Q. I have a truck that is my personal vehicle. I am creating a sub Ch. S corporation & am considering transferring my vehicle to the corp. The vehicle would be used for bus. purposes. Also possibly blocking myselft from monetary liability & possibly as a write off/Insurance benefit. I am still making payments on the vehicle. Is this a worthwile move? Any tips to facilitate the transfer?
A. You can easily transfer the title by taking it to the motor vehicle department. Accounting for it you should debit (increase) the asset account "autos & trucks" and credit "shareholder equity" for the contributed asset.
The corporation can take depreciation expense. But beware, the insurance on a company owned vehicle is higher than a personally owned vehicle.
The corporation can take depreciation expense. But beware, the insurance on a company owned vehicle is higher than a personally owned vehicle.
I saw a corsa car(rear damaged and written off).Boot lid and bumper needs replacement.How much would it cost?
Q. Replacements are available.I need to know how much would it cost to repair these(lid and bumper).Rest of the car in excellent condition.
Also what are the implications of buying such cars(accident involved and written off by insurance team)??
Also what are the implications of buying such cars(accident involved and written off by insurance team)??
A. if you go on the cheap like ajunk yard you can get the parts for about $100 if you do the work yourself. that means replacing the broken stuff with junkyard stuff. lid $40, rear bumper $65, tail lights, gas tank about $60 if needed.
if you remove the broken stuff and find something else like rear end damage, crushed trunk, gas tank,etc you can get pricey quickly. if the damage seems minimal get a good look at the trunk space, and overall rear body metal. any folds in the metal need to be pulled more money. other than that make sure the car runs, can pass inspection with rear lights and stuff and fix it.
if you remove the broken stuff and find something else like rear end damage, crushed trunk, gas tank,etc you can get pricey quickly. if the damage seems minimal get a good look at the trunk space, and overall rear body metal. any folds in the metal need to be pulled more money. other than that make sure the car runs, can pass inspection with rear lights and stuff and fix it.
I'm work for a company and use my car, can I write off the insurance on my taxes?
Q. I know you can write off if you are self employed, but what if you work for a company and are required to use your own car and receive a mileage reimbursement?
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A. You cannot take a dollar for dollar deduction for your insurance.
You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.
Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.
In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.
All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.
You can deduct the business use of your vehicle by either using a flat mileage deduction of 55 cents per business mile, or by figuring the actual expenses of the business use. The actual expenses will include a fraction of your insurance depending on the percentage of business use for your vehicle.
Actual expenses also include fuel, parking, tolls, repairs, and depreciation. You must keep detailed records. In practice it is not often that actual expenses are better for the taxpayer than a flat mileage rate. However, if your car is new and your insurance premium is high, it may be better to take actual expenses.
In either case, mileage or actual expenses, you must reduce your deduction by any amount you have received as tax-free reimbursement from your employer.
All this is figured on Form 2106. See also IRS Pub 463 for detailed examples.
If my employer doesn't offer a health plan, can I write off premiums for my independent health insurance?
Q. I've read that I can only write off those that are in excess of 7.5% of my income. The reason I question this is because my previous job offered health insurance which I contributed to and those payments were always made on a pre-tax basis.
So why would it be tax free if I go through an employer, but not if I buy my own plan?
So why would it be tax free if I go through an employer, but not if I buy my own plan?
A. That's the way IRS regulations are. You can write off the premiums on a group policy or if you are self employeed. Otherwise, you are subject to the 7.5% rule.
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