You can shoot yourself in the foot when you sell or trade your business vehicle.
It’s really easy to do. Most business people are not thinking about paying less tax when they are getting rid of the old business car.
Imagine these true stories:
A Schedule C business owner gives his Rolls-Royce to his secretary and kisses away a $300,000 tax deduction.
A corporation sells its pickup truck, suffering $30,000 in additional income that it could have avoided.
A successful self-employed woman always traded her vehicles and always used IRS mileage rates, only to miss more than $90,000 in business deductions because she did not know one tax rule.
Don’t let one of these stories happen to you. This article will help you make sure your vehicle disposition produces the best tax result for you. ... Log in to view full article.