Can loan truck payments be deducted in Schedule C for an LLC ?(Trucking Company)

Forum|Forum|6 years ago
December 7, 2019
1 reply
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One of my clients owns trucking company (LLC) so hes filing Schedule C and including all his deductions as part of his return. He mainly has on deductions since he recently started operating in September last year. He's purchased 2 trucks (17k lbs each) and has given a down payment of $8k per truck, as well monthly car payments on his newly acquired trucks totaling aproximately $10k. His income was $106k for the year.

He states that no other deductions were incurred for 2018 and the above are the only 2 deductions he had. Can payments on this loan or the down payments be included in schedule C (and if so, which line on the form)? I'm already depreciating both trucks for this year.

Thank you.

ProSeries Professional

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Best answer by abctax55

Loan payments are not deductible. The interest on the loan is (times the business percentage of use of vehicles). Neither are the down payments.

You capitalize and depreciate the entire purchase price of the asset, not just the down payments (your question isn't clear as to the amount capitalized/depreciated).

Why are there no expenses of operating the trucks (at least gasoline...).

I think you need to provide more detail. Something doesn't quite add up.

abctax55Answer

Level 15

Loan payments are not deductible. The interest on the loan is (times the business percentage of use of vehicles). Neither are the down payments.

You capitalize and depreciate the entire purchase price of the asset, not just the down payments (your question isn't clear as to the amount capitalized/depreciated).

Why are there no expenses of operating the trucks (at least gasoline...).

I think you need to provide more detail. Something doesn't quite add up.

HumanKind... Be Both

Just-Lisa-Now-

Intuit Community Champion

Agreed, working 2 trucks for 4 months of the year has to have some other kinds of expenses....even if the trucks just sat there, they have to have insurance on them.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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