“it is used 100% in our business its is valued at 13,000 owe 11,797 on it
intrest on the loan this last year was 1,026.22 what can I do to deduct any or all of these expenses “----->Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179.When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).Now, while it's true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That's the whole purpose behind Section 179 - to motivate the American economy (and your business) to move in a positive direction. For most small businesses (adding total equipment, software, and vehicles totaling less than $139,000 in 2012), the entire cost can be written-off on the 2012 tax return. The IRS allows a deduction for any expense necessary for the business to operate. A comparative amount of the utilities, depreciation and loan interest is included in the expenses for busi. operation . You can deduct the cost of these purchases and the total ancillary costs associated with the purchase to get the item ready for its intended use. note that the deduction, if any, ends up on the form appropriate for the form of business organization -- Schedule C to Form 1040 if the business is a sole proprietorship, Schedule K-1 and Form 1065 if it is a partnership, and Form 1120 if it is a corporation. Special form 1120 if it is a subchapter S corporation or personal holding corporation, etc.you need to file form 4562 to depreciate your tractor.