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Level 2
February 24, 2022
Question

Truck Tractor over the road use.

  • February 24, 2022
  • 13 replies
  • 18 views

Client is a single member of LLC. She operates her business which is transporting dry goods over the road. The Freightliner Cascadia is not under her name. It is under someone else's name who helped her to acquire the truck. She has been paying the truck and all related expenses using her LLC. Can she deduct all the truck expenses under her schedule C?

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13 replies

February 24, 2022

Expenses, yes.

Depreciation, maybe.

In my opinion, if there is a contract of ownership between the taxpayer and the person who holds the title that the taxpayer, then the taxpayer can claim depreciation.

IRonMaN
Level 15
February 24, 2022

"someone else's name who helped her to acquire the truck"

That makes it sound like her truck.  The title is in someone else's name and that other someone actually paid for the truck with their own dollar bills?

Slava Ukraini!
cedurandAuthor
Level 2
February 24, 2022

Correct, the truck is not under her name. She is paying back the owner in a monthly basis. 

February 24, 2022

@cedurand wrote:

. She is paying back the owner in a monthly basis. 


 

That makes it sound like she is purchasing it to me.

qbteachmt
Level 15
February 25, 2022

This makes me a bit uncomfortable: "She has been paying the truck and all related expenses using her LLC. Can she deduct all the truck expenses under her schedule C?"

in concert with: "She is paying back the owner in a monthly basis."

Because it isn't clear if there is a Lease or Loan agreement between these two parties. At first, it seems like she was making the Payments to the lender, but with both parts, she is paying the other person directly.

Are you trying to write off the Truck Payments?

 

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cedurandAuthor
Level 2
February 25, 2022

Yes, and all other expenses related to the truck so it can be in business. My doubt is that the truck is not under the llc neither my client's name. It is under another individual's name that lent the money to my client. 

Intuit Community Champion
February 25, 2022

If it was lent to taxpayer, why is the truck not in the taxpayers name?

BobKamman
Level 15
February 28, 2022

Is the owner of the truck considering it a lease, reporting the payments she makes as rental income and depreciating the truck (probably showing a Schedule C loss)?  This used to be a popular tax shelter, especially in the days of investment credit.