Can I write off a truck?

Question

I owe 2 rental properties, (5 doors), in California. The 1st property is a single family home which is about 5 miles away from where I live.  The 2nd property is a 4plex which is about 140 miles away from where I live.

My question is, am I able to buy a truck, and be able to write that truck off?

I need to buy a truck because my old one is done. It’s too old.  It doesn’t make it to the 4plex.  So I need to get a new truck. But trying to figure out if I get a new truck, will I be able to use that as a tax deduction?

Linda Weygant · Answer

The short answer is - probably not.  At best, you'd get a mileage deduction for miles driven to take care of landlording business such as maintenance, rent collection, inspections, etc.

You *might* be able to deduct such a vehicle if you were in the business of rehabbing your properties yourself - doing all the work, hauling the materials, etc - and all of the miles driven on the vehicle were specifically related to the property.  You are unlikely to rise to that level of use with 2 properties.

Michael Plaks · Answer

@Scott Gadea

I'm with @Linda Weygant. The answer is probably no. I'd say almost certainly no.

The tax law allows you to deduct "ordinary and necessary" business expenses. While you do need some means of transportation to visit your rental property, you would not normally buy a new truck for occasional trips. Why not a copter, then?

You will be entitled to some deductions related to the use of the truck but not "write it off" as you wish to.

Michael Plaks · Answer

The Japanese have discipline. The thought of my fellow Houston drivers holding a pile of metal over my head scares pants off of me.

Glenna Wood · Answer

Sure go ahead and marry a girl with a truck then she'll get half your property... 😜😎

Couldn't agree with you more that today's truck prices are eye popping. And if it has less than an 8' bed, it's not a truck but a SUV with a big open cargo space. But I grew up on a farm where pickups were work vehicles not vanity displays. If I was hauling horses on a hot day you rolled the windows down.

There some 0% interest deals now that may lessen the sting of car payments again. Personally I buy used. Hate buying anything where the value is headed to zero.

Michael Plaks · Answer

I was exaggerating my point. If buying a new truck to visit your rental property once a while is a legitimate business expense, then what stops us from buying a helicopter.

Michael Plaks · Answer

Even if you could write it off, it would only give you a discount on the truck. Example: if you buy a truck (or anything, for that matter) for $40k and completely write it off, and you're in a 20% tax bracket (just for an example, not a real bracket) - you would get a $8k tax relief. So, instead of $40k you essentially pay $32k for the truck. Never use a tax deduction is a justification/excuse to buy anything.

I wish I had a helpful advice on how to get something you feel you need but do not feel you can afford. Other than the obvious: try to fix your current one if possible/sensible; buy a used one; look if leasing is cheaper and makes sense for you; see if you can borrow someone else's until your finances improve - there're sites like Turo; marry a girl with a truck if everything else fails...

John Teachout · Answer

Fix your current truck. I see people driving around in pickups from the 60s and 70s around here all the time. If it's not going to break in half from rust, it's repairable.

Christopher Smith · Answer

How about one of these?

https://www.cnn.com/2020/08/29/us/flying-car-successful-test-in-japan-trnd/index.html

Scott Gadea · Answer

@Michael Plaks

Oh gotcha.  Flew right over my head.  I just wanted to see if there’s a way to write off a truck, because I no longer able to use my old truck.  It’s done.  So I was trying to see if it were possible to write off a new truck.  But I realize that’s not possible.  I just have a hard time justifying buying a new truck.  Truck are just way too expensive.  I would much rather spend that type of money buying another property.  But I just feel that I’m back up against a wall, needing a truck. I have a little side Business hauling dump trailers to people, and renting them out so I need a truck for that.  But the business is so small that it’s not much money, or how I make a living.  It’s just a little extra money in my pocket. ￼￼

I don’t want to spend the money for a new truck.  I haven’t had a car payment in a long time.  Any advise?

Scott Gadea · Answer

@Michael Plaks

I’m not sure I follow what you mean by “Copter”?

Can I write off a truck?

Most Popular Reply