Business Owner-Auto Expenses

328skidpad · 05-19-2011, 10:48 AM

I want to get coilovers for my company car and was wondering if this would be a ethical expense. Please feel free to list other mods that you think are shady and/or 100 justifiable

Freakazoid · 05-19-2011, 12:11 PM

what's your company?

Tondtar · 05-19-2011, 12:40 PM

I think you can pretty much classify any auto parts you pay for and get an invoice showing the $$$ amount as "auto service/ maintenance" on your taxes .....Until you get audited.

328skidpad · 05-19-2011, 12:43 PM

IT Consulting Firm specific to Fortune 500 companies.

I understand that you can invoice anything but obviously dont want any red flags...

obvious ethical expenses
tires
oil
filters

Tondtar · 05-19-2011, 12:48 PM

Quote:

Originally Posted by 328skidpad

IT Consulting Firm specific to Fortune 500 companies.

I understand that you can invoice anything but obviously dont want any red flags...

obvious ethical expenses
tires
oil
filters

How many tax auditors do you think know what a coil over is, really? Besides, as long as you can provide a valid receipt that matches the date and amount, I doubt if any auditor has the time to go through each one in detail. Most audits are just random questions about certain parts of your expenses. It's not a line item by line item process. They just don't have time for that.

Freakazoid · 05-19-2011, 01:18 PM

Quote:

Originally Posted by Tondtar

How many tax auditors do you think know what a coil over is, really? Besides, as long as you can provide a valid receipt that matches the date and amount, I doubt if any auditor has the time to go through each one in detail. Most audits are just random questions about certain parts of your expenses. It's not a line item by line item process. They just don't have time for that.

this, buuut...

you did ask from an ethical perspective. From an ethical perspective, it's not really ethical as it's not required for transportation/keeping the car running. However you could always argue it makes the car looks better, thus giving yourself a better image, etc etc . Ethical is always grey

also OP saw you're from Pittsburgh. nice, small world

I do IT consulting as well (although not my own business sadly)

Tondtar · 05-19-2011, 02:47 PM

Damn right ...From an ethical standpoint, even if I fart in my car and have to roll the window down to get rid of it, I can charge a healthy consulting fee for the time I spend doing so ...Hey, you can't drive when the window is all fogged up so it is a "keeping the car in running condition" expense in my books

ABQ325i · 05-19-2011, 10:48 PM

Quote:

Originally Posted by Tondtar

How many tax auditors do you think know what a coil over is, really?

How many tax auditors do you think know how to use google?

If you do not need the item for the day to day running of the car then it is not deductible. Doesn't mean you can't try though.

KGB7 · 05-20-2011, 12:50 AM

I would get a written authorization from your employer first, stating that you can modifie the car.

Last thing you want, is losing a job because you installed springs or aftermarket air filter.

Kroy · 05-20-2011, 02:50 PM

OP sounds like the business owner

Gregxi · 05-21-2011, 08:27 AM

If you own the business, then it is no problem. Vehicle maintenance is not a red flag unless you start spending 10's of thousands on one car. With receipts your fine.
First you have to get audited, Have you been audited before?
One line item increase on your tax return should not raise any eyebrows.

If you are not the owner of the business, that is the ethical part. I would terminate your employment if you tried to expense that.

05-19-2011, 10:48 AM	#1
328skidpad Lieutenant 55 Rep 495 Posts Drives: 328xi e350 Z4M X3 M40 Join Date: Jun 2005 Location: Princeton NJ iTrader: (0)	Business Owner-Auto Expenses I want to get coilovers for my company car and was wondering if this would be a ethical expense. Please feel free to list other mods that you think are shady and/or 100 justifiable
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05-19-2011, 12:11 PM	#2
Freakazoid Captain 188 Rep 962 Posts Drives: Saturn Redline Join Date: Dec 2009 Location: Pittsburgh iTrader: (0)	what's your company?
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05-19-2011, 12:40 PM	#3
Tondtar 12 yr old Juvie 1137 Rep 881 Posts Drives: His Mom Crazy Join Date: Apr 2008 Location: El Lay iTrader: (2) Garage List 2008 (RIP in 2011) ... [0.00]	I think you can pretty much classify any auto parts you pay for and get an invoice showing the $$$ amount as "auto service/ maintenance" on your taxes .....Until you get audited.
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05-19-2011, 12:43 PM	#4
328skidpad Lieutenant 55 Rep 495 Posts Drives: 328xi e350 Z4M X3 M40 Join Date: Jun 2005 Location: Princeton NJ iTrader: (0)	IT Consulting Firm specific to Fortune 500 companies. I understand that you can invoice anything but obviously dont want any red flags... obvious ethical expenses tires oil filters
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05-19-2011, 02:47 PM	#7
Tondtar 12 yr old Juvie 1137 Rep 881 Posts Drives: His Mom Crazy Join Date: Apr 2008 Location: El Lay iTrader: (2) Garage List 2008 (RIP in 2011) ... [0.00]	Damn right ...From an ethical standpoint, even if I fart in my car and have to roll the window down to get rid of it, I can charge a healthy consulting fee for the time I spend doing so ...Hey, you can't drive when the window is all fogged up so it is a "keeping the car in running condition" expense in my books
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05-20-2011, 12:50 AM	#9
KGB7 Crazy Russian Bastard 30 Rep 819 Posts Drives: 01 740i sport Join Date: Apr 2011 Location: Siberian Prison iTrader: (0)	I would get a written authorization from your employer first, stating that you can modifie the car. Last thing you want, is losing a job because you installed springs or aftermarket air filter. __________________ B M W
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05-20-2011, 02:50 PM	#10
Kroy Brigadier General 177 Rep 3,032 Posts Drives: E90 Join Date: Jul 2009 Location: Los Angeles, CA iTrader: (1)	OP sounds like the business owner
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05-21-2011, 08:27 AM	#11
Gregxi First Lieutenant 70 Rep 338 Posts Drives: 2014 535xi Join Date: Feb 2011 Location: MD iTrader: (0)	If you own the business, then it is no problem. Vehicle maintenance is not a red flag unless you start spending 10's of thousands on one car. With receipts your fine. First you have to get audited, Have you been audited before? One line item increase on your tax return should not raise any eyebrows. If you are not the owner of the business, that is the ethical part. I would terminate your employment if you tried to expense that.
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