Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-23-2014, 10:21 PM
Junior Member
 
Join Date: Mar 2014
Posts: 1
Mobile Grooming Van - Equipment or Vehicle?

My wife is a mobile dog groomer and owns her own business. She has a mobile grooming van. Is the van counted as a vehicle or as a piece of equipment? This would affect repairs and maintenance, gasoline, depreciation, etc. The built-in electric generator runs off of the same tank that the van uses, which means she can't get the credit for gas taxes. Is that correct?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-25-2014, 01:08 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Quote:
Originally Posted by wegasque View Post


#1;My wife is a mobile dog groomer and owns her own business. She has a mobile grooming van. Is the van counted as a vehicle or as a piece of equipment?



#2;This would affect repairs and maintenance, gasoline, depreciation, etc. The built-in electric generator runs off of the same tank that the van uses, which means she can't get the credit for gas taxes. Is that correct?
#1;it is a biz related / use vehicle, NOT equipment; for depreciation of the biz vehicle, you need to fill out Form 4562 to attach to your tax return.You need to enter the depreciation deduction on Section A, Line 17 and line 13 of SCh C of 1040. You must complete and attach Form 4562 only if you are claiming depreciation on property placed in service during 2013;Depreciation on listed property also used for personl ause less than 50%, regardless of the date it was placed in service; orA section 179 expense deduction.Other car/truck exp needs to be reported on line 9 of Sch C of 1040.
one way to reduce your federal tax liability is to deduct the business use of your vehicle. You need to keep track of all of your biz-related mileage and transportation expenses. To do this you can keep a journal or spreadsheet that documents when you traveled, how far you went in miles, what the purpose of the travel was and what type of expense you incurred. If you paid a parking fee document the amount and, if possible, collect a receipt. Allowable expenses for operation of a vehicle for business include all the associated costs of owning a vehicle. Fuel, oil, insurance, repairs, maintenance, depreciation, and loan interest are all permissible tax deductions. A tax write-off can also include lease payments if you lease rather than own the vehicle.



#2;it depends; there are two methods used to determine total costs for the write-off. These include the standard mileage and the actual cost method. The standard mileage method uses a rate that is determined each year by the IRS and is subject to change. You simply multiply business miles by this rate to find a deductible cost.For the actual cost method, total all associated costs ,i.e, depre/ reapirs or gas , car insurance costs etc of vehicle operation and determine an allocation for business use. For business owner, keep mileage records to prove the personal and business use of the vehicle. Total business miles divided by total miles driven will give you a percent of business use. Multiply this percentage by the total costs to determine the deduction to claim. Vehicle expenses are reportable on the tax form of the business. For the sole-proprietor, this would be form 1040 Sch C.You can deduct the costs larger of std mileage or actual costs.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Received a 1099 for Sale of Equipment? barth4737 Income 1 03-01-2014 02:50 AM
Equipment lease payments debbiej61 S-Corporation 3 01-30-2014 10:47 AM
1099 for equipment repairs nuffsaid Sole-Proprietorship 2 02-17-2011 08:15 PM
Medical Equipment Depreciation ftnfnl Depreciation 1 10-23-2008 07:28 AM
How can a business depreciate used furniture and equipment? nilbos Depreciation 1 02-07-2008 05:39 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning