Writing off a Lamborghini...

I'm not a CPA but if you are ACTUALLY running a rental car company and ACTUALLY renting out the Lamborghini, you should be able to write off the depreciation and treat the purchase as a cost. You will have a harder time convincing the IRS that you need a Lamborghini with an ad on it to successfully run your business and that it's a true business expense if you're just going to be driving it around for personal use. I would think you could deduct the cost of putting the ad on the car but not the car itself.

What is the difference between the cars you own and a Lamborghini? They are both passenger vehicles. Same rules apply. Ask your current CPA about it but it sounds like it is more of a recreational vehicle then anything if you are the one driving it around. Why don't you just rent it out to yourself, be your businesses best customer? Probably a rule about that too.

Why aren’t you doing this now

what am I missing

topcarbon said:

Why aren’t you doing this now

what am I missing

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My exact thought!!!

Hunter Biden said it's okay.

I’m really good at math, but some things simply don’t add up.

You can actually talk directly to the IRS if you are not sure about it. It’s a free consultation.

Generally, whatever expenses it might be, it must be 100% for business use to write it off. You may need to record each time you drive the car and for what purpose, for the 1st year to show the IRS that it is actually for business use. If there are private use involved, the expenses must be shared, in other words, you pay some percentage privately of the total write off. Keeping the records is important.

Also, your business must be profitable first before buying expensive items regardless of how big your capital is. It is not mandatory, but it helps in getting favorable response.

“You can actually talk directly to the IRS if you are not sure about it. It’s a free consultation.”

but the bail is normally 6 figures

Arthur said:

I own a rental car company and am currently considering transitioning into exotic cars starting with a Hurracan. From my knowledge (minimal research done) I am aware you can write off vehicles used as business expense If, for example, I was to put our business logo on the Lambo.
Seeing as though I own a rental car company, I am trying to attract renters into booking the Lambo so it is literally an advertisement on wheels.
Are there any CPA's here or anyone knowledgable in this regard that could give me their opinion?

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There was a guy on this site that did that. We haven’t heard from him, ever since the warden took away his internet access…

AngelOfMurci said:

“You can actually talk directly to the IRS if you are not sure about it. It’s a free consultation.”

but the bail is normally 6 figures

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Heheh. The secret is be upfront & keeping things transparent. When audit comes, things would go smoother because it gives you a stand point for good argument. Lots of dudes got problem because they relied on CPA alone. And the CPA isn't always right. IRS is always right.

Sakura said:

You can actually talk directly to the IRS if you are not sure about it. It’s a free consultation.

Generally, whatever expenses it might be, it must be 100% for business use to write it off. You may need to record each time you drive the car and for what purpose, for the 1st year to show the IRS that it is actually for business use. If there are private use involved, the expenses must be shared, in other words, you pay some percentage privately of the total write off. Keeping the records is important.

Also, your business must be profitable first before buying expensive items regardless of how big your capital is. It is not mandatory, but it helps in getting favorable response.

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Agree about the record keeping. Keep a small mileage log book in the car and document the odometer readings when using the Huracan explicitly for business purposes. This does not include commuting between home and principal business location nor does it include driving the car for personal use. You will draw the IRS' attention by deducting 100% of mileage explicitly for business use unless the accrued mileage is 100% for customer rental use.

Also, I'd like to add that four door cars are treated differently than two door cars for tax write off. Even if they cost the same. Two door cars are determined as fun cars for personal use which means that the IRS will try to get you to pay some out of your own pocket even if you can write it off. Four door cars, especially one that has large loading space, like expensive vans or even limo, are most likely can be write off 100% because you can use the loading space to haul off work stuff. But it really all comes down to record keeping and being able to prove that you use it solely for work. Even better if you have other personal car in that level. Just sharing my tiny knowledge from my past experiences dealing with the man in black.

A mileage log book in this country is a nightmare.

Odometer reading at address A, must also include address location
Odometer reading at destination address B, must also include address location
Distance between the 2 points
Reason for the travel

Go to 2 stores, 1 restaurant, drop off your girlfriend and go back home you will have so many data entries you will be spending more time filling stuff out than driving. You forget one mileage entry and you are screwed trying to piece it all back together.

Luzifer said:

A mileage log book in this country is a nightmare.

Odometer reading at address A, must also include address location
Odometer reading at destination address B, must also include address location
Distance between the 2 points
Reason for the travel

Go to 2 stores, 1 restaurant, drop off your girlfriend and go back home you will have so many data entries you will be spending more time filling stuff out than driving. You forget one mileage entry and you are screwed trying to piece it all back together.

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Sounds like a great idea for an App

AngelOfMurci said:

Sounds like a great idea for an App

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It exists already. They want mucho money every month for it.

Also, if you own a Lamborghini through corporate structuring, on the hierarchy of owner statuses I wouldn’t say you’re a true Lamborghini owner, you’re more like an owner of a business that happens to have Lamborghinis as an asset.

Sakura said:

You can actually talk directly to the IRS if you are not sure about it. It’s a free consultation.

Generally, whatever expenses it might be, it must be 100% for business use to write it off. You may need to record each time you drive the car and for what purpose, for the 1st year to show the IRS that it is actually for business use. If there are private use involved, the expenses must be shared, in other words, you pay some percentage privately of the total write off. Keeping the records is important.

Also, your business must be profitable first before buying expensive items regardless of how big your capital is. It is not mandatory, but it helps in getting favorable response.

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There are going to be 100,000 new armed IRS agents that are going to make sure you are doing it correct.....do worry, they will find you