wrf@ernie.BERKELEY.EDU (W. Randolph Franklin) (11/08/85)
As I understand it, if you buy a car in December 1985, and use it 100% for business for that month, then you get the 17% deduction and a tax credit. That you may use it for personal things like commuting in 1986 is irrelevant - you just can't take the 86 deduction. I also understand that the IRS ignores the letter of the law, if, in their opinion, the taxpayer is taking too great an advantage of some rule. (Although Justice what's-his-name said that no one is obliged to pay more tax than necessary, the IRS has said that business arrangements constructed solely for tax purposes w/o any other reason aren't valid.) What experience have people had with buying business property towards the end of a year, taking the maximum deduction, and then converting it to personal property? Please send replies to me, and I will post a summary w/o the names to the net. Wm. Randolph Franklin, UC Berkeley, Arpanet: wrf@ernie.Berkeley.EDU USPS: Computer Science Div., 543 Evans, University of California, Berkeley CA, 94720, USA 415-642-9955