> I was wondering if many do this, and if there are some
> suggestions on how to
> structure something like this? I can see some major car
> expenses coming my
> way, but to alleviate the burden if I don't quit my day job
> as a slacker,
> heh, then maybe I can run some side business as a distributer
> of some one off
> part or service (that would sell itself) to make what I would
> normally spend
> on the car less come each year end?
Other people have wisely pointed out that this isn't really a new idea,
and the IRS is plenty used to it and will probably laugh at you if
you're not reasonable about it.
That said, one strategy that might work -- I'm not a lawyer, CPA, or tax
expert -- would be to approach your employer about taking a reduced
salary in return for the company advertising on your autox car. Since
each $1 in salary costs the company between $1 and $2, and since
advertising can be written off, this may be a mutually beneficial
arrangement.
Of course, to be viable, the company would have to have a reasonable
expectation of getting some return from that advertising (I'd expect the
IRS to be skeptical if "Environmental Electric Scooters" was sponsoring
a car). Also, I'm sure it would be unreasonable to reduce a $90K/year
salary to $15K/year and take $75K in "advertising." But if the amounts
were reasonable, it seems to me that it might work out.
It's just a thought -- not something I'm doing or advocate doing.
Of course, the real answer here is to talk to a knowledgeable CPA-type
who can give you real professional advice about how to do this properly.
Email me off-list if you'd like a recommendation for an accountant who
I've found to be creative-within-the-rules.
Cheers
-Brooks
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