GEN 2 Owner age poll

[Azholley]

My CPA advised me to buy a Gen2 at $20k ADM and invest heavily in illicit drugs and comfort women. He seems to know what he's doing so far...


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Lmao


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[photoneffect]

My CPA said the exact opposite, lol. My wife and I would be throwing away deduction money if we wrote of 70k outright (on top of our mortgage and other business deductions). 10k on the other hand easily helps lower our tax burden and extends through the next 5 years...

Futhermore, any smart financial planner would tell you to finance the whole thing because you can easily make more return on investment than the 1.5% auto rate I'm getting...

So the problem with this is that vehicles are not normal business expenditures. They are subject to depreciation which means how much and in how much time the tax break can be done. Whether you finance or not the same rules apply.

If you want to stretch the Section 179 rule and claim this is a "heavy non-SUV" despite it's <6ft bed then you can take the full deduction year 1 whether it's financed or not. If you don't stretch this rule then you're limited to $25k year 1 and then it would take many, many years to completely take the full depreciation on something $70k.

And more to the point only business use can be claimed. Any personal use prorates these limits.

Most CPA's are not good at their jobs. When my business got more complicated with s-corp elections and foreign entity statuses I realized this very quickly. You have to become your own expert. CPA's tend to know one thing well and then only have a passing familiarity with everything else (I guess kind of like a foot doctor or something). If any of you were planning on writing off your loan amount each year and/or the entire truck expense you're doing it wrong and that's all there is to say about it. Probably happens 90% of the time and only the people who get audited get burned.

I brought all this up because someone was bragging on the Internet and for that I cannot stand.

 

[KTMRC8]

So the problem with this is that vehicles are not normal business expenditures. They are subject to depreciation which means how much and in how much time the tax break can be done. Whether you finance or not the same rules apply.

If you want to stretch the Section 179 rule and claim this is a "heavy non-SUV" despite it's <6ft bed then you can take the full deduction year 1 whether it's financed or not. If you don't stretch this rule then you're limited to $25k year 1 and then it would take many, many years to completely take the full depreciation on something $70k.

And more to the point only business use can be claimed. Any personal use prorates these limits.

Most CPA's are not good at their jobs. When my business got more complicated with s-corp elections and foreign entity statuses I realized this very quickly. You have to become your own expert. CPA's tend to know one thing well and then only have a passing familiarity with everything else (I guess kind of like a foot doctor or something). If any of you were planning on writing off your loan amount each year and/or the entire truck expense you're doing it wrong and that's all there is to say about it. Probably happens 90% of the time and only the people who get audited get burned.

I brought all this up because someone was bragging on the Internet and for that I cannot stand.

I don't know if he was bragging, but I understand what you are saying. Regardless of the tax implications you mentioned, I think most financial planners would recommend financing it all and investing the money you would have put into it. As I stated before, it's relatively easy to earn a better interest rate than the one you finance at.

 

[Aaron]

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[KTMRC8]

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I've got to get to 40 man to earn my girl scout badge for internet trolling!

 

[Aaron]

I've got to get to 40 man to earn my girl scout badge for internet trolling!

You can do it man! Don't let your dreams be dreams!


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[photoneffect]

I don't know if he was bragging, but I understand what you are saying. Regardless of the tax implications you mentioned, I think most financial planners would recommend financing it all and investing the money you would have put into it. As I stated before, it's relatively easy to earn a better interest rate than the one you finance at.

Yes and you may want the money just for cashflow purposes. But taking vehicle financing as a tax shelter makes no sense. That's what I was trying to get at with the other guy. I really wasn't trying to troll which is why I asked him what he meant. He clearly started making stuff up confirming my suspicion that he's trying to sound like a big shot.

 

[Azholley]

Yes and you may want the money just for cashflow purposes. But taking vehicle financing as a tax shelter makes no sense. That's what I was trying to get at with the other guy. I really wasn't trying to troll which is why I asked him what he meant. He clearly started making stuff up confirming my suspicion that he's trying to sound like a big shot.

I answered a question on how I do things and that makes me a big shot?? Makes sense.


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[df4801]

My CPA said the exact opposite, lol. My wife and I would be throwing away deduction money if we wrote of 70k outright (on top of our mortgage and other business deductions). 10k on the other hand easily helps lower our tax burden and extends through the next 5 years...

Futhermore, any smart financial planner would tell you to finance the whole thing because you can easily make more return on investment than the 1.5% auto rate I'm getting...

The Raptor already saved you money!!!

Because without the Raptor, you wouldnt be on this forum. And without this forum, you wouldnt know that you need to find a new CPA!.

 

[bstoner59]

You guys are all doing it wrong. TRAC lease

#yourewelcome


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