Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.3 4.3bsd-beta 6/6/85; site ucbvax.BERKELEY.EDU Path: utzoo!watmath!clyde!burl!ulysses!ucbvax!ernie!wrf 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 Sender: usenet@ucbvax.BERKELEY.EDU Reply-To: wrf@ernie.UUCP Distribution: na Organization: University of California at Berkeley Lines: 24 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