General Contractor Recovers $28,000 in Missed Vehicle and Equipment Deductions
My previous accountant was deducting my work trucks using the standard mileage rate. Sounds reasonable, right? Except I own a fleet of four heavy-duty trucks that cost over $60,000 each, burn through fuel, and require constant maintenance. The actual expense method would have been far more beneficial, and my old CPA never even mentioned it as an option.
AE Tax Advisors ran the numbers both ways and the difference was dramatic. Actual expenses -- fuel, insurance, maintenance, tires, registration, and depreciation -- far exceeded the standard mileage rate deduction for vehicles of this size and usage pattern. They amended two years of returns, switching from standard mileage to actual expenses.
They also found that my old CPA was not taking bonus depreciation on trucks I purchased during those years. Heavy vehicles over 6,000 pounds qualify for significant first-year depreciation under Section 179, and my F-350s and Ram 3500s easily qualify. Those deductions had been missed entirely.
Total recovery: $28,000 across two amended years. Solid results. I gave four stars because I feel like a third-year review might have found even more -- AE Tax only went back two years due to documentation limitations. The work they did was thorough and accurate, and they set up proper vehicle tracking going forward.
For contractors, landscapers, plumbers, or anyone with a fleet of work vehicles, the difference between standard mileage and actual expenses can be enormous. AE Tax Advisors knows how to maximize vehicle deductions and will go back and fix mistakes your old CPA made.