Turbo911

Ok, here's a different question (I think)

Owning a bunch of cars can get pretty expensive. The initial costs, the taxes, and keeping them all titled, plated, and insured can add up to some serious money. Are there any other "legal" tricks to lower your costs? (I really don't mind the government getting it's fair share...but geez).

If you have your own company, can you buy them as company cars with pretax dollars? If they are used for advertising/marketing/giving rides to customers/showing off your products etc. can you legally declare no (0) personal miles on them, etc. I assume you could also write off the expenses of maintaining your business property?? Are there "maximum luxury deduction limits" in place if it used in this manner?

Can you get an auto dealer's license and then not plate and register all the vehicles? ...especially, if they are always up for sale?? maybe save on the insurance, too?

Any other ideas? What does everyone do?

I have heard that some people open a non-profit museum and donate them...but then you lose "ownership" and the ability to use them personally.

I talked to my accounting firm and they were pretty conservative. I thought maybe I could take back some fresh, good ideas to them.

Thanks for all your help

Chuck

RDH

If your company purchases/ leases.......Depending on what % of the vehicle is actually used for conducting business and the balance being personal, can be deductible. Your suppose to document/record all mileage and business purpose to support your cause in case of audit. I am aware of the "marketing/promotional" tactic ( enter your car in a show that displays your company etc..) but havent tried yet....
Talk with your CPA..

mjc123

You can take the section 179 deduction on cars over 6,000 lbs which includes the Cayenne TT

Turbo911

Hi Guys, Thanks for your help.

Yes, I have a "company car" that I declare personal mileage on and I bought my wife a Cayenne. We intend to take advantage of the 6000lbs / 179 deduction. (This is a good deal) I was just hoping there were more things like this that I didn't know about it...or something that could apply to a bunch of cars.

Thanks
Chuck

MBailey

Does the cayenne really weigh 6K. I thought only an Excursion weighed that much.

STEELBLUE007

You can use in a promotion as noted herein above; let it be "rented" for pics (such as a magazine shot/website company (Plus you can meet the hot girls in the shoots); install some killer sound/tech/nav equipment and resell some over ebay-- using the car as a display car for the equipment... Check with your CPA as to how to qualify though.

As for the Section 179-- I got a Decked out Range Rover with BMW 750 IL components in it-- nice to have some room. The Cayenne was great on a test drive, but I would rather just drive my brand new TT! Very similar!

RDH

Ok....I need to do a little better tax planning for next year on these cars myself... My CPA just told me the income to add to our W2's for 03...

Clone

i thought the cayenne weighed 5100 pounds?

Hamann7

section 179 deduction is based on gross vehicle weight rating GVWR, not curb weight. it is the fully loaded weight rating listed on the doorjamb...

Clone

good to know. my father has a dodge 1500 quadcab 4x4 under his company name that has a GVWR rating of 6620, and i asked him aobut the section 179 deduction, and he didnt know anything about it. so he's gonna talk to his accountant tomorrow.

thanks