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From: wrf@ernie.BERKELEY.EDU (W. Randolph Franklin)
Newsgroups: net.taxes,net.legal
Subject: Buying a car for business use (query)
Message-ID: <10933@ucbvax.BERKELEY.EDU>
Date: Fri, 8-Nov-85 10:19:02 EST
Article-I.D.: ucbvax.10933
Posted: Fri Nov  8 10:19:02 1985
Date-Received: Sun, 10-Nov-85 09:39:21 EST
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Xref: watmath net.taxes:913 net.legal:2545

As I understand it, if you buy a car in December 1985, and use it 100%
for business for that month, then you get the 17% deduction and a
tax credit. That you may use it for personal things like commuting
in 1986 is irrelevant - you just can't take the 86 deduction.

I also understand that the IRS ignores the letter of the law, if, in
their opinion, the taxpayer is taking too great an advantage of
some rule. (Although Justice what's-his-name said that no one is
obliged to pay more tax than necessary, the IRS has said that
business arrangements constructed solely for tax purposes w/o any
other reason aren't valid.)

What experience have people had with buying business property
towards the end of a year, taking the maximum deduction, and then
converting it to personal property?

Please send replies to me, and I will post a summary w/o the names
to the net.

Wm. Randolph Franklin, UC Berkeley,  
Arpanet: wrf@ernie.Berkeley.EDU
USPS: Computer Science Div., 543 Evans, University of California,
	  Berkeley CA, 94720, USA
415-642-9955