Mark J. Kohler
CPA, Attorney, Author
www.markjkohler.com
April - Transportation Tax
Strategies: Auto, Truck, RV,
Motorcycle and Airplane Deductions
Welcome
and Introduction
Wednesdays LIVE 12pm MTN
Transportation Tax Strategies: Auto,
Truck, RV, Motorcycle and Airplane
Deductions in 2016
Transportation
Multiple Personal OR
Business cars
versus
Travel
Airfare
Hotel
Trucks
Rental Cars and their gas
Motorcycles
Trains
Vans
Subways
RVs
Valet
Airplane
Taxis
Diesel Trucks
Tracking Mileage
www.deductr.com/markjkohler
Maximize Auto & Truck Write-Off!!
Auto – Mileage versus Actual
*Always keep mileage records if there is personal use
Mileage
Actual
Business
2016 – 54 cents
Medical/Moving
2016 – 19 cents
Next Slide
Charitable
2016 – 14 cents
Personal and
Commuting NonDeductible
- Don’t Forget Business % of
Interest on Auto Loan
Actual Auto/Truck Deduction
Option 1- Own
Option 2- Lease
-Fuel, repairs, maintenance,
auto loan interest, etc.. (for example 90% business use)
Deduct the % of business of these expenses
AUTO
Depreciation Limits
$3,160
2016
BONUS (on NEW)
50% of purchase up
to $11,060
USED
$3,160 1st Year
$5,100 2nd Year
$3,050 3rd year
$1,875 every other
SUV
>6,000 lbs
Depreciation
Expense
$25,000
NEW or USED
Then Bonus
50% of purchase
price up to $11,460
(if NEW)
$3,560 1st Year
$5,700 2nd Year
$3,350 3rd year
$2,075 every other
TRUCK
< 6ft bed
>6,000 lbs
Depreciation
Expense
$25,000
NEW or USED
Then Bonus
50% of purchase
price (if NEW)
$3,560 1st Year
$5,700 2nd Year
$3,350 3rd year
$2,075 every other
Separate Slide
BIG TRUCK
> 6ft bed
>6,000 lbs
Depreciation
Expense
UP TO
$500,000 179
Then Bonus 50%
(if not already
written off)
Then remaining
over 5 years
SUV/Truck Deduction
Example: Escalade or truck with less than 6ft bed
$50,000 Purchase Price (new or used) 20,000 miles in 2016
(with a loan or not no down payment or not)
$5,000 Personal Use (10%)
$45,000 Basis
$25,000 Section 179 Deduction
$20,000 remaining basis
$10,000 50% Bonus
$10,000 remaining basis
$ 2,000 Standard Depreciation (5 years)
$ 3,375 Fuel (18,000 miles, 12 MPG, $2.25 gallon) )
$ 1,500 Insurance, maintenance, etc.. (90% portion)
$ 3,000 Interest (90% portion)
$44,857 Total Deduction
Truck/Diesel/Sem-I Deduction
UP TO
$500,000
Section 179
Then Bonus 50%
(if not already
written off)
Then remaining
over 3 years
Lease Deduction
If a higher lease
Payment then take the
Payment as an actual
Expense plus
Everything else
Actual
Mileage
- Fuel, repairs and maint
Business
2016 – 54 cents
- % of Lease Payments
- Small lease “add back”
schedule
- Mileage limits &
residual value?
- Amortize down
payment
Medical/Moving
2016 – 19 cents
Charitable
2016 – 14 cents
Personal and
Commuting NonDeductible
RUN THE NUMBERS!!!!
If you have a lower
lease payment consider
Mileage to get a better
Overall write-off AND
A lower payment rather
Than buying
Deducting an RV
Based on Business
use %
$500,000 179
Then Bonus 50%
If NEW and not
already written off)
Then remaining
balance over 5 years
- If you have a home base (stick & brick home) then the RV is much more likely
deductible.
- % of business use…using the RV as business vehicle.
- HOWEVER, if the RV is your primary residence then the RV is very difficult to
deduct. Not even home office…but we take mileage from business site to business
site.
Electric
Cars
100% Electric AND Plug in Hybrids can receive tax credits of up to $7,500.
NO Hybrid deduction (2015)
NO alternative fuels (natural gas) (2015)
-
Better Electric rates
Discounts on Insurance
States offer credits on home charging equipment
Some states offer state tax credits as well
HOV ‘Car pool’ lane
Deducting an Motorcycle
Business
2016 – 54 cents
Medical/Moving
2016 – 19 cents
Charitable
2016 – 14 cents
GO
MILEAGE!!!!
Personal and
Commuting NonDeductible
Deducting an Delivery
Van/Truck
Based on Business
use %
$500,000 179
Then Bonus 50%
If NEW and not
already written off)
Then remaining
balance over 5 years
Deducting an Airplane
Based on Business
use %
$500,000 179
Then Bonus 50%
If NEW and not
already written off)
Then remaining
balance over 5 years
(Commercial- 7 years)
John and Mary Jones
Business/Tax/Asset Protection
Organizational Plan
Holdings
Operations
Investments
Sef-Directed, LLC
(LLC)
Cabin
FUTURECO, LP
(State?)
Limited Php
Partnership
XYZ, LLC.
(State ?)
(LLC)
33%
Ptnr
33%
Ptrnr
1%
General
Partner
FUTURECO, LLC
(State?)
XYZ
Operations, Inc.
(S-Corp)
(State ?)
Sponsor
401k
Buy real estate
With loans
Avoid UBIT
100%
SMLLC
Investment
Accounts
Rehabs
Construction
Fix and Flips
Spec homes
401k
Retirement
Plans
99%
Limited
Partner
U.S. COPE, LLC
(Wyoming)
(LLC)
CA
1065
K-1
K-1
100%
Life Insurance
Policies
K-1
ALWAYS:
- Pay for Auto Expenses out of company
- Pay for Auto Payment
Accountant cleans up the ‘books’ with
Journal entries at end of year.
FUTURECO, LLC
(State?)
Rentals
100%
SMLLC
33%
Options for Auto
- Book Mileage as a journal entry
- Reimburse the amount of auto mileage
deduction monthly
Texas
Rentals
Jones Family
Revocable Living
Trust
Potential Domestic
Asset Protection Trust
DAPT
(NV/UT)
Personal Home
THANK YOU!
www.markjkohler.com
1-888-801-0010
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regarding recordings
[email protected]
888-801-0010 | [email protected]