# Buying Vespa to do DoorDash Tax Deductible?



## SHYY (Nov 13, 2015)

Hi,

Can the monthly finance payment say $150 a month be tax deductible? I know car lease is tax deductible but what about a Scooter that is financed instead of leased? I will have to use the actual expense method.

Thanks for your time.


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## SHYY (Nov 13, 2015)

Thanks for the response, I thought we weren't allowed to use the Scooter since a Scooter doesn't require as much maintenance as a car. I live in New York and plan to do this for side money. I get out early so I can work 4-6 hours a day. I made a simple Excel file to simulate my situation if I had worked for 2017 and 2018. On avg I get 10-12k if at my lowest I make 40 and highest I made 60. Each date of the calendar is random, some days I work and some I don't.



Mears Troll Number 4 said:


> Assuming we ar talking about the US?
> 
> Only the business portion is deductible..
> 
> ...


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## UberTaxPro (Oct 3, 2014)

Mears Troll Number 4 said:


> Assuming we ar talking about the US?
> 
> Only the business portion is deductible..
> 
> ...


Are you joking? You can't use the SMD on a scooter



SHYY said:


> Hi,
> 
> Can the monthly finance payment say $150 a month be tax deductible? I know car lease is tax deductible but what about a Scooter that is financed instead of leased? I will have to use the actual expense method.
> 
> Thanks for your time.


If you purchase business equipment paid using conventional financing, the tax treatment of the equipment is the same as a cash purchase. You can depreciate and write off a portion of the equipment value each year subject to % of business use. The interest on the loan used to purchase business equipment will also be a deductible expense subject to % business use. The $150 payment is not deductible.


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## SHYY (Nov 13, 2015)

Thanks For the explanation, now it makes sense that it’s treated as cash. Would I depreciate this using the straight line method or MACRS?


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## UberTaxPro (Oct 3, 2014)

SHYY said:


> Thanks For the explanation, now it makes sense that it's treated as cash. Would I depreciate this using the straight line method or MACRS?


I believe it would be 7 years under MACRS. The method you use is a choice. Straight line is slower and not used often. Depending on your circumstances you might be better off using a section 179 deduction for this. With a section 179 deduction you can take all the depreciation in one year if you have enough income. If the income is short you can carry forward the balance to future years.


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