Who should own my future coach?

[Jimbeaux]

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.

[Danss]

Email captmogul@aol.com and he may be able to give some facts. He and Sandy are members. Dan

[treedoc]

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

[Jon Wehrenberg]

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.

[Bill1170]

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

[Jon Wehrenberg]

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.