A trailer belongs on Line 13, depreciation and section 179 expense deduction.
Why line 13
A trailer is equipment you will use for years, so its business-use cost is capitalised and recovered on line 13 through Form 4562, often in full under a section 179 election. A trailer is not a passenger vehicle, so the luxury auto depreciation caps that limit a car or small truck do not apply to it, though the business use percentage still does. Registration, tyres and repairs on the trailer are current expenses on their own lines, not additions to its cost.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a trailer lands on Line 13 without you sorting it.
Start for freeWhat a trailer is confused with
- Line 9, car and truck expenses
- The tow vehicle may be on line 9 under the standard mileage rate, but the trailer is a separate asset and the mileage rate does not cover it.
- Line 20a, rent or lease of vehicles, machinery and equipment
- A trailer hired by the day or week is equipment rent on line 20a.
- Line 21, repairs and maintenance
- New tyres, brake work and deck repairs keep the trailer working, so they are repairs on line 21.
Examples that belong on line 13
- An 8,500 dollar enclosed trailer for hauling tools to job sites
- A 3,200 dollar utility trailer for a landscaping business
- A 14,000 dollar equipment trailer with ramps for a machine operator
- A 5,000 dollar concession trailer shell before fit-out
- A used trailer bought for 2,400 dollars and placed in service in April
What does not belong here
- Trailer registration and plates, which are taxes and licences on line 23
- Rented trailers, which are line 20a
- Tyres and repairs, which are line 21
- Personal use trips, which reduce the deductible share
The limit that applies
Trailers are not passenger automobiles, so the annual luxury auto depreciation limits do not apply, but a section 179 election still depends on business use staying above half.
What to keep
Keep the bill of sale, the title or registration, and the date placed in service. If the trailer is also used personally, keep a use log to support the business percentage.
Other expenses on line 13
| Expense | Line |
|---|---|
| a business sign | Schedule C, Line 13 |
| a camera and lenses | Schedule C, Line 13 |
| a desk and office chair | Schedule C, Line 13 |
| a laptop or computer | Schedule C, Line 13 |
| a laptop used 70 percent for work | Schedule C, Line 13 |
| a phone handset | Schedule C, Line 13 |
| capital expenditures | Schedule C, Line 13 |
| commercial kitchen equipment | Schedule C, Line 13 |
| software bought outright | Schedule C, Line 13 |
| tools over a few hundred dollars | Schedule C, Line 13 |
Related lookups
- Where does business mileage go on Schedule C?
- Where do car lease payments go on Schedule C?
- Where does a laptop repair go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a trailer lands on Line 13 without you sorting it.
Start for free