CPA says 2014 we can buy a new truck!!

[fredcandetail]

Well according to my CPA ew have ehausted all depreciation on our last vehicle and we can buy a new truck this year!
That means I get to put in the old Tundra into detailing action and now I can get me the 2014!!!!!

Problem is it has to be white!! and we all heard about the single stage super white paint that Toyota is known for .....

As coatings havent been our thing (intentionally dont push them to keep repeat old school polish business) but with SS paint i'm thinking i might need to add a layer of clear ...... my current 09 tundra gets Opti Seal every month or so and the paint looks like glass!

So having said that .. whats coating is HOT these days that i can get from AG? or maybe I should just keep using OptiSeal....

[FUNX650]

Fred...

I say go with a permanent solution: Optimum's Coatings.
And since you're a Professional Detailing Businessman:
Go with OptiGard!

Bob

[dcjredline]

Um, so your going into a new truck payment cause your CPA says you can? I say he cant add... you are making a $300 or more a month car payment to write off the depreciation? UGH. I cant wait to see it none-the-less! I love new vehicles I just will never buy one again. Write off or not.

[ABHernandez]

I agree with the above. Just because you CAN doesn't mean you HAVE to.

Also your post seems like you want to get it to be able to depreciate it and reduce your net income? Is this for tax purposes?

Anyway, being able to afford a new car can be very tempting so I don't blame you in that respect.

In conclusion, you should think about it a few days. Don't make a decision on impulse because of what your CPA said.

Best of luck!

[FUNX650]

Why people would question that Fred's CPA would not be well-versed in the application of Section 179, or any other germane Sections, of the U.S. Tax Code...Is beyond me.

Bob

[Mike@DedicatedPerfection]

Cpa?

[dcjredline]

Because I know of some CPA's that think its better to have a mortgage "for the tax write off" which makes NO sense if you can do math.

Example from Dave Ramseys website...
Let me help you with the mathematics on this. Let’s use an example. Let’s say you have a $200,000 mortgage at 5% interest. If this is your personal residence and you do itemize—by the way, only 27% of Americans who file taxes itemize—you can write off the interest portion of your payment on your personal residence. If you have a $200,000 mortgage at 5%, that would be $10,000. We have a $10,000 tax write-off because we have a $200,000 mortgage at 5%. That’s a tax deduction, meaning if that couple makes $75,000 a year and they take a $10,000 tax deduction, they don’t pay taxes on $75,000. They instead pay taxes on $65,000. If you do this weird Dave Ramsey thing, though, and you pay off the house, you no longer pay taxes on $65,000 because you would not have a tax deduction. You’d have to pay taxes on $75,000. You’re in a 25% tax bracket if you make $75,000 a year. That $10,000 a year that we’re talking about is taxed at 25%. By paying off your home, 25% of that $10,000 that you’re going to have to pay extra taxes on is $2,500. In essence, you lost a $2,500 savings on your tax bill, but you gained $10,000 by not having to pay it to the bank.

A $10,000 tax deduction is the same thing as saying, “I would rather give Countrywide $10,000 than give the government $2,500.” I’m not fond of giving the government money, but I think that that’s a pretty stupid trade, by the way. If you’re so dumb that you think giving Countrywide or Wells Fargo or whoever your mortgage company is $10,000 to avoid a $2,500 tax bill, you flunked math in the third grade. That’s stupid. I used to be that stupid. I believed that same mythology that a lot of you believe.

[dcjredline]

Cpa?
Certified Public Accountant

[FUNX650]

Looking back now...
I do wonder if I couldn't have gotten away with claiming "Tax Write-offs"...for personal home mortgages...as part and parcel of the previously referenced Section 179.

Then again...
I do remember some people being audited for allegedly perpetrating less meaningful tax-crimes against not only themselves, but society as a whole.

Bob

[dcjredline]

How this all relates to a detailing truck is that you destroy the value of the vehicle by driving it so many miles per year. Why would you "destroy" $32k? How can you think that is smarter than "destroying" a nice 2-3 year old $17k truck? You can still write off the depreciation but wont be hurting your wallet as much in the long run. I would personally go even further and just buy a vehicle outright and not ever take a loan on anything I was "destroying". Write off the mileage and etc. Save your company alot of money.

I know the "normal" way of doing it is to lease or buy a brand new truck and take the tax deduction, maybe you could try it Dave's way for a year or 2 and if you don't like it you could EASILY get a loan for a nice new truck and go back to the "normal" way.

[Flash Gordon]

Does it have to be white to qualify for a tax deduction?

[Flash Gordon]

Cpa?


Certified Public Accountant

You'll have to forgive Smack. He's a G-Man

:dblthumb2:

[dcjredline]

You'll have to forgive Smack. He's a G-Man

:dblthumb2:
lol

[slimnib]

After reading all the posts on taxes, I suggest that you guys stick to Detailing and get some professional advise regarding financial and income tax matters.

Harv

[Hooksetter75]

I should that we do take advantage of using the mortgage as a write off as well as we do have a mobile service as one side of the business and have erected a 20x40 covered pad on one side of the house for VIP details and of course BBQ, parties and such ;)