Business deduction

[bingorocks14]

I have a lawnmowing service, sole propiertorship.  I bought a truck for the business.  It was purchased in my name and is insured under my business insurance.  My employee uses it 9 months of the year.  During the winter I use it.  I have a d/b/a company.  Can I deduct the principal I pay annually for the truck as well as the interest?

[JeffreyR77]

No, you cannot deduct the principal you pay for the truck.  The truck is an asset of your company. 

You are correct to deduct the interest you pay on the loan on the truck. 

You should depreciate the truck as a depreciable asset of the business.  The ordinary depreciable life of a truck in a business is 5 years. 

The Tax Cuts and Jobs Act of 2017 allows Special Depreciation of 100% of the asset value in the first year if you so choose. 

TurboTax will guide you to choose how you wish to depreciate your truck this year.  

Deducting Depreciation on My Truck and Other Assets

[Opus 17]

Depreciation is essentially an allowance for "wear and tear."  The wear and tear on your truck is a business expense that you can deduct.  However, when you sell the truck, you may have a taxable event if you sell it for more than the depreciated value.  For example, if the truck has a life of 5 years, and you sell it for $2000, 6 year from now, that $2000 is taxable income, even though it would not be if you sold a used personal vehicle.  You deducted all the original value, now if you get more value by selling it, that becomes taxable.

Also, in the winter do you use it for work or personal use?  That affects things.  @JeffreyR77 can you return and address this issue?  I know what to do if you use a personal vehicle in business, but not if you use a business vehicle personally.  Maybe they are the same if this is an unincorporated sole proprietorship.