Partner wants to buy a Super Car worth 150k

[EntrepreneurMD]

Humerus,

I did not personally title my exotic under the corporation. When you consider a tax deduction, make sure you are prepared to defend it in an audit.

The reason your accountant and/or preferably personal and/or tax attorney is involved is that the answer is..."it depends".

Some considerations: 1- I did not title my exotic under the corporation because I do not use it for business use. I have titled my daily driver under the corporation because I do use it regularly and primarily for drives from work to hospitals, nursing homes, CE lectures, etc. We use a third vehicle with larger more comfortable seats to visit family, for vacations, house of worship, restaurants, etc. so it is easy to explain the primary business use of the vehicle.

2- I retitled my daily driver under personal when my oldest child was old enough to drive in case they were to drive the vehicle. I've seen physicians get their business into trouble when their adult child gets into an accident, one placing the opposing driver into a nursing home requiring lifelong care.

3- Related to #1 or 2, titling a vehicle under a corporation is a calculated risk.

I have so many large tax deductions and deferments at this point, especially since acquiring the commercial real estate, the benefits of a vehicle deduction are miniscule and I decided to take the risk fully off the table at this time.

[dennis]

One of my retired classmates (former Dentist) has a 70 yr old firetruck. Does that count?

[fatlittlepig]

I Find This Humerus wrote:

fatlittlepig wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand…

And the majority of your’s are not helpful to the conversation so who do you think is better for the forum?

Click to expand…

I believe I answered your question with reasonable advice, no? Maybe you missed my preface about not trying to sound rude or snarky but if you really have questions about deductions, etc. then it is worth your time to get a good accountant.

Click to expand…

Yes, I realize I can simply ask my local tax man, which I will.

Though, the point of this forum is to hear different points of view and options from various business owners, CPA’s, tax coaches and other professionals. I can’t get all of those nuggets of info from merely asking my local tax man. Internet forums were invented for people to discuss topics…

Click to expand…

U seem to like sketchy advice and sketchy financial strategies, so this forum may not be the best place for such.

Click to expand…

I seem to be the one receiving “sketchy” advice. Not the one giving it…

 

Nonetheless, this thread has been derailed mostly by your comments and jealousy of others’ successes. I won’t be surprised if mods lock it down.

Click to expand...

skepticism doesn't equate to jealously my humerus friend.

[I Find This Humerus]

fatlittlepig wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand…

And the majority of your’s are not helpful to the conversation so who do you think is better for the forum?

Click to expand…

I believe I answered your question with reasonable advice, no? Maybe you missed my preface about not trying to sound rude or snarky but if you really have questions about deductions, etc. then it is worth your time to get a good accountant.

Click to expand…

Yes, I realize I can simply ask my local tax man, which I will.

Though, the point of this forum is to hear different points of view and options from various business owners, CPA’s, tax coaches and other professionals. I can’t get all of those nuggets of info from merely asking my local tax man. Internet forums were invented for people to discuss topics…

Click to expand…

U seem to like sketchy advice and sketchy financial strategies, so this forum may not be the best place for such.

Click to expand...

I seem to be the one receiving "sketchy" advice. Not the one giving it...

 

Nonetheless, this thread has been derailed mostly by your comments and jealousy of others' successes. I won't be surprised if mods lock it down.

[fatlittlepig]

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand…

And the majority of your’s are not helpful to the conversation so who do you think is better for the forum?

Click to expand…

I believe I answered your question with reasonable advice, no? Maybe you missed my preface about not trying to sound rude or snarky but if you really have questions about deductions, etc. then it is worth your time to get a good accountant.

Click to expand…

Yes, I realize I can simply ask my local tax man, which I will.

Though, the point of this forum is to hear different points of view and options from various business owners, CPA’s, tax coaches and other professionals. I can’t get all of those nuggets of info from merely asking my local tax man. Internet forums were invented for people to discuss topics…

Click to expand...

U seem to like sketchy advice and sketchy financial strategies, so this forum may not be the best place for such.

[I Find This Humerus]

CordMcNally wrote:

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand…

And the majority of your’s are not helpful to the conversation so who do you think is better for the forum?

Click to expand…

I believe I answered your question with reasonable advice, no? Maybe you missed my preface about not trying to sound rude or snarky but if you really have questions about deductions, etc. then it is worth your time to get a good accountant.

Click to expand...

Yes, I realize I can simply ask my local tax man, which I will.

Though, the point of this forum is to hear different points of view and options from various business owners, CPA’s, tax coaches and other professionals. I can’t get all of those nuggets of info from merely asking my local tax man. Internet forums were invented for people to discuss topics...

[jacoavlu]

Practices, group and solo, do purchase cars and take business deductions. Your partner should talk to the practice accountant.

[CordMcNally]

I Find This Humerus wrote:

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand…

And the majority of your’s are not helpful to the conversation so who do you think is better for the forum?

Click to expand...

I believe I answered your question with reasonable advice, no? Maybe you missed my preface about not trying to sound rude or snarky but if you really have questions about deductions, etc. then it is worth your time to get a good accountant.

[Doc Spouse]

Dont_know_mind wrote:

Reality is a lot weirder than a Bogle 3 fund portfolio.
I got to 12M NW age 45 with 1-2M debt and a heavily concentrated portfolio of negative cashflow, land investments.

Personally, I would rather spend 500k losing and learning about bad investments than on a supercar.
There was an interesting fellow here called crazyroadtodublin who had a margined stock portfolio and NW in ?20-30M range.

The risks that some people take are interesting. Some would find my portfolio quite horrific, but I’m comfortable with it.

I drive a 30k Japanese car.
Leverage, risk, gambling. I think about these a lot.
The only other person I know with my investing strategy is a guy in his 50’s who has accumulated acreages and attempts to market time them. He has a car collection, one of them is a pink ice cream van.

Click to expand...

And then there's this guy from yesterday - https://www.reddit.com/r/wallstreetbets/comments/cl4sku/at_the_end_of_the_day_money_is_just_paper/

 

Edit: Take personal disagreements to the PM's folks.  With any luck, they'll get lost before they reach the intended destination. *Pokes WCI's webmaster* :P  This thread has been interesting and I'd hate to see it locked.

 

[I Find This Humerus]

CordMcNally wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I’m not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I’ll preface this next recommendation with the typical “I’m not an accountant but…”. You can write off anything you want, but that doesn’t mean it’s a good idea or that the IRS won’t notice. I don’t think purchasing a “super car” under the practice LLC is the smart move here.

Click to expand...

And the majority of your's are not helpful to the conversation so who do you think is better for the forum?

[I Find This Humerus]

Infinity wrote:

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand…

I would not do it because of liability issue.  If you get into an accident, your practice will also be liable.

Click to expand...

What if he is under a separate s corp?

[fatlittlepig]

I Find This Humerus wrote:

fatlittlepig wrote:

jacoavlu wrote:

I hate to bump this thread after it’s died down but it seem appropriate to add here that based on some comments I reached out to EntrepreneurMD with an offer to / in hopes of verifying his identity and he provided photos (cars, houses, screencaps from accounts) that support the general veracity of his claims. I asked for and he provided a photo of the Ferrari with a current newspaper laying on the hood. I believe that he’s a real doc with a crazy giant house and a Ferrari and money in the bank and at least two mutual fund holdings with 10yr annualized returns exceeding 30%.

Click to expand…

Thanks for the verification. FLP stands by his comments regarding the wisdom (or lack thereof) of his personal finance habits.

Click to expand…

I think we are all waiting for the apology….

Click to expand...

keep waitin' Oink Oink

[Lordosis]

Just fly to work. Unless you know that teleportation trick.

[CordMcNally]

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand...

I'm not trying to sound rude or snarky but about half of your topics are wanting to write various stuff off. I think if you have that many questions then you need a good accountant you can trust. I'll preface this next recommendation with the typical "I'm not an accountant but...". You can write off anything you want, but that doesn't mean it's a good idea or that the IRS won't notice. I don't think purchasing a "super car" under the practice LLC is the smart move here.

[Infinity]

I Find This Humerus wrote:

So my partner posed this question to me:

 

Is it possible to purchase the car under the practice LLC to tax deduct the ownership costs (maintenance, interest if he finances, etc). We do routinely drive to the hospital, visit other practices to advertise, give talks, etc. so it would function as a “company car.”

 

If this is feasible this might be the smart play here?

 

 

Click to expand...

I would not do it because of liability issue.  If you get into an accident, your practice will also be liable.