Do you write off the price of the S2000 as a business expense, due to the R&D, product promotion, etc.?

Just curious.

 

In my humble opinion, it is problematic to extensively modify a car if it is leased. Most business would lease. Businesses that purchase may have audit difficulties. It depends on the size of the business and if it is considered a real business or a hobby.

 

Thanks Sideways,

Judging from the lack of replies, I guess everyone wants to keep this hush-hush, though I don't know why.

 

We write off only that share of the expenses that can be attributed to business needs. That way we're not vulnerable if we get audited. But we also have an LLC through which all the business expenses pass, so we keep this religiously separate from personal expenses.

 

Thanks for the response Rick. Very interesting.

 

[QUOTE]Originally posted by Rick Hesel
[B]We write off only that share of the expenses that can be attributed to business needs.

 

If the car is owned by a business then you can write it off. If you own it personally then you can only write off the expenses. You can however sponsor your own car but that's tricky and you would need to prove (by way of receipts and other documentation) that the car is used for promotion and that the sponsorship $$$ are going somewhere other than your pocket. You also have to pay personal income tax on the sponsorship money earned so it way simply be more trouble than it's worth. If you keep a log of how many miles and for what business purpose then you can safely write off your milage.

If the car is owned by a business it has to be used for business purposes, again you must keep records or the IRS may not let you get away with it. Since I have an S2KI decal on my car I can write off all the extrainious expenses like track fees, entrance fees yadda yadda since I take my car to these type of events for purely promotional reasons

 

Hey! not fair! I have 2 s2ki decals and take my car to the local A&W car shows! Can I write off my hamburger?

 

Your best bet is to hire a very sharp accountant.
They'll tell you what will work best for you in your situation!

 

So, who is an accountant around here - a sharp one at that?