Discussion:Last Chance: Motor Home & 179
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| {{ForumReplyPost|UserID=JR1|Date=28 June 2006|Text=Is this any different than the over the road truck cabs? The driver lives there...I'd think the application would be the same.}} | {{ForumReplyPost|UserID=JR1|Date=28 June 2006|Text=Is this any different than the over the road truck cabs? The driver lives there...I'd think the application would be the same.}} | ||
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| + | {{ForumReplyPost|UserID=Warren|Date=28 June 2006|Text=Just because he uses it for lodging doesn't make it real estate. It is still a piece of business equipment and IRC 179 is allowable. As I said earlier though, I would be sure that there are spotless records on usage. Where driven, fuel purchase receipts that match the "where driven" records, mileage, odometer readings, purpose of trip, clients seen, etc. I'm sure in an audit setting, IRS auditor would try to disallow some or all of a motor home deduction.}} | ||
Revision as of 21:42, 28 June 2006
Discussion Forum Index --> Tax Questions --> Last Chance: Motor Home & 179
Mtmckeecpa (talk|edits) said: | 27 June 2006 |
| About a week ago I posted a couple of questons about motor homes (RVs) and whether or not a 179 deduction was available. Had no reponses...
I could only find one court case (Robert D. Shirley, TC Memo 2004-188) about taking the 179 on a motor home...taxpayer prevailed becuase they were in the business of renting and selling motor homes, etc... Has anyone taken IRC 179 or reg depreciation on a motor home (RV) used in a trade or business other than a motor home rental business? Maybe used as a business vehicle or taken a portion of a motor home under some other theory? If you have an opinion and you don't want to post it here contact me offsite. Thanks. | |
| 27 June 2006 | |
| As long as it is used in the business 100% and it's ordinary and necessary for the type of business, I would say that it could be expensed under IRC 179. It doesn't even fall under definition of SUV so it wouldnt be limited by the $25k limit. The IRS auditor would challenge it under audit I would think but if it is ordinary and necessary in that type of business and it is actually used 100% for business I would think that you could support it. Keep good mileage and usage records!! | |
Mtmckeecpa (talk|edits) said: | 28 June 2006 |
| Warren & Dennis,
Thank you for the response! What I am trying to get my arms around is that the motor home can be used simultaneously for transportation and lodging. Is the 179 available IF the taxpayer also uses for lodging? (Under Shirley, the court said that 179 was available because any "substitute" property would qualify for 179, i.e., rental car and overnight lodging in a hotel/motel). S corp client whose 100% shareholder wants to use as a buseinss vehicle AND as a place to stay in lieu of motels when on the road for business. I agree squeaky clean records is a must... What if the useage is only 60%? I think less than 100% and there is a problem with 179, 280A and personal use...(see Perry v. Comr., TC Memo 1996-194). Again, thanks for your earlier comments. | |
| 28 June 2006 | |
| Is this any different than the over the road truck cabs? The driver lives there...I'd think the application would be the same. | |
| 28 June 2006 | |
| Just because he uses it for lodging doesn't make it real estate. It is still a piece of business equipment and IRC 179 is allowable. As I said earlier though, I would be sure that there are spotless records on usage. Where driven, fuel purchase receipts that match the "where driven" records, mileage, odometer readings, purpose of trip, clients seen, etc. I'm sure in an audit setting, IRS auditor would try to disallow some or all of a motor home deduction. | |
