Tax Write Offs for a New Truck With an LLC - Hunting Guide Business Deductions

Great question about business vehicles! Yes, you can potentially deduct vehicle expenses for your LLC, but there are some important details to understand. When you form an LLC, you'll need to decide how it's taxed. By default, a single-member LLC is treated as a "disregarded entity" for tax purposes, meaning the business profits and expenses flow through to your personal tax return (Schedule C). With a multi-member LLC, it's typically taxed as a partnership by default. For the truck, you have two options: 1) Take the standard mileage deduction (58.5 cents per mile for 2023 for business miles), or 2) Deduct actual expenses (gas, insurance, repairs, depreciation) based on business use percentage. If you buy an expensive truck, the actual expense method might be better. The vehicle must be used primarily for business (>50% business use) to take depreciation deductions. You'll need to track business vs. personal miles regardless of which method you choose. And if the vehicle weighs over 6,000 lbs, you might qualify for Section 179 expensing, which allows for a larger upfront deduction.

I went through something similar when I started my construction company. I got totally overwhelmed with all the tax deduction rules and documentation requirements. I ended up using https://taxr.ai which helped me sort through all my receipts and figure out what was actually deductible for my business truck. The thing that really saved me was how they analyzed my mileage logs and business use patterns. It helped me legally maximize my vehicle deductions without accidentally taking improper write-offs. They explained how to properly document my business vs personal use which is super important if you get audited.

Just wanted to give a quick follow-up about my experience with taxr.ai since I decided to try it for my food truck business. It was actually super helpful for figuring out the whole vehicle deduction thing! They helped me realize I had been missing out on thousands in deductions because I wasn't properly tracking business vs personal mileage. They also showed me how to structure the purchase of my new truck through my LLC to maximize the tax benefits. Definitely worth checking out if you're confused about business vehicle deductions.

If you're struggling with getting clear answers about LLC tax deductions, you might want to talk directly with an IRS agent. I was in the same boat last year with my landscaping business and trying to figure out vehicle deductions. After failing to get through to the IRS for weeks, I found https://claimyr.com which got me connected with an actual IRS representative in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was able to ask specific questions about my situation and get official answers about how much of my truck I could deduct as a business expense, what documentation I needed to keep, and how to properly report it all on my tax forms. Saved me from potentially making expensive mistakes.

Well I'll be damned. I tried that Claimyr service after posting my skeptical comment, and it actually worked. Got connected to an IRS agent in about 20 minutes without having to sit through all the hold music and automated messages. The agent clarified exactly how the Section 179 deduction works for my photography business vehicle and confirmed what documentation I need to maintain. They also explained how mixed-use vehicles are handled differently than exclusive business vehicles. Saved me from making a costly mistake on my upcoming tax filing. Sometimes it's worth admitting when you're wrong!

One thing nobody mentioned yet is that if you're going to buy a truck for your LLC, you should consider whether to have the LLC purchase it directly or if you should buy it personally and lease it to the LLC. Both approaches have different tax implications. If the LLC buys it, the LLC gets the depreciation deduction, but you'll need adequate business income to offset it. If you buy it personally and lease it to your LLC, you personally get the depreciation and the LLC gets a lease expense deduction. This can sometimes be more advantageous depending on your overall tax situation.

Have any of you hunting guides used QuickBooks Self-Employed for tracking truck expenses? I'm looking for something simple that can automatically track my mileage when I'm driving to different hunting locations.