How do you write off your vehicle exclusively for your business? Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

I have an LLC but I want to know if I need one for each of my properties that are short-term rentals (STRs)? You don't need one for every short-term rental. If you can do that, it's a great idea to have one for every rental, but you don't have to.

Can you write off a new truck purchase for use exclusively for my business? It depends on the size and type of truck. If it qualifies as equipment, you can write off 100% of it. Don't put your car in your business because you have to use it more than 50% or there's adverse tax consequences. If your company owns your truck and you start  using it personally, it's a taxable event to you. 

I operate my business out of my home and want to rent the home to my entity so I can write off the mortgage rental expense as a business expense and use a primary residence loan to purchase a new home. Can I achieve this by writing a lease to my business? Never rent to your corporation or rent your house out to a business. Instead, have the business reimburse you.

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Resources:

1202 - Qualified Small Business Stock

https://www.taftlaw.com/news-events/law-bulletins/the-abcs-of-i-r-c-section-1202-qualified-small-business-stock

IRS - Cost Segregation Audit

https://www.irs.gov/businesses/cost-segregation-audit-techniques-guide-chapter-1-introduction

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Section 179

https://www.irs.gov/newsroom/irs-issues-guidance-on-section-179-expenses-and-section-168g-depreciation-under-tax-cuts-and-jobs-act

Section 469

https://www.law.cornell.edu/uscode/text/26/469

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby

Mathis

https://www.amazon.com/Infinity-Investing-Rich-Richer-Same/dp/1950863271 

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