Mileage and Depriciation

When I incorporate will I be able to claim mileage and fuel costs on my taxes on a truck that I personally own and not owned by the company? I will of course contact my tax man but I was wondering if anybody could give a quick answer. Thanks in advance Seann

[FloridaBoy]

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Hey seann, It is my understanding in your position of the company not owning the truck you will have to pick one of the options that you listed, * Mileage if i am not mistaken it is 55cents a mile, and that includes truck payment, ins. fuel, etc. * Other way is done by percentage, portion of truck payment, portion of insurance, portion of fuel, etc. I am not an accountant, but thats the way it has been explained to me. Hope this helps.

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Thanks FloridaBoy! If i sold the truck to my company one would think i could deduct every thing no? Im paying for it anyway already, i might as well get something for it. What do you think?

[picframer]

Originally Posted by Seann

Thanks FloridaBoy! If i sold the truck to my company one would think i could deduct every thing no? Im paying for it anyway already, i might as well get something for it. What do you think?

Where I live you have two options but both require a log of every mile driven and you have to keep the log for seven years.

If you are a sole prioitor then you can roll any asset into the company at fair market value, you need the original purchase receipt, if you have it you can claim a portion of that tax originally paid back, you depreciate depending on the value of the asset in question, generally from one to five years.

If the truck for example is 100% used for te business and your log supports this, all expenses and maintenance is a 100% write off against revenues.

Once again, this is the rules where I live