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