Trucking: Are There Tax Benefits to Leasing over Buying?
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- Опубліковано 17 лип 2024
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Just got off a conference call with this guy. It was worth every penny.
Value creation flies in the face of the scarcity mindset. This gentleman is creating massive value for many through mental capital and relationship capital. This is what a catalyst looks like.
Glad to see you back we need to get you on trucking hustle!
Oh yeaaaaa!!!! Man gotta book this boss!!
David! Glad to see you posting again! 🙏🏾🙏🏾
Im glad your back. This is useful information for when i get my truck
Welcome back David. I have missed your videos very much. You do excellent work.
Glad to see you back man nothing but knowledge thanks wish the best
One important note, a highway tractor is depreciated over 3 years, not 5. Also, there are other methods to write of the depreciation rather than straight line, such as a declining balance method. You also have the option to not write off the full amount and instead write off up to a salvage value of the equipment. This can help avoid paying capital gains taxes if you sell it later on so the sale won't be recognized as a profit. These various methods give you a lot more flexibility to write of the money in the way that benefits you the most vs leasing you must write it off as you spend it.
Also important to note, if you do finance the truck, any interest you pay us also written off. That portion is not part of the depreciation amount but written of as an expense.
Man!!! Where have you been bro!!!???? Glad to see you back on here giving us great info.
Nice to see that you’re back
The OG is back!! Great content
Thank you so much! It was because of this video that we made the decision to buy and not being stuck on the idea of leasing. Thank you so much
Thanks for the video!! Been waiting on a video
Good Afternoon Bro 😊 Good Information And I'm Glad To See That You Are Back And Nice New Spot . ( Office )
Great information!! Thanks, you are ways on point!!
Hey Mr.Mcgill glad to see you back on here
thanks so much for doing these types of videos
Always great content 👊👊
I didnt know what happened to you I think the last video I watched you was on the beech somewhere glad to see you back and making videos they are so helpful and Ive learned alot. Im at the ponit where Im at where Im scared to leave my job but Im going work till the spring and then Im go.ing to make my move . So Ill be reaching out for consultation and using your tools
Thanks for sharing your knowledge. God Bless.
He explain str8 to point and understandable
Good video man
can you make a quick video on how to hire a cdl driver the(requirements)...there is no video on UA-cam about that. Thanks
Education is power!
Thanks bro 🙏🏻
Great job man
GREAT info! TY.
TRUCKING FROM SCRATCH
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Thank you 🙏 researching section 179
Great point! A tax professional is always the best way to go.
Can you please go over the different permits needed to travel through states like NY, KY, OR etc? How to get them and what they cost.
Great info... 👍👍👍
Welcome back
👍 great. And helpful.
What a combo, a truck driver and accountant.
He doesn't have a CDL A.
lil bro keep making your videos 👍🏿👍🏿
David
Good evening
Thanks for sharing
Regards
Carlos Aguirre
Sunday 8 November 2020
Welcome back Geee
Wow! Just...wow...
This is true with a traditional operating lease, but you can find capital leases that let you put the truck on your balance sheet and allow you to take the depreciation.
That would make the treatment of the lease the same as buying the equipment, which supports my original stance which is tax benefits should be ignored when considering lease vs. buy.
I Saved this one
Can you please make a video explaining how to keep track of vehicle maintenance?
U back fam!!???;
Can you show us how to files the paper logbook properly?
Wow! Thank you D-Mac!!!
As in all your presentations great information. But please correct me if I am wrong, in a lease your financials do not reflect a long term debt obligation as a purchase would. But I was not familiar with the section 179, I will read it over. Thanks again David.
Welcome back man! I thought you went M.I.A after your truck caught fire lol
Nah my client’s truck caught fire
Which is better though? If you lease and your truck breaks down don’t you get a replacement?
Hello David,
I hope you are healthy and doing well. May I ask, do you do personal taxes for company drivers? Or, can you recommend a CPA or someone who works with and has knowledge of filing W2 taxes? Much appreciated and thank you for all the videos and knowledge you put out on your channel. Much respect ✊🏼
Hi, I’ll be updating my video descriptions very soon with that information. Thanks
So do you prefer leasing or buying and why
Great info. Now why would anyone lease a truck, pay the value of the truck, just to return the rental? What am I missing here?
Correct me if im wrong, but depreciation is only for 3 years not 5?
What if I’m renting from Penske that’s a write off too ??
Does yours website give applicable coaching tips for those who are looking to buy and use cargo vans as opposed to box trucks and 18 wheelers? @DavidMcGill
If you finance, can the interest be deducted too?
is the chain from jacoje ?
Brother, I've been subscribed to your channel, and get all notifications, fora long time now... I enjoy your content... At least, 70% of my trucking knowledge comes from you. And I appreciate it. Im told I won't really find a financing being I have zero experience in the business.. I got my llc. Money ,$20+k,ready go. And I'm stuck.. anything you can share with us to get around this. I know you don't drive either.
Many good trucks at 20k range in the auctions
If you decide to lease, can the total amount paid for the lease each year be deducted? In this example you can deduct the 52k in the first year. Does that apply for each year (52k each year) you are under lease with that truck or trailer?
Yes
What do write offs do you don't get that write off money back so
Nah that’s not how taxes work
This is a good start, but please consider the opportunity costs associated with buying something outright compared to making an investment for 5 years that might earn a better rate of return. Throw in the lease payment loss and it might benefit owner operators to NOT buy it outright. Additionally, 2022 IRS allows up to only $25,000 for 179
How can I get a consultation with you?
davidmcgill.as.me
Do you have a IG
Theres one comon mistake everyones doing it
First of all know your tax bracket (either you are llc c'corp or s'corp), lease a truck and put aside your % bracket from every check so right before the year ends cash out the truck, instead of just giving it away to the irs.
Number 1 reason why small companies dont grow fast, nobody saves money throughot the year so they ends up owing tens of thousands next year which leads to instalment agreements
THATS WHY YOU ARE BROKE ALL THE TIME :))))
My tax bracket is %26.4 and I make litlle over 300k from a single truck each year. Instead of paying to the irs, i save 26.4 on each check and I cash out a leased truck December 31st
Greetings, I have to file my taxes for the first time as an owner. Any tips for as write offs in diesel. Also my person car, mortgage. Glad your back bro. Thanks
I strongly recommend you use an accountant familiar with trucking for the first year, and probably every year. However, you can use them the first year then do what they did after that... but you must keep up with and understand changes in the state and irs codes. Personally, I kept very good and organized records and my CPA gave me a good rate on handling my taxes.
@@lifestream4191 Thanks for the info.
David can you make a video on how you pay yourself? @David McGill
Type in David Mcgill "how to pay yourself". He have a cpl videos on it.
How can I contact you
davidmcgill.as.me
What about the FMV leases? These are not lease purchase.
No after the fmv lease you return the truck for a new truck. And there is no balloon payment. You only pay for what you drive which is the depreciation
I’m talking about the lease that most fleets opt for
Not really helpful IMHO... there are DISTINCT advantages to leasing. In a purchase scenario whether you are using the IRSC rule 179 or the 5 year spread, the MAX you can right off is (in your example) $52,000. Whereas with the lease, you can write off the $52,000 EVERY tax season as long as you are paying lease payments.
I'm not talking about any other advantages of leasing or buying. My only point is "tax benefit" is not an advantage of leasing & should be ignored in the lease vs. buying analysis.
My example was getting as close to an "apples to apples" comparison as possible with the numbers. You are right, you can write off the $52k in lease payments every year, but then we would be comparing a $156k lease (assuming it's a 3 year lease) to a $52k purchase. If the truck costs $156k (just like the lease truck) then the MAX you can write off would be $156k.
My original point still stands; TAX BENEFITS should be ignored when deciding whether to lease or buy.
@@TruckingFromScratch 🔥
You can not depreciate a seminover 5 years. You have to depreciate a semi over 36 months.
Unless you pay cash for the semi using sec 179 to write off the entire truck is going to create a income matching issues. So others understand. if you spent 10k on truck payments the next year that 10k is mostly all taxable. You'll generally only be able to deduct the interest and most repairs. Furthermore sec 179 100% depreciation in the first year is being fazed out through the Trump Tax plan.
I like your videos and I like the fact you're trying to help, but some of the tips you're giving is wrong.
If it's 3 years, 5 years, or even 10 years, it doesn't change the point that using section 179 you can deduct the cost in the year of purchase.
I'm not going to address the matching issue here because too much would go into explaining book/tax adjustments & why that doesn't create an issue.
You said some of the tips I'm giving are wrong and the tips I gave were "lookup section 179" and "speak to an accountant or tax attorney". Thanks for the feedback though.
Think you better update your videos with Brandon, I mean Biden in the big house to 82,000 for the same trucks.