3 results for tag: Business Vehicles


$75 Receipt Rule for Business Vehicles

The Question I was having a conversation with a tax preparer who says there is no such thing as a $75 rule for receipts on vehicle expenses. He claims that we need receipts for all car expenses. Then I began to ponder... isn't there a rule that states that we do not need receipts if the vehicle expense is less than $75? Answer Yes! The $75 rule is contained in IRS Regulation 1.274-5(c)(2)(iii), and the best explanation of what this rule says is found in IRS Notice 95-50,2 which states that the $75 rule applies to travel, entertainment, gifts, and listed property. IRC Section 280(f)(d)(4) states that “Listed Property” includes any ...

2018 Car and Truck Depreciation Limits

For this year's 2018 Depreciation Limits, business use vehicles offer opportunities and challenges. Claiming depreciation as a business expense for personally available vehicles is a clear advantage. As is common, a “but” is included due to special rules known as “Listed Property” attributes. These rules recognize there are both personal and business attributes associated with the same asset; the vehicle has a value to the individual and their business using the vehicle which has necessitated specific 2018 Car and Truck Depreciation Limits. The conceptual challenge is that there are differences between a business van say, for a “Cons...

2017 Car and Truck Depreciation Limits

  Business use vehicles have several challenges. Part of the challenge is that there are special rules known as “Listed Property” attributes that recognize there are both personal and business attributes associated with the same asset; the vehicle has a “Value” to the individual and their business using the vehicle. Thus the 2017 Car and Truck Depreciation Limits.   The “Conceptual Challenge: The differences of a “Business Van” say, for a “Construction Person” compared to the “Executive” with a new Mercedes. As a result, congress has limited the amount of depreciation of allowable as a deduction in instances that ...