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car used for business across 2 different businesses

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  • car used for business across 2 different businesses

    If I were to have a car used exclusively 100% for business (and having another car already for personal usage), but I would intend to use the business car for 2 separate businesses and I would keep an accurate mileage log, gas expenses, maintenance cost...etc., how does one deduct the business usage of the car in this case? Do you just put it all on one of the businesses or try to spread the expenses between the 2 based on the % car mileage used by each business?

    Does it matter how this is done anyhow (spread between the 2 businesses or take all car expenses 100% on one business), since at the end, the total tax deduction is the same, assuming that I would run both businesses as LLC-solo, there is a profit from both businesses and I would have 2 schedule C to file with my personal taxes anyhow?

  • #2
    Is there a good reason to keep the businesses separate? Lots more work to do so. Anyhoo, I would keep mileage segregated by business just in case you were audited by a ticky agent. Technically, you could be disallowed the deduction for mileage not related to the specific business for which you used it. Probably wouldn't be a problem, but that's just what I'd recommend to a client.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Yes, I plan to have the 2 business separates, one business as solo-LLC for me, the other would be a 2 member LLC (therefore partnership).

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      • #4




        Yes, I plan to have the 2 business separates, one business as solo-LLC for me, the other would be a 2 member LLC (therefore partnership).
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        That changes everything. Yes, you need to segregate your mileage by activity as mileage in the partnership would affect the profits allocated to another person.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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