BITURBOAMG Report post Posted July 20, 2009 I am sure most of the business owners on this site will know this right away. A friend of mine wanted to buy or lease a lambo and use it for work. He is a doctor and runs and owns a medical practice. His cpa said there is no way to write it off? I thought if the company bought/leased the item in question and it was used for busniess it was able to be written off. Any tax codes or info would be great guys. Thanks Quote Share this post Link to post Share on other sites More sharing options...
Assman Report post Posted July 20, 2009 Won't work. Exotic car will get flagged like fast and besides being denied he'll probably invite an audit. The most 'exotic' company car I've hear of is a porsche 911. Quote Share this post Link to post Share on other sites More sharing options...
BITURBOAMG Report post Posted July 20, 2009 That would work as well. Can he get 1 or 2 company 911 turbos as part of an employment package? Quote Share this post Link to post Share on other sites More sharing options...
BITURBOAMG Report post Posted July 20, 2009 I know the local GM of discount tire has a company s8 as his company car paid for by discount tire and that was 100k or so. Quote Share this post Link to post Share on other sites More sharing options...
Assman Report post Posted July 20, 2009 I know the local GM of discount tire has a company s8 as his company car paid for by discount tire and that was 100k or so. Most sedan's will pass the test. I'm no accountant, but I most mercedes will pass too. I don't know about bentley or aston martin though. I know that Lambo and Ferrari are no no's for sure. Quote Share this post Link to post Share on other sites More sharing options...
Rouleur Report post Posted July 20, 2009 You can write off a portion, albeit a small one from what I have been told. The type of industry really does make a difference. The music guys write off their cars that they use in the videos. Not 100% obviously but certainly a portion. Quote Share this post Link to post Share on other sites More sharing options...
kinnsella Report post Posted July 20, 2009 Welcome to the front of the IRS tax audit line..... You can write anything off....whether it passes the IRS bullshit meter is a whole other matter. Sounds like your friend's CPA trying to save your friend a whole lot of hassle. You do not want an audit especially if you are a business owner. Quote Share this post Link to post Share on other sites More sharing options...
roncfpz Report post Posted July 20, 2009 Tell him to check out Code Sec 280F. He should be able to write off a portion of the lease payments based upon his actual business usage of the vehicle (and not commuting). He will be able to deduct the business use % of the lease payments but must also report some "lease inclusion income" to offset part of the lease deductions. The lease inclusion income is calculated based upon the value of the vehicle. Good luck! It would certainly be a red flag. Quote Share this post Link to post Share on other sites More sharing options...
kennyjr748 Report post Posted July 20, 2009 Welcome to the front of the IRS tax audit line..... You can write anything off....whether it passes the IRS bullshit meter is a whole other matter. Sounds like your friend's CPA trying to save your friend a whole lot of hassle. You do not want an audit especially if you are a business owner. BITURBOAMG, I'm in a similar field to your friend (dentist with my own practice). My CPA wouldn't let me write off my Gallardo, no matter how I tried to justify it. We write off my wife's 911 turbo without any problems. Quote Share this post Link to post Share on other sites More sharing options...
kennyjr748 Report post Posted July 20, 2009 Tell him to check out Code Sec 280F. He should be able to write off a portion of the lease payments based upon his actual business usage of the vehicle (and not commuting). He will be able to deduct the business use % of the lease payments but must also report some "lease inclusion income" to offset part of the lease deductions. The lease inclusion income is calculated based upon the value of the vehicle. Good luck! It would certainly be a red flag. This is what we do with my wife's car. I tried to do this with the Lambo, but my accountant said the Lambo would definitely throw up a red flag... Quote Share this post Link to post Share on other sites More sharing options...
72Pantera Report post Posted July 21, 2009 My accountant has me reimburse myself for milage and doesn't even mess with trying to deduct the car because she knows I don't want any gray areas or red flags. We will revisit that when I put graphics on my car for advertising and I start trying to get exposure (magazines, blogs, etc.) for my car to promote the business. I take milage because I actually drive to see clients and vendors. If you are only driving to work and back you are asking for trouble. Disclaimer: I am not an accountant, only repeating the simplified version of what I have been told. I agree with the statement above that you can deduct whatever you want, but it might not pass in an audit. - Robert Quote Share this post Link to post Share on other sites More sharing options...
BITURBOAMG Report post Posted July 21, 2009 Thanks guys Quote Share this post Link to post Share on other sites More sharing options...
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