I just sold my old personal pickup that I used for doing construction side jobs because it was getting to the point where it wasn’t reliable for my personal life.

I plan on buying a newer truck anyway because it is needed in my personal life.

Assuming my projected income is $15,000/year from the side business, am I shooting myself in the foot tax wise by not waiting for the start of new year?

I would like to be able to write off a portion the sales tax and down payment if possible.

It will have a gvwr over 6,000 if that matters.

Thanks!

  • Diamondhf@alien.topBEnglish
    1·
    11 months ago

    With only $15k income from this business, the truck is irrelevant. After standard business deduction you have nearly 0 tax liability to begin with

    • taxref@alien.topBEnglish
      1·
      11 months ago

      “After standard business deduction…”

      There is no such thing as a standard business deduction. The standard deduction can be applied to ones AGI. but the OP emphasizes his hobby is only side work. He would not get a standard deduction for his hobby income and another for his other income.