title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Monday, October 11, 2004
 
Ownership Of Section 179 Assets
I'm cleaning out my "To-Post" box of questions regarding the Section 179 expensing election, since the proposed change in the amount allowable for vehicles has attracted so much attention in the past week.

From a reader:

I am a partner in a LLC - does the automobile need to be titled in the LLC's name or in my name. Thanks

My reply:

It depends on where you want to claim the Section 179 deduction.

If you are claiming it on the 1065 for the LLC, where it will be divided among all of the members via their K-1s, the vehicle needs to be in the LLC's name.

If you own it personally and use it for LLC work, you can claim it on your 1040 based on the percentage of miles driven for that business. This will give the full deduction to you and it won't be shared with the other LLC members.

I hope this helps. Your personal tax advisor can be more specific for your situation.

Kerry Kerstetter


Labels:



Powered by Blogger