Registering a personal vehicle under my trucking company?

I’ve Leased a few years ago. My wife mainly drove them. A mini van, 2 Jeeps, and 1 Durango. I wrote the payments off. My accountant claimed as long as you can put a Truck tire in it. It’s fine. Never got audited. Can’t really say. Generally Lease pymts can be written off at 100%, as far as I know. Purchased vehicles mileage can be written off when used for Business. I think it’s up to around 70 cpm now. IRS requires a log be kept for the purpose and amount of the miles used. Doesn’t matter who’s name the vehicles names in, yours or the Companies. I haven’t Leased a vehicle in over 10 yrs. It was nice, did it for 12 yrs. We used my wife’s Fathers Chrysler Discount. She always had a new vehicle when my daughter was young. Never bothered keeping track of mileage after that, on vehicles I’ve bought. Didn’t seem worth the hassle. All the rules may have changed by now. You may be able to write off the interest from a loan on a Pick up. I don’t know. Have to ask an accountant, preferably the one who does your taxes. That’s the only way to avoid a future problem with the IRS. Just not worth it, to take a chance. The cost of the tax return filing will save much more in taxes.

 

I was reading about this the other day. Apparently, the environmentalists have forced auto manufacturers to use soy based wiring insulation now and the rodents find it irresistible to eat which makes the issue 100 times worse than it used to be. Now the mice and rats get a free meal while taking up residence under the hood of your vehicles these days.

 

I'm in Canada, so may be apples and oranges, but I live 50 minutes to nearest shopping, service area. My accountant told me to buy my truck personally and keep a log of every trip I use it for "company " business. So if I'm headed in town. Buy filters, that whole trip is business, company pays me .55c a kilometer. Pens for the office, oil, just get a receipt to prove it.

 

That pretty must the same here. My commercial insurance company wanted 2,000 per year for a 97 F350. My personal auto policy is 189.00 a year.

Still track milage and deduct it.

 

I think what the leasing a vehicle as a business tool for a owner operator comes down to is staying off the IRS radar. Pure luck maybe too. Often determined on case by case basis.

Otherwise, why an owner, I know personally, of more than 40 trucks was summoned on that, perhaps among other things too, to the IRS and they invalidated his SUV as a valid business use? He was using it to go to the office, bringing parts, taking his drivers home from the terminal, doing daily business related errands. In any case, it did have quite a legitimate share of business. So, if he could not do it who else could in this business?
Be assured he was using a CPA for his returns too, not Turbo tax. The IRS auditor explained to him that the vehicle for the purpose of his line of business must be used in full dedication to it. So it was a different case from, lets say an uber driver, or cleaning maid who write off miles not the car expenses as far as I know.
On the other hand, we know of corporate cars given for personal use to its employees as perks, can those not be written off either?

 

Any rodents. A good friend has his 2 yr old Prius get totaled after a week's vacation and returning to the damages done by the squrrels

 

Mid 70's the IRS cracked down on 'company' cars. I remember my uncle's company car and personal use wasn't an issue as long as they claimed some each month. Just a couple years later the IRS cracked the whip and all the executives got a daily calendar book to record EVERY personal mile which started to show up on their W2's.

They had a ton of shop trucks, painted company colors and with logos and while they may have made a few 'non business' trips on nights and weekends; they were kept at the shops and wern't usually available for casual personal use.

In practice, smaller companies often 'bend' things, I reember construction companies letting 'special' workers use company pickups for their daily commutes so there are 'perks' around. I've used various company pickups to move furniture and stuff on weekends over the years and would also drive 'em home if I was going to another location in the am when home was on the way and was never questioned.

 

I converted my pickup over to pure business use now that I've bought a car for personal use. I deduct every truck cost as an expense now.

 

In the USA business comes first according to IRS. If I start my day driving 100 miles for business and happen to finish the day with 400 more personal. Its all deductible.

My F350 utility truck is 100% business. Who would drive that for personal anyhow.

My 1500 chevy is actual trips.

Wifes GMC does all the running for are rentals too. Limited, but still some miles every year.

Everyone needs one rental, not for income. Just for deductions.

 

Yes and no.

If your business is rentals or something that takes you to customers or to pick up parts, the irs isn’t going to consider that the truck you have leased under the company name being a personal use vehicle.

however if you are using it as general transportation, like to and from a truck that is parked, then they will flag it and either tell you to provide a log or they will investigate your claim by watching you use it for anything other than for work purposes.

the op can put it in the company’s if there is justification for it which has to be determined by an good accountant who is an EA.