What if I buy a cheap truck and just use it for business?
You can either go the depreciation/maintenance route or the mileage route - but not both.
If you are going to put on a lot of miles the mileage route would probably suite you best.
With an older truck, the maintenance route might be best. With this option you deduct insurance, tune-ups, repairs, oil changes etc.
Once you select which option you want it would be difficult to change that status with the IRS so give it some thought.
Trying to keep straight with the IRS is not easy if you happen to get audited. They are very reasonable but dont try to fool them. If for example, you buy a used older Box Truck, say from Budget Rentals, no one will challenge you that it is strictly a business vehicle. On the other hand, if you get a standard P/U that can
also be used as a personal vehicle, could lead to future problems. Probably not, but could.
. Personally, depending on the type of woodworking business, a utility van like a Ford Econoline might be a better good choice.
If you plan to use the truck occasionally for personal business, then you would be safest by claiming mileage and keeping records of business miles and personal miles.
If you are doing this as a part-time business for the sake of getting a tax break, it isnt worth it.