Tax break for fixing our 240s? - Zilvia.net Forums | Nissan 240SX (Silvia) and Z (Fairlady) Car Forum

chato de shamrock · 05-30-2010, 11:09 PM

Any of you guys out there have some knowledge on taxes?

My boss handed out 1099s this past tax season instead of the regular W2s. The city caught on and I was forced to file business taxes cause i fall under the description of working for myself, or independent worker/contractor. Because of this I can report certain expenses such as gas and my lunch food as a business expense and get some sort of tax break on next years tax season. At this moment, and likely for the remainder of this year, I'm going to daily drive my 240. I had plans to do some work on the car. Just last month I bought some coilovers and plan to make a few other expenses (RUCAs, tension & traction rods, wheels, etc) later this year. Anyone know if coilovers, wheels, tires, toes, RUCAs, etc. purchases would fall under the category of business expenses since i'm using my 240 in my work? OR would only certain things qualify such as wheels and tires since they might be a part of maintenance to the car?

By the way, I'm from So. California. I'm not sure if things vary by city and/or state.

NismOkatFreaK · 05-30-2010, 11:16 PM

Be careful with a 1099's man, you will have to pay a certain amount at the end of the year.

!Zar! · 05-31-2010, 01:06 AM

How would upgrades be a business expense?

DataXUnknown · 05-31-2010, 01:09 AM

I only think OEM replacements would be considered if anything..

chato de shamrock · 05-31-2010, 07:27 AM

Ya i'm extra careful with the 1099s. I make sure Uncle Sam is the one writing checks come tax time.

Zar, ya to many of us on here SPL, Stance, PBM and even Isis and Megan would be considered upgrades, but what constitutes as an upgrade to the govt? Is it anything thats not OEM regardless of it being some baller brand or some ebay cheap-oh? If thats the case then DataX's is on the right track with his comment. Can anyone confirm or correct us?

!Zar! · 05-31-2010, 11:11 AM

You can write off milage or you can create a detailed diary of the expenses. Choose one.

And if all you have are receipts that shows upgrades and the IRS audits you, then you are going to be in a world of explaining.

You can't really write mods off unless it is business related. Say you are some sort of park security in the woods, it would probably be be required to have a winch/skid guard.

I would suggest to just save up your money, because what you want to do is essentially illegal.

Sterlz · 05-31-2010, 11:31 AM

I agree with Zar. It IS illegal and you can probably only get away with recording the mileage. But even that they might not acknowledge

JDMSTYLE · 05-31-2010, 03:10 PM

yea i would save the money and hassle. this is why most businesses lease cars to drive.

drift freaq · 05-31-2010, 03:41 PM

you can only do mileage and or upgrades if you actually use the car for business. I.E. actual sales calls and whatnot. Traveling to work and from work does not technically count. Oh and mileage deductions really suck balls these days. Unless you drive an insane amount the general deduction you are allowed usually beats out a mileage deduction.

Oh and if you really make money and want to show you really make money? So that you are eligible to buy houses and whatnot? Then you will wind up paying the IRS when it comes to 1099's. You really can't get around it. The only way you don't pay is to show a loss or pretty much break even on paper.
It's sucks but its true, welcome to the world of self employee d and independent contractors.

TougeLove · 05-31-2010, 09:16 PM

i would ask a tax person and not a bunch peeps on the interwebz.

you may be able to get away with the parts as long as you dont spend too much money. audits usually only create red flags after a certain dollar amount.

chato de shamrock · 05-31-2010, 09:41 PM

Thanks for the input fellas. That pretty much settles this issue.

Gnnr · 05-31-2010, 11:19 PM

g6civcx · 05-31-2010, 11:47 PM

Quote:

Originally Posted by TougeLove

audits usually only create red flags after a certain dollar amount.

What you said is only true pre-2001. Before 2002, tax filings were digitized but the digital image was checked by a person. The person would red flag certain items of interest for auditing.

After 2002 the IRS started using software to check tax filings. Every discrepancy is marked with a red flag.

The difference is now that they have everything flagged, they don't have enough manpower to audit everything so they only audit certain items of interest.

So they went from flag-and-audit to flag-everything-maybe-audit-later.

charat · 06-08-2010, 12:37 AM

is your 240 written down as "a work vehicle"? if not, then no. its your car that use happen to drive while working. its not a car for work.

h2v7 · 06-08-2010, 10:18 AM

well first off this is the wrong forum to ask this question.

it may depend on what state your in too.

but i in face have writted off almoast a whole motorcycle and repairs for my in home computer service.

so i see no reason why 240sx would not work.

but i did have receipts of all my monthly payments for my work vehicle( 2002 triumph TT600)

05-30-2010, 11:09 PM	#1
chato de shamrock Zilvia Junkie Join Date: Feb 2009 Location: L.A. Posts: 329 Trader Rating: (1) Feedback Score: 1 reviews	Tax break for fixing our 240s? Any of you guys out there have some knowledge on taxes? My boss handed out 1099s this past tax season instead of the regular W2s. The city caught on and I was forced to file business taxes cause i fall under the description of working for myself, or independent worker/contractor. Because of this I can report certain expenses such as gas and my lunch food as a business expense and get some sort of tax break on next years tax season. At this moment, and likely for the remainder of this year, I'm going to daily drive my 240. I had plans to do some work on the car. Just last month I bought some coilovers and plan to make a few other expenses (RUCAs, tension & traction rods, wheels, etc) later this year. Anyone know if coilovers, wheels, tires, toes, RUCAs, etc. purchases would fall under the category of business expenses since i'm using my 240 in my work? OR would only certain things qualify such as wheels and tires since they might be a part of maintenance to the car? By the way, I'm from So. California. I'm not sure if things vary by city and/or state.

05-30-2010, 11:16 PM	#2
NismOkatFreaK Leaky Injector Join Date: Dec 2008 Location: O.C. Age: 37 Posts: 82 Trader Rating: (7) Feedback Score: 7 reviews	Be careful with a 1099's man, you will have to pay a certain amount at the end of the year. __________________

05-31-2010, 01:06 AM	#3
!Zar! Post Whore! Join Date: Nov 2004 Location: North Korea Posts: 14,579 Trader Rating: (27) Feedback Score: 27 reviews	How would upgrades be a business expense? __________________

05-31-2010, 11:11 AM	#6
!Zar! Post Whore! Join Date: Nov 2004 Location: North Korea Posts: 14,579 Trader Rating: (27) Feedback Score: 27 reviews	You can write off milage or you can create a detailed diary of the expenses. Choose one. And if all you have are receipts that shows upgrades and the IRS audits you, then you are going to be in a world of explaining. You can't really write mods off unless it is business related. Say you are some sort of park security in the woods, it would probably be be required to have a winch/skid guard. I would suggest to just save up your money, because what you want to do is essentially illegal. __________________

05-31-2010, 03:41 PM	#9
drift freaq R.I.P. Aya, always love Join Date: Nov 2001 Location: Los Feliz/Hollywood Posts: 18,562 Trader Rating: (215) Rides Gallery: drift freaq Feedback Score: 215 reviews	you can only do mileage and or upgrades if you actually use the car for business. I.E. actual sales calls and whatnot. Traveling to work and from work does not technically count. Oh and mileage deductions really suck balls these days. Unless you drive an insane amount the general deduction you are allowed usually beats out a mileage deduction. Oh and if you really make money and want to show you really make money? So that you are eligible to buy houses and whatnot? Then you will wind up paying the IRS when it comes to 1099's. You really can't get around it. The only way you don't pay is to show a loss or pretty much break even on paper. It's sucks but its true, welcome to the world of self employee d and independent contractors. __________________ "Having a lot of tracks on a song is like putting stickers on a car to get more horsepower" New Video https://www.youtube.com/watch?v=uebV1OnbRsw Buy my mounts! http://zilvia.net/f/sale-items/51531...ns-mounts.html http://zilvia.net/f/tech-talk/317539...e-mouts-6.html

05-31-2010, 01:09 AM	#4
DataXUnknown Post Whore! Join Date: Sep 2006 Location: Mission Viejo, CA Age: 34 Posts: 2,934 Trader Rating: (30) Rides Gallery: DataXUnknown Feedback Score: 30 reviews	I only think OEM replacements would be considered if anything..

05-31-2010, 07:27 AM	#5
chato de shamrock Zilvia Junkie Join Date: Feb 2009 Location: L.A. Posts: 329 Trader Rating: (1) Feedback Score: 1 reviews	Ya i'm extra careful with the 1099s. I make sure Uncle Sam is the one writing checks come tax time. Zar, ya to many of us on here SPL, Stance, PBM and even Isis and Megan would be considered upgrades, but what constitutes as an upgrade to the govt? Is it anything thats not OEM regardless of it being some baller brand or some ebay cheap-oh? If thats the case then DataX's is on the right track with his comment. Can anyone confirm or correct us?

05-31-2010, 11:31 AM	#7
Sterlz Zilvia Member Join Date: Nov 2009 Location: the land where everybody gets it all wrong Posts: 172 Trader Rating: (1) Feedback Score: 1 reviews	I agree with Zar. It IS illegal and you can probably only get away with recording the mileage. But even that they might not acknowledge

05-31-2010, 03:10 PM	#8
JDMSTYLE Zilvia Member Join Date: May 2008 Location: hawaii Posts: 194 Trader Rating: (2) Feedback Score: 2 reviews	yea i would save the money and hassle. this is why most businesses lease cars to drive.

05-31-2010, 09:16 PM	#10
TougeLove Zilvia Addict Join Date: Nov 2009 Location: so cal Age: 40 Posts: 846 Trader Rating: (5) Feedback Score: 5 reviews	i would ask a tax person and not a bunch peeps on the interwebz. you may be able to get away with the parts as long as you dont spend too much money. audits usually only create red flags after a certain dollar amount.

05-31-2010, 09:41 PM	#11
chato de shamrock Zilvia Junkie Join Date: Feb 2009 Location: L.A. Posts: 329 Trader Rating: (1) Feedback Score: 1 reviews	Thanks for the input fellas. That pretty much settles this issue.

05-31-2010, 11:19 PM	#12
Gnnr Post Whore! Join Date: Apr 2005 Location: S. FL Posts: 3,960 Trader Rating: (0) Feedback Score: 0 reviews	__________________

06-08-2010, 12:37 AM	#14
charat Join Date: Mar 2010 Location: california Posts: 7 Trader Rating: (0) Feedback Score: 0 reviews	is your 240 written down as "a work vehicle"? if not, then no. its your car that use happen to drive while working. its not a car for work.

06-08-2010, 10:18 AM	#15
h2v7 Nissanaholic! Join Date: Apr 2010 Location: san francisco, ohio Posts: 2,194 Trader Rating: (3) Feedback Score: 3 reviews	well first off this is the wrong forum to ask this question. it may depend on what state your in too. but i in face have writted off almoast a whole motorcycle and repairs for my in home computer service. so i see no reason why 240sx would not work. but i did have receipts of all my monthly payments for my work vehicle( 2002 triumph TT600)