LLC Write Off
I have just finished forming an LLC and Quite Claimed the properties into it. My question is, if it is worth refinancing my truck under the LLC name to the payment deduction on my taxes? I own the vehicle, it is not a lease.
I wouldn't do that if I were you. If you do that, your insurance premium would go up more than you would save by using the deduction from taxes... Have your accountant calculate how much you use your personal vehicle for your real estate business and he'll deduct that much off of your taxes because it was used for business purposes. My accountant asks me how many miles I've driven total and how many of those miles were for RE investing... I tell him (I keep detailed logs) and he does the rest, including depreciation... You don't need it in your LLC's name...
Good Luck!
[addsig]
P.S. I am not an accountant. I am not giving you any professional advice. I am just sharing what I do. My accountant knows the laws very well and he does what he has to do and I do what I have to do...
[addsig]
That is cool. I appreciate the feed back. I am going to have to talk this year with my accountant about it. Have you ever leased a vehicle in the LLC name?
I have never leased a vehicle in an LLC name, but I would imagine the lease would have more expensive terms and your insurance would still be at a business rate... I would just do everything in your personal name and you can still deduct business mileage for your taxes... Until you get to doing this full time - then think about doing everything under the LLC name...
Good Luck!
[addsig]
I understand where you are coming from. My insurance guy feels that the insurance rates are not that much higher considering the big step in limiting personal liability "God forbid" anything bad happens.
You will have to explain how your insurance agent feels you eliminate personal liability. I got the sense from your original post that the vehicle you are discussing is used primarily as your personal vehicle and occasionally for your real estate related activities.