Possible to expense car payments as home based trader?

Discussion in 'Taxes and Accounting' started by turkeyneck, Mar 14, 2022.

  1. qlai

    qlai

    There are three ways, that I know of:
    Buy and depreciate
    Write off mileage based
    Write off lease.
    If you have a corp, there’s good chance some money coming from other sources, so easy to justify imho. In the worst case, start a gum ball machine vending business.
     
    #11     Mar 14, 2022
    murray t turtle likes this.
  2. SunTrader

    SunTrader

    Not sure why you are replying to me with above?

    It's not how to write it off, whether it is even possible to.

    As tiddywinks put it, if it is used to travel to client etc. Otherwise if someone, like me, has their azz planted in front of their desk trading everyday their own money, why would an auto be needed other than for personal use.
     
    #12     Mar 14, 2022
  3. tiddlywinks

    tiddlywinks


    Best practices, according to professional accountants and attorneys versed with trading is to not comingle business types within a trading entity. Trading is specifically addressed (and targeted/singled out) in the tax code.

    You might want to check those gumballs to make sure they are chewable.
     
    #13     Mar 14, 2022
    qlai likes this.
  4. qlai

    qlai

    Is there such thing as a “Trading Entity?” You don’t need to apply for trader status as a corp, afaik. Not arguing, just trying to understand.
     
    #14     Mar 14, 2022
  5. tiddlywinks

    tiddlywinks

    If an entity does not qualify for TTS, the entity does not have access to TTS tax benefits, including MTM. Additionally, all entity types are not equal. For instance, a C-Corp gives up the 60/40 tax benefit of 1256 contracts, whether TTS or not. This shit is not easy to navigate CORRECTLY!! But a willy-nilly setup is still a path.
     
    #15     Mar 14, 2022
  6. #16     Mar 14, 2022
  7. qlai

    qlai

    The only way to get it right is to push boundaries lol
     
    #17     Mar 14, 2022
  8. qlai

    qlai

    How about hosting a server in a data center within a driving distance?

     
    Last edited: Mar 19, 2022
    #18     Mar 19, 2022
  9. newwurldmn

    newwurldmn

    three issues

    Getting an accountant to do your taxes with these games
    Being okay with an audit
    Being okay with the ethical and moral aspects
     
    #19     Mar 19, 2022
    murray t turtle likes this.
  10. bookish

    bookish

    Getting an accountant to not rob you blind.
     
    #20     Mar 19, 2022
    murray t turtle likes this.