Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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This is fine if you are using the cars for personal and business...but if it is for strictly business it is much easier to use the MACRS method.
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Me and my dad both drive 30k+ miles every year for work for our business. We keep track of what jobs we did that day and then calculate the mileage based on actual driven mileage records we've made...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
Yea, sorry i didnt mean to do that i was just attempting to portray possible scenarios.
Right, if i buy it through the business depreciate it and then just let it sit putting no mileage on it, it...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
You are changing the scenario (I can't hit a moving target).
1) Then you never stopped using the vehicle for business. If it just sat there and never got used it is technically still being used...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
Right, but if you lie and inflate the number that will inflate the tax which will all inflate your cost basis (amount you can eventually write off).
Still fraud though.
From what i saw the IRS...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
Blue book value of the car (kbb.com)
Also, about your statement up top about reporting the price you paid, you have to report the price of the vehicle to your motor vehicles department when you...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
Great, thanks...
So, forgive me if i'm wrong but that just doesn't seem right.
Say this year since bonus depreciation is at 100%, i decide i want to by a brand new section 179 qualifying SUV...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
Same thing would happen after 5 years as before the 5 years. It would be treated as normal income to you. The amount you received over your basis.
If the use dropped to 0% you would have to...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Thanks again, also i never said i was willing to lie about the used vehicle value i was just inquiring about the seemingly too easy way to skew the vehicle price. I suppose that comes off as...
Impact on taxes of buying a new car as business expense?
Expired
Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Thanks, i wasn't condoning fraud, i was just curious if it was a "we take your word on how much you paid for it" thing, or if there was a concrete method which was used to determine the price. But...
Impact on taxes of buying a new car as business expense?
Expired
Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Thanks, i wasn't condoning fraud, i was just curious if it was a "we take your word on how much you paid for it" thing, or if there was a concrete method which was used to determine the price.
I...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
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23 Replies
41,354 Views
See Comments above.
Also for Trucks and Vans the depreciation limits are slightly higher than for passenger vehicles:
For 2011:
Year 1: $3,260 (unless new then it is $11,260)
Year 2: $5,200...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
All this assuming 100% business use of vehicle.
If i decide to purchase a used vehicle weighing > 6000 lbs for say $30,000 which qualifies for this years section 179 adjustment of 25,000....it is...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
The only reason I need to buy a another car is because the last one I bought in 1998 (it was 2 years old at the time) just broke down on me couple weeks ago and the cost of repair is too much to...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
How long do you intend to keep this car? If not for at least 6 years, consider a business lease.
Impact on taxes of buying a new car as business expense?
Expired
Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
There is nothing left to depreciate...if you sell the car you will have some recapture items though (Section 1245). Depreciation is just recovering the cost over a longer period of time...the idea is...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Thanks for correcting me, i read for days and still couldn't come up with that information.
So how does that work with a vehicle over the GVWR of 6000?
You cant depreciate anymore because you...
Impact on taxes of buying a new car as business expense?
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Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
This isn't accurate. It's governed by Section 280F and the bonus for 2011 has no effect on future year depreciations other than your adjusted basis.
Here are the limits:
Year 1: $11,060 ($3,060...
Impact on taxes of buying a new car as business expense?
Expired
Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Sure, i dont believe the deductions are affected at all with financing.
However, keep in mind if you decide to purchase the vehicle through the business, the bonus depreciation and deduction will...
Impact on taxes of buying a new car as business expense?
Expired
Thread created 09-27-2011 by jbloggs
+1 Score
23 Replies
41,354 Views
Thank you all so much. This is great info.
The vehicle I'm intending to purchase is the Honda Pilot EX-L (4365 LBS).
How do these deductions get affected based on financing vs some down...
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