Three Tips for Getting a Truck Tax Deduction

January 27, 2012

If you've purchased a new truck in the last year, you may be able to file for a truck tax reduction on your tax return for this year. While not every vehicle will be eligible for a rebate, there are a number of different circumstances under which you can get a Ford Ranger tax deduction or a Toyota Tacoma tax deduction, and other vehicles are eligible as well. Read on for the three most common ways of getting a deduction off of the purchase of a truck that you've made in the last year.

Number 1 -- Cash for Clunkers

During the year of 2009, the federal government offered a rebate for the purpose of encouraging Americans to purchase new cars and help to revitalize the economy. Called "Clash for Clunkers," this program provided money toward to the purchase of a new vehicle to Americans who opted to exchange their older vehicles for new cars. If you exchanged an older, high emissions vehicle in exchange for the truck that you purchased in the last year, you may be eligible for the Cash for Clunkers rebate.

When you're filing your federal tax return, look for the section that includes information on the Cash for Clunkers program. Simply answer the questions appropriately to claim your tax rebate.

Number 2 -- Fuel Emissions Tax Rebate

The federal government also provides rebates and tax deductions to people who have purchased vehicles that meet certain standards for low emissions and pollution levels. If your truck has a low enough emissions rating, or if your vehicle has a high enough gas mileage rating, you may be eligible to receive a partial deduction on your vehicle. The reasoning behind this is that vehicles that pollute less will cause less damage to the environment. In order to determine whether your truck qualifies for this deduction, speak with a dealer or consult with a representative at your local DMV branch office.

Number 3 -- Business Use

If you've purchased a truck you use in part or completely for business in the past year, you may be able to write off a portion of that cost accordingly. The exact amount of money you'll be able to deduct from your tax return for a truck you use for business depends both upon the type of business and the percentage of time you use that vehicle for work. Gather up any receipts and other documents you have from when you drove the truck for business related purposes. You'll need this information to construct a portfolio of your use of the truck that can back up your claim for the percentage of time you used the vehicle for business. Follow the instructions as you fill out your tax return to claim the deduction.

If you have any other questions, speak with a tax advisor for additional information.

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