"Jimmy" <jimmystew95[at]hotmail.com> wrote:

- quote -

Yes, it would, but sadly, that's not the world we live in.
BTW, don't blame the IRS for complexity. Your
representatives in Congress, the ones who are always
yammering about how they want to simplify the law, are the
ones who wrote it.

Aside from tax complexity, an accountant will get you in
touch with the financial side of your business. I've seen
too many entrepreneurs who work 16 hours a day and lose
money, but have no idea where the money's going.

After all, if everyone could do everything well, no one
would need whatever it is that you're selling.

--
Phil Marti
Clarksburg, MD

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Jimmy wrote:

- quote -

Keep in mind, it is CONGRESS (not the IRS) who enacts the
Internal Revenue Code - and you and I voted for 'em. Don't
blame the wrong people for the problem. <grin
MTW

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"Harlan Lunsford" <lunstax[at]belllsouth.net> wrote:

- quote -

Good point, never thought of it that way!

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"Phil Marti" <prm20871[at]verizon.net> wrote:

- quote -

thanks for the vote of confidence...wouldn't it be nice if
everyone tried to learn a little bit everyday? and wouldn't
it be nice if the IRS didn't make things so complicated that
people like you think everyone needs and accountant!

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Jimmy wrote:

- quote -

The principal is depreciated, not just off into never never
land. The interest is deducted. You are accounting for the
fact that your truck is being paid for by deducting the
interest and depreciating the principal. The IRS has a pub
946 that can be down loaded from irs.gov but I strongly
recommend that you get a tax pro in your area for this. at
least for this year.

MIssy Doyle

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Jimmy wrote:

- quote -

You reduce the balance on the loan.

Phoebe

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"Jimmy" <jimmystew95[at]hotmail.com> wrote:

- quote -

See the Depreciation publication for the rules.

- quote -

No, it's reflected in your depreciation deduction, which is
likely to be higher than the loan principal paid.

- quote -

Thanks for providing confirmation that you need an
accountant yesterday. The cash out is a combination of
interest expense and debt reduction on the note.

Now be good to yourself and hire an accountant. God alone
knows what deductions you're missing or records you're
messing up.

--
Phil Marti
Clarksburg, MD

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Jimmy wrote:

- quote -

Will you settle for five years?

- quote -

Check.

- quote -

Not to worry about it. Those principal payments are
repayments of a loan and therefore not deductible; after
all, when you borrow that or any other money, those loan
proceeds are not income, see?

ChEAr$,
Harlan Lunsford, EA n LA

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"Jimmy" <jimmystew95[at]hotmail.com> writes:

- quote -

The IRS. See Publication 946.

- quote -

Do you consider it income when you take money out of your
checking account and transfer it into your savings account?
That's the same reason the principal repayment is not an
expense. Don't confuse cash flow with income/expense.
While related they are most emphatically not identical.

- quote -

You (or your accountant/accounting program) debit your
checking account and credit your loans payable account for
the amount of the principal payment. In other words, it's
balance sheet-only transaction. It doesn't hit income or
expense accounts.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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The truck is for business use only.

So I can depreciate the trucks purchase price over the life
of the vehicle...do I get to decide its life or does the
IRS....

Interest is expensed as 'Intrest Expenses'...

The principal flutters off into never never land??? So when
I write a check every month, what do I do with the portion
that goes toward principal? How do I account for the fact
that it is gone from my account but isn't expensed anywhere?

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"Jimmy" <jimmystew95[at]hotmail.com> wrote:

- quote -

No

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Tell us the purpose for buying the truck.

Missy Doyle

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"Jimmy" <jimmystew95[at]hotmail.com> wrote:

- quote -

No.

First, we'll assume this is business use property. If it's
personal use there's no deduction at all.

The interest portion of your payment is deductible as
interest; the portion going to pay principal isn't
deductible. Depreciation is calculated on the purchase
price.

--
Phil Marti
Clarksburg, MD

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"Jimmy" <jimmystew95[at]hotmail.com> writes:

- quote -

You can expense out only the *interest* portion of the
loan payments. The principal portion is *not* an
expense.

- quote -

Yes.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Jimmy wrote:

- quote -

First of all, you have to be in business, or use a vehicle
in a business setting, even if as an employee. If you're
talking about personal use, then no deductions no how, no
way.

But in a business setting, you deduct deprecation and other
expenses, and just the interest on the loan - NOT the
monthly payments.

ChEAr$,
Harlan Lunsford, EA n LA

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If I take out a loan to purchase a used truck, can I expense
out my monthly payments each time I write a check and take a
depreciation expense at the end of the year as well?

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