How to write-off a viper?

[pj]

Start a Bikini Team.

 

[randall]

just because you get it past the part time/seasonal IRS employee does not mean that it is legal,i think they have 5 years to nail your A$$.you may want to ask a tax lawyer,i doubt that a personal use viper would pass an audit.

 

[bad viper]

Might through some of my company logos on the New Comp Coupe and race sponsor it to some extent that should be legit...........?

 

[BobK898]

The IRS ultimately limits how much can be deducted. Talk to your accountant. You may think you are writing off the whole amount but the number is corrected later in the tax form. They put limits on it to counter people deducting high end cars via business use.

 

[00prowler]

One really good way is to take a home eq loan on it! It will drastically reduces payment, and is 100% tax deductible. Just make sure you put enough money down on it,so you wont be upside down in loan at pay off time! Used vipers hold there value well. If your self employed, you can find no income verification loans as well. GOOD LUCK...AL... 00PROWLER

 

[randall]

only if you have to make payments.

 

[Bernard]

I lease mine and expense the lease monthly. I would be suprised if this causes any problems, as long as the company was not formed, to pay for the Viper.

 

[Viablo]

Here's a way to avoid all the tax limitations and reduce paper work.

Keep your car as a personal item, do not sell it to the co.
In 2002 the IRS mileage allowance is 36.5 cents a mile.
That means that your company will reimburse you 36.5 cents a mile for business mileage no matter what car you use. At the end of each month you hand in your expense report to the company detailing mileage, business tolls and parking .
So if you run around a lot this could be the way to go. Simple right? the key here is to keep a daily log.

Not so simple:
You can also lease it and at the end of each month give your company the bill for the lease, tolls, gas, repairs, insurance, etc. (but not mileage). with this method at the end of the year
you need to figure out what your personal percentage use is, i.e.personal mileage/total mileage. This percentage gets multiplied by all your auto expenses (except tolls and parking which should only be for business) and added to your income via W-2, K-1, 1099, etc., depending on the entity. There are also limitations.
BTW the irs seems to like personal percentage in the 30% area.

Then if you buy the car you need to start booking depreciation, and more paper work.

You need to figure out if the added savings of leasing or buying, if any are worth the headache of all the additional paper work.

In any case your accountant should be able to steer you in the right direction.

 

[bad viper]

I once had a Ferrari Daytona Spyder that I listed as a company car.
I was audited and they dis-allowed that in the first hour
of auditing.