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Thursday, March 4, 2010

TITLE MATTERS: Who Owns the Car?

If your company is paying for a car, make sure you title the car in the company's name.  I the company makes the payment but the title is in your own name, the IRS may deny the business depreciation deduction.  Your company may also lose deductions for other auto expenses such as insurance, gas & maintenance.

If you are a sole proprietor this does not apply.  You and your business aren't separate entities.

Even if the car is in the company's name, if you use it for personal driving of any kind you still have to keep track of your mileage to determine what portion of the vehicles expenses will be deductible on your taxes.  Keep accurate records that can be physically presented if you are audited.

Take the first step with your vehicle title, as well as other business assets, or or you may have an uphill battle.

This material is for informational purposes only and not intended and financial, legal or tax advice. Please consult your finance, legal or tax professional to confirm the accuracy of all information.  

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