Discussion:Independent Contractor Compensation by Car
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| Revision as of 21:12, 3 November 2009 AcadeTax (Talk | contribs) (I'm not asking f) ← Previous diff |
Revision as of 22:10, 3 November 2009 Kevinh5 (Talk | contribs) (I see lots of ar) Next diff → |
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| {{ForumReplyPost|UserID=AcadeTax|Date=3 November 2009|Text=I'm not asking for a way to beat ther IRS or do anything fishy/illegal, just wondering if I hadn't considered anything. Dads idea to purchase the car. We'll probably have it purchased by the LLC as a capital asset and depreciated under the existing luxury vehicle limits. I would be using this car the majority for business but for my seperate business and only occasionally for his as a client of my business. It's probably going to have to be the way I just suggested but wondering if I'm missing any better. Dad is just looking to get his son a nice car and suggested this as a way to do it. I am performing accounting, bookkeeping and property management services to his LLC.}} | {{ForumReplyPost|UserID=AcadeTax|Date=3 November 2009|Text=I'm not asking for a way to beat ther IRS or do anything fishy/illegal, just wondering if I hadn't considered anything. Dads idea to purchase the car. We'll probably have it purchased by the LLC as a capital asset and depreciated under the existing luxury vehicle limits. I would be using this car the majority for business but for my seperate business and only occasionally for his as a client of my business. It's probably going to have to be the way I just suggested but wondering if I'm missing any better. Dad is just looking to get his son a nice car and suggested this as a way to do it. I am performing accounting, bookkeeping and property management services to his LLC.}} | ||
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| + | {{ForumReplyPost|UserID=Kevinh5|Date=3 November 2009|Text=I see lots of areas for problems: insurance fraud allegations, SE tax, 1099 reporting, etc. | ||
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| + | Why not just have dad pay you in cash, as had been recommended above by SCCPA? Go and buy your own car.}} | ||
Revision as of 22:10, 3 November 2009
Discussion Forum Index --> Basic Tax Questions --> Independent Contractor Compensation by Car
Discussion Forum Index --> Tax Questions --> Independent Contractor Compensation by Car
| 3 November 2009 | |
| I'm looking for opinions on how best to setup this scenario:
Single Member LLC as a client (owner is a related party (my father)), who wants to pay for business vehicle for my use as compensation to me for my services to the LLC. | |
| 3 November 2009 | |
| I'd set it up in a written agreement. Will the car be worth what the IC thinks it's worth when the job is finished? | |
| 3 November 2009 | |
| Should have been more explicit. Open ended working agreement, my services will be performed indefinitely for the foreseeable future, monthly payments on auto paid by LLC owner which will be clients monthly compensation to me. For example, if monthly payment is $700/mo. that is my monthly fee to him. I'm looking for best way to setup from LLC's perspective. | |
| 3 November 2009 | |
| This sounds like one of those family situations where Dad is trying to buy a car for Son, and somehow get their tax returns involved to accomplish it.
What's wrong with this scenario - You perform business services for Dear Old Dad, Dear Old Dad pays you what they are worth, and you go out and buy a car? You can then deduct the business use of the car on your tax return. | |
| 3 November 2009 | |
| I have a problem with thinking that the payment on a car is the same as the value of the use of a car. | |
PVCC-CCIFP (talk|edits) said: | 2009-11-03 |
| AcadeTax:
Is dad in the car business? Is this a car the LLC aleady owns? What if any benefits to either party do you antipate? Are they worth the substantial increase in the something fishy meter? PVCC-CCIFP 12:39, 3 November 2009 (CST) | |
Mikex2e7n5 (talk|edits) said: | 3 November 2009 |
| Not too many scenarios to justify an independent contractor getting the use of a company owned vehicle. | |
| 3 November 2009 | |
| I'm not asking for a way to beat ther IRS or do anything fishy/illegal, just wondering if I hadn't considered anything. Dads idea to purchase the car. We'll probably have it purchased by the LLC as a capital asset and depreciated under the existing luxury vehicle limits. I would be using this car the majority for business but for my seperate business and only occasionally for his as a client of my business. It's probably going to have to be the way I just suggested but wondering if I'm missing any better. Dad is just looking to get his son a nice car and suggested this as a way to do it. I am performing accounting, bookkeeping and property management services to his LLC. | |
| 3 November 2009 | |
| I see lots of areas for problems: insurance fraud allegations, SE tax, 1099 reporting, etc.
Why not just have dad pay you in cash, as had been recommended above by SCCPA? Go and buy your own car. | |
