Tax Deduction for Classic/Antique Cars Used in Business

Do you have a classic or antique car that you use for business?

If you do, can you deduct it the same way you would deduct any car you use in business?

The short answer is “yes,” but you must meet two criteria imposed by the courts:

1. The car must be of a type that’s subject to “wear and tear, decay, decline, or exhaustion”
2. The car must be used in your trade or business

Of course, this short answer really needs elucidation, which is why I urge you to read my new article titled Tax Tips: Tax Deduction for Classic or Antique Cars Used in Business.

Here are seven key points we’ll discuss in detail.

1. The classic/antique car as a write-off. The courts’ rulings allow for no doubt or misinterpretation. Comply with the two requirements (mentioned above) and you’re good to go. For details, read the full article.
2. How the old law often disallowed classic cars. In 1981, lawmakers simplified depreciation deductions and removed the requirements of “salvage value” and “estimated useful life,” both of which could have prevented your write-off of an old car. For details, read the full article.
3. How the new law works to your benefit. You’ll learn what the courts decided in the Brian P. Liddle and Richard Simon cases. (The decisions are good for you!)For details, read the full article.
4. You’ll learn what the IRS wants to change. Uncle Sam would love to disallow the classic/antique car deduction but he’s facing some serious problems. For details, read the full article.
5. Why the term “recovery property” is important (and complicated). We’ll explain the tax law and relevant court cases.For details, read the full article.
6. How you’re shielded from IRS attacks. The Liddle and Simon court victories provide you with strong protections so you should be safe.For details, read the full article.
7. The classic/antique car “show me the money.” Thank the Tax Cuts and Jobs Act (TCJA) for making the money equation easy. Under the TCJA, you encounter no depreciation differences between a brand-new Lexus GS or an old GTO. (That’s because the TCJA uses the same depreciation schedule for both new and used cars.) For details, read the FREE article.