Question
How do business owners get away with having their personal vehicles fall under company cars?
I've seen so many instances where business owners have their personal cars even the ones there children drive be categorized as company cars for work and they then can write off the depreciation value of the cars in order to not reduce the taxes they pay on income the business earns. How can this be legal?
1 month ago - 2 answers
Best Answer
Chosen by Asker
They must keep track of all business mileage, and figure percentage of business versus personal use on their tax forms. If their children are employed by the company, the same rules apply. If the children don't use the car for business, Uncle Sam will be watching.
by Mary P
1 month ago
Asker's Rating: 
Other Answers
"even the ones there children drive " "How can this be legal?" It isn't. Legally they are required to pick up the value of their personal use of the company car as income. However, unless the IRS audits the company, they will never know and the practice will just continue.
by Herrmann- 1 month ago