Picking up my new bike today.Never owned one in my company name,but don't see why not.My accountant said you can,but he's never had anyone do it.Trying to decide if there is a down side.I do realize I would half to claim some personal miles,but don't want any red flags. Thanks

 

I run a sprint car on a dirt track that eats hundred dollar bills to push it in the trailer through the business.. E D I T !!! Not me.. Thats a quote of a friend....4 real!!!!

 

Depending on what type of business you have, C corp, S corp, Single P or LLC....down sides may be..

Anything purchased that has a title such as a car, truck, boat or bike... when you sell it to an individual, he has to pay sales taxes on the purchase just like you did when you bought it. This doesn't hold true when you trade it in. Corp to Corp pays no taxes when reselling but corp to individual does.

Personal use % of said title vehicle can cause you to get ayearlyincrease in your taxable base.You will owe more on your taxes unless you make preparations for it through the year with FICA, SS and MED tax payments. If not, you will owe taxes on your personal use %. The percentage will be calculated on the bike purchase or payments, maintenance, gas and insurance costs but not upgrades (bling). If you use it 100% for personal use then expect to see what your company spent on it during the year to be added to your year end total pay.. again, you must pay taxes on the personal use.

Insurance rates may increase... If you own a business, that is not at your home, your insurance company expects you to park it at the business overnight unless you have privileges to drive it home and back and for personal use. If your insurance is also paid by your company (corp insurance) then the above is true and they may increase your premiums if they know it's for personal too. Happens everyday with corps that purchase vehicles and let their workers drive them home.


Sorry....Hate to bring these up... but you may want to contact another accountant.. It will also depend on the state in which your company is registered in (if a corp)and the statewhere is presides. There also may be county tax issues as well.

 

Also if your biz happens to fail and you file for bankruptcy, I would think you would loose the bike because it is considered an asset of your company. Had an employee once get ****** up by feds for crossing the state line withh stolen vehicle. He was under a fake name and trying not to l loose the car because he had filed for bankrupcy and the car was owned by the failed business.

 

Hello IRS, Please explain how your HD is used for Bitness (TX speak) and is their an other vehicle available for business use?

Plus registration, insurance cost (business vs. personal) which is cheaper. If in company name(if your state has franchise/asset tax) the HD would be included as an asset for tax purposes.

Basic question is, Your setting across the desk of your friendly IRS agent. How DO YOU FEEL ? Confident or OH Shat I got caught.

I could go on, but talk to your local Tax CPA, Thereare general rules and yes expections to the general rules, Where do you fall in the general rules. Each situation is different.

 

As a long time employee of the IRS I will be looking into this matter[sm=bustedsign.gif]

 

You got to have a legitimate business purpose to claim any deductions(including depreciation) on a business tax return. First thing IRS looks at when auditing a small business is the vehicles. So if you have say a barber shop and buy a car or truck under the business just to drive to work, they will access you the cost and any expensesas personal income and maybe a stiff penalty. Now if you are a framing contractor and haul stuff for the jobs, you can get by with a lot of the expense of a truck.

Motorcycles would be a hard sell. If you sell a bike related item likeMr. Jack Flaps and go around tobike nights and such demonstrating your product, you got a reasonable justification. Another example I can think of is an Attorney who advertises to the bike community.You have to prove the vehicle is necessary in your business and not just used for personal transportation.

 

DPete ol buddy ????[sm=smiley4.gif][sm=smiley4.gif][sm=deal.gif][sm=drooldude.gif][sm=signs003.gif][sm=yikesomg.gif]

 

How about if he used it for delivery, service calls or calling on customers. I saw some drug reps in my docs office today with their supplies that could easily be carried on a mc. Saves gas, lots more fun than a cage, and has to be an attention getter.

 

That would probably fly with no problem. The gas saving angle is very convincing...