[net.taxes] A taxing question

rcj1@ihlpm.UUCP (rj) (03/10/86)

		I am thinking of going into a part time (for now)
		business (home remodeling), business checking
		account, business cards, letter heads etc, the
		whole schmear. I am also in the market for an
		car or truck. Question: If I buy a truck, can
		I use it for tax purposes, i.e. depreciation
		as a business expense? Also, does it matter
		that I'm in business part time? Any other
		particulars will be appreciated.

				Ray
				ihnp4!ihlpm!rcj1

ron@brl-smoke.ARPA (Ron Natalie <ron>) (03/13/86)

> 
> 		I am thinking of going into a part time (for now)
> 		business (home remodeling), business checking
> 		account, business cards, letter heads etc, the
> 		whole schmear. I am also in the market for an
> 		car or truck. Question: If I buy a truck, can
> 		I use it for tax purposes, i.e. depreciation
> 		as a business expense? Also, does it matter
> 		that I'm in business part time? Any other
> 		particulars will be appreciated.
> 
What matters more is whether the truck is going to be used solely for
the business or if you are going to use it for personal use as well.

-Ron

john@hp-pcd.UUCP (john) (03/13/86)

<<<<
< I am thinking of going into a part time (for now)
< business (home remodeling), business checking
< account, business cards, letter heads etc, the
< whole schmear. I am also in the market for an
< car or truck. Question: If I buy a truck, can
< I use it for tax purposes, i.e. depreciation
< as a business expense? Also, does it matter
< that I'm in business part time? Any other
< particulars will be appreciated.
<
If part of the "whole schmear" is income produced by your business then
you are probably ok. All you need is a good accountant and/or a ton of
tax advice books. The IRS does look for part time businesses whose sole
function seems to be to turn normal personal expenses into tax deductable
ones. If you lose money on a business for a certain number of years then
they will decide that you were only doing it as a hobby and I believe they
will reclassify your previous deductions as non-business.

John Eaton
!hplabs!hp-pcd!john