Using an LLC to write off the cost of a truck? (vehicle, 2010)

[SpeedyAZ]

I need some advice from this knowledgeable forum about using an LLC to write off a portion of the cost of the new truck I'm purchasing. Here's my dilemma:

I think this weekend I'm going to pull the trigger and trade my '07 Yukon in on a new 2010 F-150. I always remember whenever my dad bought a truck for his farm, he could always write off a portion of the purchase price on his taxes. I got to thinking...I'm a shareholder in his LLC along with my siblings, wouldn't I be able to do the same?

My dad has 1 1/4 Sections of Farmland (800 acres) in Iowa and it's all in an LLC he set up when he started farming. There are 5 people who having voting shares in his LLC and is broken down:

Jim (dad) - 60 Voting Shares
Me- 10 Voting Shares
Sibling #1- 10 Voting Shares
Sibling #2- 10 Voting Shares
Sibling #3- 10 Voting Shares

Obviously my dad controls 60% of his LLC with my siblings and I controlling 40%, shares cannot be sold without majority approval of the LLC (aka my father). Because I'm not the sole owner of the LLC, would I be able to purchase my truck under the name of the LLC and write off a percentage of the purchase price?

I'm sort of curious now as this could save me a good chunk of change. I know dad always did this and has all his trucks titled under the LLC, would I be able to do the same?

I should note, I get a percentage of the profits from the LLC annually as do my siblings. Don't know if that would make a difference.

[Grandpa Pipes]

IMO this question is best answered by an accountant or a lawyer.

[wanneroo]

Originally Posted by Tightwad

IMO this question is best answered by an accountant or a lawyer.

Yep I would agree.

The only thing I would say is the truck would have to be shown to be used for business purposes. Just because you own an LLC doesn't mean you can write off everything under the sun.

My vehicle I use for business and personal use. I keep track of all my mileage and the purpose thereof with the ability to demonstrate my business miles are in fact that. I deduct the business side off my taxes on my schd C.

I imagine if you buy a truck for business purposes under your LLC to write off the costs, but then never use it for any demonstrable business purpose, the IRS will probably come back and bite you on the butt.

[jazzlover]

Originally Posted by wanneroo

Yep I would agree.

The only thing I would say is the truck would have to be shown to be used for business purposes. Just because you own an LLC doesn't mean you can write off everything under the sun.

My vehicle I use for business and personal use. I keep track of all my mileage and the purpose thereof with the ability to demonstrate my business miles are in fact that. I deduct the business side off my taxes on my schd C.

I imagine if you buy a truck for business purposes under your LLC to write off the costs, but then never use it for any demonstrable business purpose, the IRS will probably come back and bite you on the butt.

Actually, it's even worse than that. If you have a "company" vehicle (as in the LLC) that you use partially for personal purposes and the company pays the expenses for that usage, the IRS will look at those personal miles as taxable income to you.

[Gimme3steps]

LOL-reminds me of this

YouTube - Seinfeld - write off