Mark Kohler shows why a $60,000 truck used 80% for business should skip the standard mileage deduction. Expensing the full $48,000 through Section 179 plus fuel and repairs beats the mileage method's $7,200, though it requires better record-keeping.
Example, I've got a $60,000 truck and I'm going to be 80% business use, 20% personal.
I'm going to go to the lake. Okay, I'm going to bring that up. I'm going to take the boat up to the lake. I need this truck for some fun too. I'm going to go shoot a gun, something.
$60,000, I take 80% of that, that's $48,000. I can take that 48 grand in year 1. Even if I had an auto loan, I put down $1,000 and drove off the lot with this kick-butt truck and I get to write off $48,000 plus fuel, plus repairs, plus maintenance, you got that measly $7,200 deduction.
So with the ability to take a greater write-off there, which you can get with actual, including the bonus depreciation, that stuff you're talking about, you got to track all that crap. Mileage, I just got to track that I went to a business, out of business purpose for that mileage. I'm not keeping my gas receipts. I'm not doing all that. It's simple. It's easy.
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