2021 Conquest RV - Tax Treatment?

dude7707 · ‎01-23-2023

C Corp purchased 2021 Conquest RV for $67k.

Tax Period: 12.1.20 - 11.30.21

1. Form 4562 - therefore need to answer following q's.

a. Available for personal use during off-duty hours

b. Used primarily by >5% owner or related persons

c. Another vehicle available for personal use.

d. Total miles during the year:

1. Commuting miles

2. Business miles

3. Other personal miles

2. Tax Depreciation method - MACRS - 5 years. - Report on 2020 1120.

Would these q's and tax method and est life be correct?

qbteachmt · ‎01-24-2023

Towable trailer or Motorhome (class A, B, C)? Is someone commuting with an RV? Is it used as a site office?

"Would these q's and tax method and est life be correct?"

Not enough details, including use pattern.

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dude7707 · ‎01-25-2023

Towable trailer or Motorhome (class A, B, C)? - Where do I find reference to which class? Not a Towable trailer.

Is it used as a site office? - To follow up with client.

All of these great Q's - will follow up once have answers.

qbteachmt · ‎01-25-2023

There is a nice graphic here:

https://www.tripsavvy.com/types-of-motorhomes-2912600

Basically, you have to determine the business use, reason for the vehicle, or it is treated as real estate. Examples:

Site Office (construction site, sales on site, etc)

Air BnB (rental income)

Drive it to rallies as a vendor

Used for personal camping (primary residence, second home) and if personal use, was it taxed as a fringe benefit?

https://www.irs.gov/taxtopics/tc415

Rental Property / Personal Use

You're considered to use a dwelling unit as a residence if you use it for personal purposes during the tax year for a number of days that's more than the greater of: 14 days, or. 10% of the total days you rent it to others at a fair rental price.

That's why %s matter

If mixed use, then mileage matters.

Everything matters. It's not unusual to have a taxpayer who believes putting it in the name of the company turns it into a business asset. There is a story on the web for an RV registered under a business name, and reported on business taxes, which voided the warranty.

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dude7707 · ‎01-25-2023

Thank you for the updated info, will pass this onto to the tax accountant in charge!

dude7707 · ‎01-30-2023

Follow up answers:

Motorhome (class A, B, C)? - .C

Is it used as a site office? - To follow up with client.- Yes to be used on one of the properties, no personal use.

dude7707 · ‎02-10-2023

Follow up responses:

1. RV is being strictly used to be parked at the construction sites where he is

developing property for a rental – do these vehicle questions get answered?

2. Report as Auto?

One CPA's recommendation:

1. Treat as 10yr Life, 200% DB and do not answer vehicle Q's.

2. No, use "Z" - Other (Refering to ProSeries Pro - 2020 Federal Asset Entry worksheet)

qbteachmt · ‎02-12-2023

Now it matters if it is or is not hooked up to services (even if temporary) = acting as a building. If anyone stays in it overnight (even only occasionally) = acting as lodging. Driven once in a while or never moved.

Try this:

https://www.irs.gov/pub/irs-pdf/p946.pdf

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