Purely Hypethetical question -

If I have a sole proprietor business called "My Big Internet Business", and put a sticker on my car to promote my business, can I deduct all of the car's cost as an advertising expense come tax time? My profits this year are expected to be very low, but i Have to advertise to get the word out.

Renting a billboard would count, why not renting my own car? All associated fees would be necessary to keep the car moving so people would see my ad, right?

 

Very good Question!!

I have heard of some guys in So. Cal who races and owns NSX's and Ferrari's who write there cars off for tax purposes. I have been thinking the same way recently since I now have a website and also need to promote the business.

Any CPA's out there who can chime in and help us poor entrepreneurs.

Thanks in Advance for your Tax help!!!!


***Gosh I hope the IRS doesn't read this board****

 

I am not a CPA

 

You can get lots of free advice from www.irs.gov . I bet you discover that your "business" is a hobby and not a business. In that case, you cannot deduct expenses greater than your income.

I bet you find that your automobile has both business and personal uses and the "business expense" of your S2000 will be proportional to the business use of your S2000.

This link has a good definition of when an activity is a business and when it is a hobby:
http://www.irs.gov/tax_edu/faq/faq12-7.html

 

Yes.. a CPA is your answer... I've looked into this myself, and its VERRRY hard to deduct your car for work, at least with out risking an audit (scary)... Definately consult a CPA.

-- Aaron

 

You should talk to wanabe. He's a CPA. Why not PM him with your question.

 

[QUOTE]Originally posted by himtall
[B]Purely Hypethetical question -

 

So something like this would be deductable only if the proprietor drove the car ONLY for business?



http://www.vehiclewrap.com/images/s2000ani...mated_small.gif

 

You don't have to worry about what the IRS thinks. If you did this to an S2000, the Taste Police would imprison you for the rest of your life before the IRS ever got its hands on you!