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NE Iowa | So I did talk to my tax guy yesterday. He seemed to think that if I were to choose to deduct the direct expenses of the truck on my Schedule F (either 75% per discussion above or direct mileage ratio if that is > 75%), that those expenses could include the depreciation expense of the truck - effectively 'selling' the truck from my non-farm related assets to my farm assets. Assuming this is around a $20K asset, and also assuming that $20K is equal to or less than the original truck cost less the mileage deduction that I have reported in prior tax years; then I can compare which method will result in the lower tax liability for 2019 and future years. Of course, if I do put the truck as a farm asset, really will never go back to deducting the mileage and will likely have to pay some taxes back if/when I sell the truck (assuming the truck has more value in reality than it's depreciated value). | |
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Farm tax question - pickup truck
