The IRS has a nice euphemism for a car wreck…
They call it an “involuntary conversion.”
Of course, no one wants to lose their business vehicle in any kind of crash, wreck, or conversion. But if you ever do (and we hope you don’t!), you should at least get all the tax benefits coming to you.
You’ll find out how to get them when you read my new article titled Tax Tips: Ouch! Vehicle Totaled! Tax Benefits to Know!
Three ways our fact-filled article can help you:
- You’ll learn what to do if you’re operating as a proprietorship. There are three things you really need to know to maximize your tax benefits. We’ll list them (and explain them in simple terms) when you read the full article.
- We’ll tell you what to do if a corporation owns your vehicle. If you use the vehicle for both business and personal purposes, the corporation assigns a value to your personal use. That dollar amount either goes on your W-2 or is reimbursed to the corporation. And that’s just for starters. You’ll get all the facts when you read the full article.
- You’ll learn how to defer any gain on your tax return. To defer gain, attach a statement to your personal Form 1040 (or to your corporate tax return) that discloses seven facts required by the IRS. We’ll tell you what they are when you read the full article.