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In this brief video, tax expert Mark Kohler explains how a contractor can maximize tax deductions for a large work truck. He outlines the "actual expense" method, which allows the owner to deduct all operating costs—including fuel, repairs, maintenance (including cleaning), insurance, registration, and tires—directly on the tax return. He then adds that the truck’s depreciation can be claimed, enabling a substantial first‑year write‑off (often via Section 179 or bonus depreciation), effectively allowing the contractor to recover a large portion of the vehicle’s cost in the year it’s placed in service.

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