Asuming your Corp intends to resell the vehicle immediatley in 07 will the title transfer need to be finallized before year end or can you hold the title open until the vehicle is resold to avoid sales tax and still take the lump sum deduction for 06.
2006-12-28 09:58:44 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No, that would be a "related party" transaction and any loss is not allowed.
2006-12-28 10:32:18 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
Failure to re-title the vehicle with the intent of avoiding sales tax would probably be considered fraud by your state. Even if related party rules did not apply, the Section 179 deduction you appear the be seeking, does not apply in this case.
To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business.
Reselling the vehicle immediately is not use in your business.
2006-12-28 10:46:57 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋