Results 1 to 7 of 7

Thread: Who should own my future coach?

  1. #1
    Jimbeaux Guest

    Default Who should own my future coach?

    New guy here and not quite sure how to register a coach. Here are the facts: Have residences in Louisiana and New York. Own a business incorporated in New York. My wife and I have another New York C-Corp which owns property and rents to my business. The business, my wife and I all have good credit and decent steady income. I would like to put 20% down on a 2002 H3-45 with the business paying the monthly financing. My CPA says a coach is a legitimate business expense.

    I want to play by the rules, pay my taxes and not play games with a Montana LLC. However, I don't want to throw money away if legally possible.

    It seems finance companies and insurance companies mentioned in POG don't really want to deal with businesses but people.

    Hence, how should I register and pay for a coach utilizing the business as much as possible because of tax breaks? Should the coach be in the business name or personal? Of course, I want to protect my business and personal assets.

    Thank you.

  2. #2
    Join Date
    May 2006
    Location
    Diamondhead
    Posts
    447

    Default TAX BREAKS

    Email captmogul@aol.com and he may be able to give some facts. He and Sandy are members. Dan
    Danss 1999 Vogue, 03 Chev. Trailblazer

  3. #3
    Join Date
    Sep 2009
    Location
    Hermon
    Posts
    91

    Default

    Jim you may want to consider buying your self and leasing to your corp. Rick

  4. #4
    Join Date
    Jan 2006
    Location
    anytown
    Posts
    8,908

    Default

    We bought both coaches personally, and then used them in our business. (Really, go to www.jamestownadvanced.com to see the products we developed and sold via trade shows).

    We were able to deduct all expenses and depreciation. We did pay the NY sales tax based on a bill of sale we provided. There is no book value (or wasn't anyway) so the DMV had to go by the bill of sale.

    Since you are going to flow some or all of the expenses through a C corp you just need a lease agreement. Your accountant can help you structure that so you get the best tax advantage.

    Nice to see someone remaining in NY to support the welfare constituency. If you do have to buy fuel, got to Irving where 5 and 20 come togther or down to Salamanca.

  5. #5
    Join Date
    May 2008
    Location
    Foley
    Posts
    94

    Default

    Jim: My business owns my coach and I deduct all expenses including depreciation but I have to keep up with my personal miles and pay back to the business based on the fair rental of a coach.
    On the Montana LLC the state of Ala has started sending out bills for use tax in the amount sales tax should have been paid so that is going to put a stop t
    o that deal.
    Bill

  6. #6
    Join Date
    Jan 2006
    Location
    anytown
    Posts
    8,908

    Default

    I have been warning folks about the Montana LLCs so at the risk of sounding like a broken record I would suggest those that are still running with Montana plates but living elsewhere use extreme caution. As the country's budget problems worsen the various states will really be going after folks. The word is obviously getting out and the states will be getting very active at extracting their fair share. Nobody can go after you if your bus, toad and driver's license are all from the same state. Having your business own the bus is nobody's concern except the folks who collect income taxes.

    With prices of coaches so devalued now it is a good time to sell the coach to yourself, eat a little sales tax and sleep good at night.

    If you can blend the use of a coach personally with a business purpose the IRS will not expect you to claim personal use. For example we not only were developing and promoting campground equipment, we were also using the bus for seminars that we did on behalf of a major customer. While we were in a city for a seminar, we stayed several days longer visiting the city and seeing the sights. Since we had to go there anyway (the bus carried all the display and seminar materials) mileage, maintenance, etc was still a claimed expense. What we could not and did not claim as expenses were campground site rental expenses unless the purpose of the trip was for our campground equipment business.

  7. #7
    Join Date
    May 2007
    Location
    Port St. Lucie, FL
    Posts
    1,745

    Default

    And yes, even the IRS is busy turning over every stone looking for money.

    We just survived an audit of our 2007 taxes.

    When we purchased our bus in September, 2007, we decided against setting up a Montana LLC to avoid (notice I didn't say "evade") paying the sales tax due the State of Florida...... so we paid the 15 large to the Sunshine State, took a deep breath and just considered it part of the cost of buying the bus.

    At least, we could claim the sales tax paid to Florida on our Federal 1040 return.

    Fast forward to 2009 and a thick envelope arrives from the IRS (never good...tax refunds don't come in large envelopes!) and they inform us that the are conducting an "Examination by Mail" and if we would just send them some additional information regarding the sales taxes claimed in 2007 (they never tell you EXACTLY what they are looking for) all will be well.

    So, I gather up our bus sales agreement showing the State of Florida sales tax, send off a copy and and assume that will be the end of it.

    Nope.... I get another letter that if I simply send them a check for roughly 7 grand, which includes taxes due, interest and penalty's, that I won't hear any further from them. I question this and they reply that I didn't prove that "I actually took posession of the bus". What I had provided was a promise to buy. How were they to know I actually purchased it?

    Well, long story short, after many months, several mailings and numerous copies of all sorts of associated documentation and NEVER actually being able to speak to an actual human being employed by the IRS..... they finally accepted the fact that we DID INDEED PAY THE SALES TAX that we claimed on our '07 return.

    And they closed our file without amending our return.

    That's the thanks I got for doing what I believed to be "the right thing."

    So, it does not surprize me one bit that states will be giving the Montana LLC's a very close and hard look.

Similar Threads

  1. Who should own my future coach?
    By Jimbeaux in forum The 'Biz" of Prevost Ownership
    Replies: 3
    Last Post: 10-29-2009, 10:48 PM
  2. Future Prevost Owner
    By rickdesilva in forum WHERE TO FIND STUFF: Links and Resources
    Replies: 2
    Last Post: 05-18-2009, 09:40 PM
  3. Future Rallies?
    By Petervs in forum RALLIES AND GET-TOGETHERS
    Replies: 33
    Last Post: 06-28-2008, 09:15 AM
  4. Future Rally Size.
    By Jon Wehrenberg in forum RALLIES AND GET-TOGETHERS
    Replies: 19
    Last Post: 04-22-2008, 08:59 AM
  5. Future Rally Site??
    By Loc in forum RALLIES AND GET-TOGETHERS
    Replies: 19
    Last Post: 09-18-2007, 12:27 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •