Discussion:Qualified nonpersonal use vehicle - would you appeal?
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Revision as of 00:40, 20 December 2008
Discussion Forum Index --> Advanced Tax Questions --> Qualified nonpersonal use vehicle - would you appeal?
Discussion Forum Index --> Tax Questions --> Qualified nonpersonal use vehicle - would you appeal?
| 20 December 2008 | |
| Under exam, Tax Compliance Officer has significantly adjusted taxpayer's car and truck expenses (by more than $10,000) stating, in reply to the contention that a work van was a qualified non-personal use vehicle under Sec. 274(i) and Reg. 1.274-5T(k)(7) that "legislative history to section 274(i) provided a list of qualified nonpersonal use vehicles and identified a number of examples of qualified nonpersonal use vehicles such as school buses, qualified specialized utility repair trucks, and qualified moving vans. Because the vehicle used in your business was designed, manufactured, marketed and sold to individuals for personal purposes, the fact that you used it in your business does not convert it to a qualified nonpersonal use vehicle."
TP is a specialty subcontractor, and the full-size van had no back seats (see Reg. 1.274-5T(k)(7), only an area for hauling supplies and materials. However, TP does not have any mileage logs or documentation, nothing even showing odometer readings because he did all his own maintenance on the van. The TCO seems to be taking the position that only commercial vehicles, e.g. - FedEx delivery trucks, can be non-qualified personal use vehicles. Do you think this is true? Would you take this to an appeals officer? | |
