RE:RE:RE:RE:RE:talks with striking workers break downIf you run a business pickup trucks, Crummies and other transportation venues must be kept up to date, There is nothing worse than a crummie faltering halfway to the job, holding the crew up from producing. Vehicles for Bush bosses, forest cruisers and other managers, supervisors , crane trucks have to be reliable.
They are not as expensive as most think. If they are purchased a corporate vehicle is taxwise wrote down (Tax deductible) 15% in the first year then 30% of the residule ballance each and evey year there after to 0 if kept that long.
Very few companies buy their pickup fleet. Instead they are on a lease agreement. Under that arrangement the total monthly lease payment is a 100% Tax deduction as are all repairs and anyother costs related to the vehicle and it's operation. If the company should decide to keep the vehicle. They can at the end of the lease buy it for pennies on the dollar of it's original value.
Managing taxes is one of the most important tasks of the CFO. Doing so can lower the tax bracket a corporation files under. So new pickups and trucks are not necessarily a bad thing to see in a prosperous corporation.
Some of our company leases were stretched out till the leasorachieved his total required price. when that was achieved we just kept the vehicle. The cost to us was a 100% write off. With no recapture on equity as long as we never sold it. Which we did not but rather kept it for a yard vehicle as long as it ran then threw it in the junk pile for parts.
Personal and corporate finance are worlds apart. In a corporation if financially managed right. The only thing it pays income tax on is the retained profits.
All expendatures made for the purpose or intention of generating Capital are Tax deductable.
People pay tax on their income, Companies pay tax not on income but rather on the amount they did not spend. (Profits)