

At the end of the year -- or actually, after about six
months -- you'll know whether the mileage or total expense
option works best for you, given the current cost of gas and
based on your vehicle's cost and operating expense.

Hope this helps.

Bill

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Ram 2500 wrote:

- quote -

New vehicle this year => no problem in choosing actual
expenses to start.

There are limitations on switching methods in a subsequent
year, but you do have the freedom of choice in the first
year.

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- quote -

A lot will depend on an unknown - the price of gas and
repairs over the second half of the year. Best bet: Begin
saving all receipts so you have a choice.

-HW "Skip" Weldon
Columbia, SC

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I just bought a (work) truck that gets poor MPG.

With the current cost of fuel it seems it would be more
advantageous take the actual operating expenses than the 36
cent a mile standard deduction.

My truck gets 11-15 miles to the gallon. I will probably
drive about 14,000 miles. Gas is about 2.09 in my area.

Past years I have taken the mileage so I'm not sure which is
better when you have a gas guzzler (plus of course the other
deductible expenses).

NDO

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