Just a quick note: if you aren't making a profit, you aren't making money. The problem is many people think what you express above - I used to as well.

Here's how it actually works: you buy a block of land or building. You borrow the money. In the first year you make mortgage payments of $20,000. You think you can deduct all of that from your gross business turnover right? Wrong. Lets say $10,000 is interest - that is deductible. But the other $10,000 is reduction of debt - and that comes out of your income = taxable.

Its exactly the same for your business vehicle - loan repayments apart from interest are taxable income. Capital sums.

There is a lot more which can be said on the topic but this isn't the best thread for it. I see Labour are attacking farmers now so we can discuss that elsewhere.