RV as a tax write off

GaryChatelain · #1 10-10-2009, 06:36 PM

I know it's a risky situation, but has anyone had success writing off their RV on their income taxes? I would love to know how this can be done. Thanks in advance.

LifeofReiley · #2 10-10-2009, 06:51 PM

on a suicide mission??? You will have every taxing authority after you just after your registration... state etc... Move on... even business use is too risky. All I can say is document, document, document if you try and go this route.

Geico266 · #3 10-10-2009, 06:55 PM

A lot of it depends on what businesses you are in.

TSwezey · #4 10-10-2009, 07:04 PM

Quote:

Originally Posted by Geico266

A lot of it depends on what businesses you are in.

And there is the answer.

LifeofReiley · #5 10-10-2009, 07:28 PM

Be very careful... Do your research and get help putting your plan together! It will be your job to provide absolute proof.

zemon · #6 10-10-2009, 07:41 PM

Talk to your accountant (of course) but I can tell you that I occasionally use my plane for business. I own it personally and I file an expense report with my business (which I also own) for the cost of operating the plane. In round numbers, I charge the business $100 per hour for the plane. It's legit and I don't expect I would ever have any problems if audited.

Do note that I don't try to take the whole plane as a tax exemption. The majority of use is personal so this works well for me.

-- Art Z.

CNEJR · #7 10-10-2009, 07:55 PM

the answer is the same. I can think of several ways an RV & associated expenses could be written off.

1. If you use your RV as a "Test Bed" for products you develop & sell it becomes as any other business asset. Can't be a sham, but several out there are doing this or should be. ie. Eggenfeller, Van's, Avery tools, even little manufacturers. The airplane becomes a necessary development tool to the business. I could even easily make a case for Doug Reeves to deduct his RV. It is necessary to their business.

2. Promotion of an item or entity. If Red Bull bought an RV, painted it up in "Red Bull" paint schemes and logos and operated it at public events for promotion, don't you think they would deduct the airplane & related cost? Now note they would have to own the airplane, because you can't use experimentals for commercial hire, but in this case no fee is changing hands for promotion, goodwill or advertising. They are simply using their business asset to promote their product.

3. Business travel in your owned business. Document well, but don't be afraid. Keep current records. Each year allocate related expense in portion to business time/ total time.

Giving time to thought, I could probably think of more examples which would be legitimate. Main thing is to follow the law, no shams, but it is lawfully done. Consult a good tax CPA or tax lawyer, one that is not afraid of the large shadow of the IRS. If you get audited, oh well, it's not the end of the world, argue your case win or lose and go on.

My advice is worth what you paid for it. I didn't stay at a "Holiday Inn" last night, but I am a retired CPA.

LifeofReiley · #8 10-10-2009, 08:43 PM

You can have a CPA, TAX attorney to boot and win in a suit in Federal court and STILL be force to pay or spend MORE money to fight. Yes, IF you have a true well documented fire safe business and files... Go for it. As stated win or loose and move on.

CNEJR · #9 10-10-2009, 09:07 PM

Quote:

Originally Posted by LifeofReiley

You can have a CPA, TAX attorney to boot and win in a suit in Federal court and STILL be force to pay or spend MORE money to fight. Yes, IF you have a true well documented fire safe business and files... Go for it. As stated win or loose and move on.

This is true, but just remember whatever you spend in your defense is "Tax Deductible". It always amazes me that some tax payers restate the tax law to a more generous standard to the government's advantage just to avoid possible confrontation. It follows the logic of "1. How much did you make?, 2. Send this amount as tax due."

Just follow the law, act in good faith. If a person is that concerned, he can go to the IRS, explain the situation and get a written opinion concerning the matter before a deduction is ever taken.

LifeofReiley · #10 10-10-2009, 09:15 PM

at one time I really thought the same until my good friend, a FED agent long past dealing with tax cases (now into money laundering cases) spelled it out for me. Have fun out there and protect your assssets!

And yes I have a CPA and TAX attorney.