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Good Morning Group,
I have a scenario that I could use an opinion. A car that is used 100% for business, does it make sense to sell the vehicle to the company, simply for the purposes of increasing business assets?
Or since the company is a Sole-Proprietorship, is it just best to deduct the vehicle properly, according to IRS tax law, based on percentage of business use, and not fuss with the title transfer, etc.
Best Regards,
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No, it makes no sense at all.
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There is no separate entity for selling it to/from. That's the point of Sole Proprietorship = you are your own business. You are not changing any assets; they already have the vehicle and use it for business.
There is no name that is different for purposes of title. There is, however, a need to confirm adequate insurance is in place, because a homeowner policy won't cover a business event.
Don't yell at us; we're volunteers
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Thank you. With no legal separation, it makes sense for there not to be any additional benefit.
