Business expense?

[BrettLee3232]

Anybody in the construction business buy their both under your company name? If so how did that work out?

I own a home theater company but I do NOT do car/marine audio. I wonder if I could get in trouble if I bought it under my business name and slapped a sticker on her? Haha:cool:

[patrick232]

Yes, but you will then need a commercial insurance policy. We have found it not worth the risk vs reward.

[KG's Supra24]

We have found it not worth the risk vs reward.

This is likely the advise I'd give. You would also want a commercial loan if you weren't paying cash and that is likely to be at a higher rate, like the insurance. There is probably personal use income issues as well.

Could you do it and never have any issues ... sure. If you were audited would it come up ... most likely.

[MLA]

I am not in construction, but did actually buy my last boat through my wife's company. if its your company and your money, you can spend it how you want. The problem comes when you try to claim it on state and fed tax forms. It may very state to state, but we did not need to have a commercial insurance policy since it was not used as a commercial vessel. And before anyone asks if im sure about that, we were both licences agents :wink:

[zabooda]

Pleasure items used for a business expense and tax deductions are a good catchall for the IRS so I would consult with your tax accountant or your business attorney before doing so.

[jmvotto]

KG just gave that pro advice.

[Sinjun]

My father inlaw used to clam his boat on his taxes for his accounting bussiness. To do this you have to entertain clients on it and keep a log of the clients names and how many times you took them out. That is unless you want the irs all over you.

[wolff supra21v]

My accountant would not let me write the hole boat off or a part of a boat. I tried to say I bought it to look at cabins on the river to buy and also show clients them when the were up for sale. I was actually flipping a river cabin at the time I bought my boat.
I talk to two different accountants both said no. (I was hopping to do mileage or hours or something.)

But my brother ran a scrap yard and he bought two boats as scrap iron and wrote both them off as scrap. a 90's something Baja 44' cruiser and cigarette top gun. But the guys he bought them from help with it.

[996scott]

I wondered about this several years ago and talked to my accountant, who just happens to be my dad :) , and he just got this look on his face and said, "not a chance." Not worth the hassle of being audited IMO.

[BrettLee3232]

Ha I came to the conclusion it's not worth it...once your in their radar then your effed!!!! Hopefully they don't read this forum...:cool:

[kaneboats]

But we do read this forum and now you are in our sights. :mad: