Question by ladydaisy: I bought an ice cream truck is that a home based business?
Do I need a tax id # is that considered a home based business
what can i write off? Can I write off the truck ?the interest on my truck payments?
Best answer:
Answer by Spock (rhp)
you can file the business on Schedule C to form 1040 and then would not need an EIN. You do need the appropriate state and local licenses — whatever they are.
you depreciate the truck, see form 4562.
the interest paid on the loan to buy it is deductible on your Schedule C. so are fuel, repairs, insurance, license fees, etc. [Tires should probably be added to the value of the truck becuase you’re depreciating the cost of the first set of tires.]
{all the “ordinary and necessary” expenses of running the business are deductible, even if that means you had a loss.}
[there are limits on losses — you do have to show a profit in two years of each five.]
if you have a profit, you’ll also need Schedule SE.
does this help?
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