Possible to expense car payments as home based trader?

[qlai]

The subject of this topic.

There are three ways, that I know of:
Buy and depreciate
Write off mileage based
Write off lease.

For most however, in practice as a "home-based trader", there are not many instances where a vehicle is REQUIRED for the business operation.

If you have a corp, there’s good chance some money coming from other sources, so easy to justify imho. In the worst case, start a gum ball machine vending business.

 

[SunTrader]

There are three ways, that I know of:
Buy and depreciate
Write off mileage based
Write off lease.

Not sure why you are replying to me with above?

It's not how to write it off, whether it is even possible to.

As tiddywinks put it, if it is used to travel to client etc. Otherwise if someone, like me, has their azz planted in front of their desk trading everyday their own money, why would an auto be needed other than for personal use.

 

[tiddlywinks]

If you have a corp, there’s good chance some money coming from other sources, so easy to justify imho. In the worst case, start a gum ball machine vending business.

Best practices, according to professional accountants and attorneys versed with trading is to not comingle business types within a trading entity. Trading is specifically addressed (and targeted/singled out) in the tax code.

You might want to check those gumballs to make sure they are chewable.

 

[qlai]

Is there such thing as a “Trading Entity?” You don’t need to apply for trader status as a corp, afaik. Not arguing, just trying to understand.

 

[tiddlywinks]

Is there such thing as a “Trading Entity?” You don’t need to apply for trader status as a corp, afaik. Not arguing, just trying to understand.

If an entity does not qualify for TTS, the entity does not have access to TTS tax benefits, including MTM. Additionally, all entity types are not equal. For instance, a C-Corp gives up the 60/40 tax benefit of 1256 contracts, whether TTS or not. This shit is not easy to navigate CORRECTLY!! But a willy-nilly setup is still a path.

 

[turkeyneck]

Looks like it's a no go unless you need to meet with clients outside your home.

"Business deductions don’t include:
Vehicles. (Traders don’t use autos daily for business.)"

https://greentradertax.com/trader-tax-center/trader-tax-status/trading-business-expenses/

 

[qlai]

But a willy-nilly setup is still a path

The only way to get it right is to push boundaries lol

 

[qlai]

How about hosting a server in a data center within a driving distance?

Looks like it's a no go unless you need to meet with clients outside your home.

 

[newwurldmn]

The only way to get it right is to push boundaries lol

three issues

Getting an accountant to do your taxes with these games
Being okay with an audit
Being okay with the ethical and moral aspects

 

[bookish]

three issues

Getting an accountant to do your taxes with these games
Being okay with an audit
Being okay with the ethical and moral aspects

Getting an accountant to not rob you blind.