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Old 11-03-2016, 02:39 PM
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Vehicle used for Personal and Business

I am a full time Mechanic but also haul scrap metal a couple of times a month. I use my personal vehicle to haul and have made some repairs and improvements to the vehicle to better be able to do this. Can I deduct any of these improvements/repairs? I am also considering purchasing a trailer to slowly increase the amount of hauling I do. Can I deduct that?
Thanks in advance for any helpful info.



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Old 11-03-2016, 05:16 PM
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I am a full time Mechanic but also haul scrap metal a couple of times a month. I use my personal vehicle to haul and have made some repairs and improvements to the vehicle to better be able to do this. Can I deduct any of these improvements/repairs? ====>>yes as it is your biz related expenses you can claim them on your Sch C of 1040; 'Ordinary and necessary' expenses for your business are generally tax-deductible you can even claim auto expenses for travel;

I am also considering purchasing a trailer to slowly increase the amount of hauling I do. Can I deduct that?======>>yes; Some expenses are recorded as assets and their costs recovered over time through depreciation. Such expenses are called capital assets because their costs are capitalized as assets of the business and the cost is deducted over a period of time through depreciation. Examples of capital expenses include computers, furniture, equipment, and real estate.so you need to capitalize/depreciate yur biz related trailer on your SChC of 1040 to reduce your self employment tax liability.



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