tax writeoff?

[Krzdimond]

I am trying to run a business and I have a question. I put magnetic signs on my car.... advertising. Essentially it's a rolling billboard. Question is, how do I write off the details I do on my own vehicle? I'm sure I can't charge myself the retail rate (doing business as DBA)

[IMADreamer]

you are probably going to have to creatively work it into the advertising portion of your expenses somehow, or just business expenses.

[BrandonL]

I do taxes on the side during tax season and I would put that down as vehicle maintenance

[Krzdimond]

but can I writeoff the retail cost? Or just product?

[BrandonL]

I would take the product for maintenance and then there should be a place to put "professional fees paid" or something to that effect and I'd take your fee there.

[Baron_Von_Awesome]

but can I writeoff the retail cost? Or just product?

 

Retail cost

[jjwvette]

[SweetDaddyDelicious]

Depends how creative you get. I know guys that sell race parts, and they write off their car, their upgrades, their racing, etc. Its all advertising, working, and doing business.

 

You can always write off advertising, and maint. If your business is detailing your vehicle is an advertisement of your services and should reflect it.

[xlr8rvette]

I do taxes on the side during tax season and I would put that down as vehicle maintenance

 

:iagree:However, don't forget you can only write off the portion of vehicle expenses based upon the percentage of auto use for business and must keep mileage records to substantiate this (commute, personal and business use). You may want to compare taking a mileage credit verses expense percentage. There is also a possibility of depreciation, interest % deduction and if you lease you may deduct a % the payment. You do not , however, get multiple choice. The method you use during the first year for the auto will be used for as long as you claim that auto.

 

Suggest contact IRS or tax preparer to discuss what is best for your situation.

 

Regards, Bill

[xlr8rvette]

1

Edited May 10, 2009 by xlr8rvette

[xlr8rvette]

I would take the product for maintenance and then there should be a place to put "professional fees paid" or something to that effect and I'd take your fee there.

 

 

Caution.......don't get too cute. You do not want to list something that may raise a question

[Krzdimond]

thanks for the info guys. I will be using a CPA at the end of the year, just didn't know if I should log it now or not. I guess I;ll write it up as advertising costs and see what happens. It seems that I can;t write off the product, because I already did when I bought it, and labor is covered under payroll.

[Superdutytd]

You can for sure write off detailing your car. You can write off cleaning of business vehicles.

[Krzdimond]

You can for sure write off detailing your car. You can write off cleaning of business vehicles.

 

True, but not if it IS your business. I write off the products when I order them as a "business expense" and I pay myself (sole proprietor), so the labor is a write off too. If I write off the detailing of my car, I will, in essence, be "double deducting" for the products used and the labor involved for that detail. Now, if I get someone ELSE to clean it, and they use THEIR products and labor....... I can write it off either as advertising costs, or maintenance. Because I use the mileage deduction, advertising is the better option.

 

I got this info from a CPA that I detailed yesterday afternoon. Seems that I need to find a shell corporation:willy:

 

I was going to ask if he'll work with me, but he's just too dayum honest..... not something I'm looking for in tax preparer