How do I write off my build on my business taxes?

[cspecken]

Hello All, I would like to know if anyone has used their build as a tax write off for their business? I am sure this can be done, but I am wondering if you call it "Advertising" or use some other type of expense. I am currently having an outside shop do some of the bigger things on the car, and I have a nice list of parts I will need to purchase to complete the build as well. Any ideas would be greatly appreciated. One thing that may help my situation is that one of my businesses is in the motorsports arena.


Thanks in Advance, Chris

[Firebirdsteve]

I have done this. I moved the car into the company and then did the build on pre tax dollars. Here in Canada...thats a 50% + savings. :yes:

[Stuart Adams]

Be careful. My father was a revenue officer for the IRS. You probably can do some and definitely some of the expenses of using it for business, but you may open a can of worms. The IRS may see this as a way to check out your other business things that were not directly related to the car build and it could snowball into a hassle you don't want.

Build it and write off your expenses, when used for business purposes, would be my advice. The actual build, unless at test vehicle or something would be a little risky IMO.

Seek good professional advice.

Just because you do it doesn't make it legal.

[Ron in SoCal]

^ good advice from Stuart. Further, first step is to not ask on a public car forum. Just sayin'...

[Vegas69]

I'd put this right up there with a guy that claimed his parakeet as a dependent. :lol: You can write off anything, it's whether you get caught.

[DOOM]

Be careful. My father was a revenue officer for the IRS. You probably can do some and definitely some of the expenses of using it for business, but you may open a can of worms. The IRS may see this as a way to check out your other business things that were not directly related to the car build and it could snowball into a hassle you don't want.

Build it and write off your expenses, when used for business purposes, would be my advice. The actual build, unless at test vehicle or something would be a little risky IMO.

Seek good professional advice.

Just because you do it doesn't make it legal.

X2:yes:

[cspecken]

Thanks for the thoughts on this. I was just asking a question, didn't say I was actually going to do this. Thought I would just poll the audience and get their feedback and gain some insight if anyone has been successful in doing this. Taxes are always a grey area for me, I have a call out to my accountant as well.

[Ummgawa]

Three words:

Don't do it.

[Rybar]

Some suggestions that may work.

1) Using your car to advertise or promote your business. Ex. Vinyl wrapping it with your company logo/name etc.
2) Getting your labour and parts invoiced or billed to an actual company vehicle you have or use.
3) If you are in an automotive related business then there is a possability it could be done legally.

I'm not sure of IRS rules as I am in Canada, but I'm sure similar rules apply. I would run it by the accountant but pretty sure they would suggest not to do it.

[badmatt]

as long a you register it under the company... and have a tiny sticker of your company on it..

its considered a write off here. to a degree.

[Ummgawa]

Think back seven years ago about decisions you made that had any negative or positive effect on your income. Think about strangers with badges asking you minute (as in small/detailed) questions so specific you might consider lying about them because they are so ridiculous. Now consider hundreds of the same questions about every dime you've spent in the operation of your companies business and the moment you realize you'd better not get pissed off of act annoyed or the hounds of Hell will descend upon you in the form of forensic accountants dissecting your every move. All of a sudden you realize you are screwed.

Now think about your decisions now and look seven years into the future.

And that's how the IRS thinks.