It's Schedule C (over the road trucking, long haul) AND WHAT TYPE OF VEHICLE should I choose on PART I, line 3. The semitrailer can't be driven on it's own. It has no engine but it's logging miles like the tractor (truck) that is pulling it!
Am I allowed to have a 10000 lbs semitrailer (18 wheeler trailer) on the vehicle list on my schedule C?
Its considered equipment. If you bought it in 2006 you can take the Sec 179 expense deduction. Otherwise you would depreciate it over its useful life. You need to file Form 4562.
Reply:You are not allowed to list the trailer on the vehicle list. It is equipment.
Your tractor is also equipment, not a vehicle on Schedule C.
Reply:It is not a vehicle. Where you put it depends on whether you claim the section 179 deduction. If you do, you list it on form 4562 at the top of page 1. If you do not claim the deduction then it goes towards the bottom of the form. In the year of purchase you put it on line 19 and in subsequent years it goes on line 17.
You obviously have a significant amount of money invested in this business. Have you thought of engaging a CPA? If you keep an orderly set of books you may find it saves you money and tax in the long run. Good CPAs do not particularly enjoy adding up columns of figures from receipts in a shoe-box. It is much better to have clients who provide reliable figures so they can be turned into a tax return easily. Then the CPA can spend more time ensuring that you receive maximum tax benefits. It saves you on fees, saves taxes (potentially) and gives the CPA greater profit than a shoe-box job. Everyone wins.
phlox
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