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I am a small electrical contractor, my van is owned by me personally, not the company. I do this so I can park itin my parking spot at the condo that I own, which does not allow commercial plates. I spoke to my accountant and he said that he can use the same deductions for my vehicle whether it’s in my name or the company.
I am just wondering what other issues if any can arise from me having the van in my own name instead of the company name.
As I understand it, you can deduct mileage per the IRS guidelines on your personal vehicle for business purposes, excluding commute to home to office. Registering the vehicle to your business would allow you to deduct the cost of the vehicle as a depreciating asset (~$32K new or $18.5K used) over the course of 5 years. If you use the vehicle for personal use, you are to take deductions based on the proportion you use it for business.
Do you have a corporation such as an LLC? If so, then I'd run it through that, while carefully following the IRS' rules on using a business vehicle for personal uses.
Don't overcomplicate this, the accountant is correct. OP can use his personal vehicle for his business and deduct mileage. We have done it for decades, we have also been audited and the IRS agreed that using a personal vehicle is fine.
Do you have a corporation such as an LLC? If so, then I'd run it through that, while carefully following the IRS' rules on using a business vehicle for personal uses.
You said you have a “company.” That doesn’t answer minivandriver’s question.
Her question doesn’t matter. If either of you read my post you would see that I can’t put the truck in the company name because I can’t have commercial plates.
Her question doesn’t matter. If either of you read my post you would see that I can’t put the truck in the company name because I can’t have commercial plates.
My question was very clear.
Actually, it's a legitimate questions as your accountant kinda glossed it over and left out some information unless you just rephrased it wrong. How you take deductions differs based on being a company owned or personal owned vehicle, so, the deductions are not really the same.
As for the registration, depending on the state, you may be able to get standard vehicle plates on company owned vehicles. My employees don't have commercial plates on company vehicles even though they are owned and registered under the company's name.
Actually, it's a legitimate questions as your accountant kinda glossed it over and left out some information unless you just rephrased it wrong. How you take deductions differs based on being a company owned or personal owned vehicle, so, the deductions are not really the same.
As for the registration, depending on the state, you may be able to get standard vehicle plates on company owned vehicles. My employees don't have commercial plates on company vehicles even though they are owned and registered under the company's name.
You are talking about things that do not matter. I can't have the vehicle in my company name, I have to own it personally, that is all there is to it.
My question is if there are other issues, I did not ask people to second guess the facts that I already know.
I find it odd that anytime someone asks a question here, most of the replies are filled with people trying to show everyone how smart they are, instead of actually just answering the question.
Apparently you know more than my accountant, so I will PM you his number so you can impress him with your knowledge. But I did not ask about that here, I am still asking about OTHER issues (such as liability, insurance, etc.)
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