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Posted: 4/20/2017 5:58:26 PM EDT
[#1]
IMO he should be willing and able to explain it to you so you don't have to ask ARFCOM. My guess is it has to do with your CPA's reading of § 274(a) of the code and/or the IRS's interpretation of that section.
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Posted: 4/20/2017 7:31:51 PM EDT
[#2]
When I read one of Kiyosaki's books, he wanted a boat. So he bought a boat to use for charters.
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Posted: 4/20/2017 8:08:39 PM EDT
[#3]
I have section 179'd a variety of things from dirt bikes to other toys. My accountant will let me use the 179 deduction on whatever I want all she tells me is if for some reason the IRS looks into it you better be able to prove it as a legitimate expense.
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Posted: 4/20/2017 9:54:36 PM EDT
[#4]
Quote HistoryQuoted:
IMO he should be willing and able to explain it to you so you don't have to ask ARFCOM. My guess is it has to do with your CPA's reading of § 274(a) of the code and/or the IRS's interpretation of that section. In addition to that, I feel like the boat should be able to be held in an LLC in which I can rent it when I chose and others may rent it as they choose. The business would be profitable, outside of the first year only due to bonus depreciation on that first year in which that depreciation should reduce my income on my schedule C. My records are also very well kept. |
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Posted: 4/20/2017 9:56:56 PM EDT
[#5]
Quote HistoryQuoted:
When I read one of Kiyosaki's books, he wanted a boat. So he bought a boat to use for charters. |
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Posted: 4/20/2017 10:05:35 PM EDT
[#6]
Quote HistoryQuoted:
That's actually what I am working on right now. I want to buy a boat around $75,000 then do a lease back to a local charter captain. Basically the boat will be held in an LLC and the captain will pay me every time he takes someone out fishing. It lower his overhead and I have a full shop in which I can do repairs outside of warranty work and when the warranty runs out. I'm trying to buy a 2017 Toyota Highlander using the deduction. Waiting on my CPA to reply. |
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Posted: 4/20/2017 10:10:08 PM EDT
[#7]
Quote HistoryQuoted:
I think that's the best way to do it. That way all the repairs and maintenance are a liability of the LLC. I'm trying to buy a 2017 Toyota Highlander using the deduction. Waiting on my CPA to reply. Quote HistoryQuoted:
Quoted:
That's actually what I am working on right now. I want to buy a boat around $75,000 then do a lease back to a local charter captain. Basically the boat will be held in an LLC and the captain will pay me every time he takes someone out fishing. It lower his overhead and I have a full shop in which I can do repairs outside of warranty work and when the warranty runs out. I'm trying to buy a 2017 Toyota Highlander using the deduction. Waiting on my CPA to reply. I am interested about the highlander. 
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Posted: 4/20/2017 10:32:05 PM EDT
[#8]
Rumor has it, you're a shitty businessman, and broke even on operation of the business after you fully depreciated the asset.
Add to insult, you sold it back to yourself out of frustration for pennies on the dollar. The IRS never said a business has to make a profit. Just have a profit motive. Just look at Amazon or Uber, in massive debt. |
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Posted: 4/21/2017 11:30:39 AM EDT
[#9]
Quote HistoryQuoted:
Rumor has it, you're a shitty businessman, and broke even on operation of the business after you fully depreciated the asset. Add to insult, you sold it back to yourself out of frustration for pennies on the dollar. The IRS never said a business has to make a profit. Just have a profit motive. Just look at Amazon or Uber, in massive debt. I think substance over matter may come into play if I sold it to myself for pennies on the dollar. I'd just get it surveyed and used that value if the business went tits up. I always know someone wanting to buy some boats. |
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Posted: 4/21/2017 3:06:12 PM EDT
[#10]
LOL, I didn't know about your past endeavors, and was only being facetious.
I wasn't being serious about you being a crappy businessman
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Posted: 4/21/2017 4:08:52 PM EDT
[#11]
Quote HistoryQuoted:
LOL, I didn't know about your past endeavors, and was only being facetious. I wasn't being serious about you being a crappy businessman It was an expensive lesson, but you learn along from wiping out your savings. And I still had to fucking pay uncle sam that year. 
I been thinking about this all today, it seems like the easiest way to handle it is just let the boat exist in it's own LLC and then charge rent to who ever uses it. That would be my dad, another charter captain, myself etc. That should put my CPA's mind at ease, if it's used personally it get's documents and rent is paid. |
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Posted: 5/7/2017 6:26:02 PM EDT
[#12]
Quote HistoryQuoted:
I have section 179'd a variety of things from dirt bikes to other toys. My accountant will let me use the 179 deduction on whatever I want all she tells me is if for some reason the IRS looks into it you better be able to prove it as a legitimate expense. |
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Posted: 5/7/2017 6:27:38 PM EDT
[#13]
Quote HistoryQuoted:
How do you justify it with dirt bikes and toys? Quote HistoryQuoted:
Quoted:
I have section 179'd a variety of things from dirt bikes to other toys. My accountant will let me use the 179 deduction on whatever I want all she tells me is if for some reason the IRS looks into it you better be able to prove it as a legitimate expense. |
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Posted: 5/7/2017 6:28:48 PM EDT
[#14]
I had the other thread going.....I may get a used hull and repower. I think I can bonus depreciate the engines.
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Posted: 5/8/2017 11:10:47 PM EDT
[#15]
From IRS.gov:
Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. Example 1. Sarah Bradley uses a home computer 50% of the time to manage her investments. She also uses the computer 40% of the time in her part-time consumer research business. Sarah's home computer is listed property because it is not used at a regular business establishment. She does not use the computer predominantly for qualified business use. Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. She must depreciate it using the straight line method over the ADS recovery period. Her combined business/investment use for determining her depreciation deduction is 90%. |
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Posted: 5/9/2017 10:49:15 AM EDT
[#16]
Quote HistoryQuoted:
From IRS.gov: Investment Use The use of property to produce income in a nonbusiness activity (investment use) is not a qualified business use. However, you can treat the investment use as business use to figure the depreciation deduction for the property in a given year. Example 1. Sarah Bradley uses a home computer 50% of the time to manage her investments. She also uses the computer 40% of the time in her part-time consumer research business. Sarah's home computer is listed property because it is not used at a regular business establishment. She does not use the computer predominantly for qualified business use. Therefore, she cannot elect a section 179 deduction or claim a special depreciation allowance for the computer. She must depreciate it using the straight line method over the ADS recovery period. Her combined business/investment use for determining her depreciation deduction is 90%. Now I wonder how engines play into this. |
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Posted: 5/10/2017 7:23:04 PM EDT
[#17]
Quote HistoryQuoted:
Probably has a farm/ranch and uses them there to check things and fix things. |
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Posted: 5/11/2017 12:05:01 AM EDT
[#18]
Quote HistoryQuoted:
No, I volunteer with a non profit off road trail maintenance group. I do get work and referrals because I am part of that group. I can't completely expense my toys but I can part of the cost. No different than if you are in the local Corvette club and use it as a networking opportunity you can expense part of your Corvette(s) as long as you can prove that you get more business because you are in the club. Hell you probably could write of some firearm expenses if you took your employees/customers/potential customers on "range days" in hopes of obtaining more jobs/work. No different than writing off that round of golf and drinks that you talked business during. Quote HistoryQuoted:
Quoted:
Probably has a farm/ranch and uses them there to check things and fix things. |
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