The Cost of Ownership

[Petervs]

First of all I would suggest you get a better accountant.

When you buy a bus and put it into business service, that is when depreciation starts. You can depreciate it under several schedules not just the first year big deduction mentioned above. if it has a service life of 3 or 5 or 7 years you can choose that time and do a straight line depreciation. Depends on how long you plan to use it for business and in what years you want the expense to offset income.

I pro rate my bus used between business and personal travel, a varying percentage each year. I add up all the expenses of owning it ( fuel, maintenance, insurance, etc...) and the business percentage of that is a deduction to my business income.

Be wary of the mention of "credits" in prior posts, there is a big difference between a tax deduction and a tax credit.

Seriously, I think your accountant needs more education, and I do not think it is your job to do that, find one who knows his stuff better.

[Denny]

If your LLC is the typical one that many of us have, there are no taxes filed or paid either state or federal. Be careful on the accounting with the LLC or you may be into a lot more expense than you anticipated with the LLC

[Jon Wehrenberg]

Wow....how do you have an entity like an LLC that has no reporting requirements? Talk real slow. Because an LLC (Limited Liability Corporation or Company) is presumed to be a business and thus has an obligation to file, I want to know how you are avoiding filing.

If you do not have to file because the LLC has no status as a business, why go to the bother of forming one. Just register the coach in your name in Montana at some mailbox service with a physical address.

[Denny]

Details, details, details. That's why we hire attorneys, accountants, business advisers, etc. If we knew everything we would not need them. Its been nearly ten years ago when I formed my LLC and I was told then that I would not have to file tax returns and have not done so. To date I have not been questioned.

I believe the reason was because the LLC was not conducting business. I have other LLCs in Ohio and yes, I do have to file and pay state and federal taxes but these LLCs are conducting business. There is also the protection of a corporation from personal liabilities that would not be available if the bus was registered in an individual name.

My concern was if Adam's LLC starts conducting business and has a set of books then it may become necessary to file tax returns since the original reasons for establishing the LLC has changed.

If any other questions contact my Montana attorney, John Bennett, and he will give you the real reasons.

[Jon Wehrenberg]

I'm not an attorney, I did not sleep in a Holiday Inn Express last night, and I know diddly squat about the law and accounting.

But I do know an LLC is a business enterprise. It does not have to be active, it does not have to generate and income or a loss, but it does have to file a tax return. If an LLC was formed solely to EVADE (avoid is a legal way of not paying taxes and an LLC formed solely to avoid taxes is close if not actual evasion) taxes is a very risk proposition.

If an LLC is formed to provide a means of renting a bus that is a business enterprise and will require tax returns, and that allows depreciation and the claiming of expenses to offset income.

[JIM KELLER]

I suspect this group has at least one attorney in the membership and I hope they will participate in this Thread.

[Sid Tuls]

Just a note if you have one of these bs LLC in Montana make sure you have it for your tow car as well!! They are ticketing here in Calif. I speak of experince they got me big time!! Plus they honestly have bounty-hunters in R.V. parks to turn you in to the Highway Patrol. Beware of Pismo Coast Village.







Sid & Judy Tuls
2007 Thompson

[garyde]

Jon. The Montana attorney's take care of all yearly filings.
Adam. You might want to check with your accountant or another one regarding Leasing. There are plenty of business models out there which can be copied.
I spoke to a company who wanted to have me Lease my previous Coach out to people @ $4000- 5000.00 per week . I would take care of Insurance, maintenance, tires, etc. , they would get a commission for leasing it, the lessor would pay for diesel. Some people do this, but I felt it would be too much wear and tear.
With the entertainment Coaches, the lessor also has to pay for a Licensed driver as well.