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Discussion Starter · #1 ·
I was wondering if any members here use their Lamborghini for business purposes? I'm already thinking about using my prospective car to advertise my business and turning it into a "moving billboard". I will drive it around and park it where it will get a lot of exposure. We don't see too many Lambos around here.

Just curious if anyone else is doing something creative and generating cash flow with their cars.
 

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Discussion Starter · #7 ·
You are inviting the irs to use a microscope into every opening in your body
I don't mean trying to claim tax deductions or anything... I'm just curious to know if anyone is doing any sort of "side hustle" with their car, whether it's producing "content" with it on Youtube or renting it out on Turo LOL.
 

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Putting a "decal" on the car does make make it an advertising expense.
There is tax case law on that subject.
However, the cost of the decal could be deductible.

If you use your Lambo for business less than 50%, you can deduct the IRS mileage of about .60 cents a mile.
Depreciation is limited, even if you use the car 100% for business.
For example, it could take 20 years to fully depreciate a car costing $50K.
When the vehicle use drops below 50% use, recapture and other issues come to play.
And most important with any vehicle use is contemporaneous mileage logs.

Note commuting from home to office is not deductible.
In your case, as an example, driving to the grocery store with your "advertising car bill board" is not a deductible expense nor is just parking it on a street for viewing.

Reading between the lines, it seems you are seeking a substantial tax benefit.
I'd say you idea does not accomplish that goal.

But if you use the Lambo vehicle for business purposes, like picking up office supplies or making sales calls, you do have a legitimate deduction.

Yet, as many refer to above using actual expenses, even with a prorated percentage, could invite IRS attention, so I be inclined to say the standard mileage rate is you option.

Best free tax advise - see your accountant.
Good luck wished.
 

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Tax considerations aside.

  • There was a local guy who bought a Countach several years ago and used it to advertise his coffee shop. If you spent enough, he would take you for a ride in the car. Just heard rumors about it and I don't think it lasted long.
  • When I was a kid, a local automated carwash owner had a collection of Lamborghini Countach and used them in all of his ads. "Carwash is so safe, I send my Lamborghini collection through them."
  • I have seen a few Lamborghini cars in my area and many of them have ads plastered all over them. Some small stickers, some plaster the entire car.
As far as how effective these schemes were, I don't know.
 

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Discussion Starter · #10 ·
Tax considerations aside.

  • There was a local guy who bought a Countach several years ago and used it to advertise his coffee shop. If you spent enough, he would take you for a ride in the car. Just heard rumors about it and I don't think it lasted long.
  • When I was a kid, a local automated carwash owner had a collection of Lamborghini Countach and used them in all of his ads. "Carwash is so safe, I send my Lamborghini collection through them."
  • I have seen a few Lamborghini cars in my area and many of them have ads plastered all over them. Some small stickers, some plaster the entire car.
As far as how effective these schemes were, I don't know.
Thank you for chiming in. This is EXACTLY the type of information I was seeking.
 

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Discussion Starter · #11 ·
Putting a "decal" on the car does make make it an advertising expense.
There is tax case law on that subject.
However, the cost of the decal could be deductible.

If you use your Lambo for business less than 50%, you can deduct the IRS mileage of about .60 cents a mile.
Depreciation is limited, even if you use the car 100% for business.
For example, it could take 20 years to fully depreciate a car costing $50K.
When the vehicle use drops below 50% use, recapture and other issues come to play.
And most important with any vehicle use is contemporaneous mileage logs.

Note commuting from home to office is not deductible.
In your case, as an example, driving to the grocery store with your "advertising car bill board" is not a deductible expense nor is just parking it on a street for viewing.

Reading between the lines, it seems you are seeking a substantial tax benefit.
I'd say you idea does not accomplish that goal.

But if you use the Lambo vehicle for business purposes, like picking up office supplies or making sales calls, you do have a legitimate deduction.

Yet, as many refer to above using actual expenses, even with a prorated percentage, could invite IRS attention, so I be inclined to say the standard mileage rate is you option.

Best free tax advise - see your accountant.
Good luck wished.
I am not seeking to use the car as a tax write-off, but I do appreciate the wealth of useful information you have provided. I was actually an accounting major in college and know for a fact the IRS is very strict when it comes to writing off "luxury cars" as an business expense.
 

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I have to agree with Top Carbon. If you were an accounting major then you are well aware that there are many gray areas in the Tax code. If you flaunt a Lamborghini on your tax return whether legit or not, it will surely trigger audits and probably even retribution from an auditor. Gray can become black in their favor very quickly. I had a good friend that was a collector for the IRS. He said the main thing that made them come down hard were arrogant, criminal and ostentatious filers. (Guys with 200K cars showing no income or claiming business use for example) Most agents are normal people but some are real A$$holes. Use the lambo for FUN . It is a toy. Treat it as such. Lee
 

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Discussion Starter · #13 ·
I have to agree with Top Carbon. If you were an accounting major then you are well aware that there are many gray areas in the Tax code. If you flaunt a Lamborghini on your tax return whether legit or not, it will surely trigger audits and probably even retribution from an auditor. Gray can become black in their favor very quickly. I had a good friend that was a collector for the IRS. He said the main thing that made them come down hard were arrogant, criminal and ostentatious filers. (Guys with 200K cars showing no income or claiming business use for example) Most agents are normal people but some are real A$$holes. Use the lambo for FUN . It is a toy. Treat it as such. Lee
Fully agreed, but if one can mix business with pleasure, that for me sir, would be ideal. More or less what Ohlgren had described above. There are tons of legitimate ways to lower your tax bill and writing off a Lamborghini is definitely NOT one of them.
 

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If there is one TOTALLY flawed government entity, it HAS to be the accounts receivable department, ie IRS.

Al Capone killed hundreds and he went to alcatraz on tax evasion. Ask DMX, Wesley Snipes, etc....

Biden and Pelosi want their money and they will put you in jail if you don't give it to them.

Does that mean I just bend over and let them have their way with me? Mostly, yes, but I still fight a little! LOL

When it comes to gray areas on my tax burden, I just give it to the IRS, I'd gladly pay them the few extra K's to leave me alone.
 

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Discussion Starter · #16 ·
I saw a Huracan out in the wild a couple weeks ago. It had stickers on it advertising a business. The wife looked it up to see what the guy did. Got us to look at his website, so it was a least a little effective. We didn't need any gun parts though....
LOL, that is interesting. I always thought it would be hilarious to advertise Chinese delivery or pizza with a custom topper on a Lambo. Something like that will get the whole town talking, especially in my area where Lambos are still few and far between.
 

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I thought about the pizza delivery sign also. It would be a great joke.It would really be funny to actually deliver some.
 

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I was once a CPA.

No. You'll have people tell you that they write off the entire car as an advertising expense by putting a wrap on it, you'll have people tell you that it can pass as a work vehicle. These people dont have the slightest clue.

There are very, very few circumstances where you can get a valid tax deduction out of a car like this. I usually dont comment on threads like this because everybody who read a single nolo article thinks they know better than someone who had a CPA. Its just frustrating. Start a youtube channel about it and hope it does well so you can move it beyond a hobby business. Anything more than that isnt worth the time and/or trouble. If this car isnt somehow pivotal to your business, it probably isnt valid. Saying its a fancy work van isnt going to cut it.

The only thing I'll say is that vehicle deductions are massively misunderstood by the general public. I know countless people who have written off the entire purchase price of an exotic car because they truly believed it was a legal deduction. I dont know a single person who has been audited and had it caught. That isnt saying you should do it - you absolutely shouldnt, but people unfortunately get away with it every day. Even less fortunate is how these people will go online and argue about how "well, I did it and nothing happened, so obviously that means its allowed! You dont know anything!"

Quick rule of thumb: If you'd feel shaky sitting across the table from an auditor and explaining why your deductions are valid, chances are you should avoid it.
 
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