I am in TX.
We just started a small farm. I need a truck to haul cattles. I read a post yesterday about someone buying a truck and taking deduction. I am not sure if I understand all of it. So here are my specific question.
1. If I buy a truck for x amount of dollars, can I take deduction for the farm the next year?
2. What is the rate of depreciation. If depreciation is 1/3, do a take deduction of 2/3 of x amount from the tax of next year + 1?
3. When I buy stuff at Tractor Supply Company, I do not pay TX state sales tax. If I buy from dealership, do I still get the same benefit?
If you tell the dealer to title the truck with "Farm Truck" plates, you do NOT have to pay sales tax at the time of purchase in Texas. If the dealer tries to tell you this is not possible, go somewhere else. Big city dealers simply do not want to deal with this. I know. Go to a rural dealer who knows the law. Most fleet salesmen can also assist you with the tax deduction if you qualify.
Be advised, it must be used for farm related use only. No crusin' for babes on a saturday night, or hauling the race car to the track twice a week.
Trust me, the DPS frowns on this.