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New Member
posted Jun 4, 2019 9:53:42 PM

I was making payments on a semi truck I bought two years ago but I decide this year pay it off, can I deduct this amount in my taxes

The amount of payoff was $17000

0 3 529
3 Replies
Level 15
Jun 4, 2019 9:53:43 PM

No ... only the interest paid is a deductible expense on the tax return.  The principle portion of the payment is covered  by depreciating the asset per the IRS prescribed methods ...  a semi truck is depreciated over 3 years ( on 4 tax returns) so if you have not been depreciating it you need to do so now and amend the prior year returns as well. 

Level 15
Jun 4, 2019 9:53:44 PM

According to the ProSeries depreciation listing, tractor = 3YR; trailer = 5YR.

Level 15
Jun 4, 2019 9:53:46 PM

Correct the tractor portion is 3 years and the trailer is 5 years as they are separate assets ... the OP said semi truck so I went with tractor since that is synonymous in trucker lingo.