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View Full Version : Writing off your own limo expenses?



September 13th, 2002, 04:56 AM
If you own multiple businesses and one is a limo business can you legitimately have yourself driven in your own limo, bill it to one of your other business and then write off the expense through the second business?

Assume for this example that I sell my own personal vehicle and buy a sedan as a replacement. Therefor I am not using a sedan that would otherwise go to a paying customer.

The only issue I am not sure how you would get around is the IRS rules about not being able to write off transportation expenses driving to/from the office.

September 13th, 2002, 05:14 AM
I don't see the problem in this however I am not an accountant or tax person. Maybe I am not understanding your question.

I also think that if you had two offices; one at your home and another at another location you can write-off the expenses to and from those locations. If your home had no office and you conduct no business, then you can't do it.

The above is opinion not advice and should not be construed otherwise. http://limos.infopop.cc/groupee_common/emoticons/icon_wink.gif

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September 13th, 2002, 06:21 AM
We have a autobody repair shop, a recycling center and a catering company. All are run as completely separate entities. The recylcing center does a promotion with schools to encourage recycling. Briefly, classes collect aluminum cans all year and the bags by room number. At the end of the year, the top three classes earn a pizza party by limo. The recycling center hires the limo company to do the job and writes it off as a business expense. However, the limo company must report it as income so it appears to be a wash in the global picture. However, on the body shop side, we give comp rides home or pickups on occassion and the body shop pays nothing but the limo company writes it off as a promotional expense because these passengers could become clients of the limo company by the exposure to the limo ride (and the marketing materials bestowed upon them during the ride).

September 13th, 2002, 11:59 AM
...about how to get around giving comp rides to customers of one of my businesses when we have a minimum hourly rate rule in our city. Although I should be able to advertise it as a 'free limo ride' for a paying customer at my second business, I guess it wouldn't technically be considered free (as far as the city is concerned)if my other business is paying for it as a marketing expense.

September 13th, 2002, 05:20 PM
there must be a way. Did you get a copy of the ordinance? Despite the chaos evoked by my last request for a copy of it, I truly would like to see it. If nothing else to understand how it works in case my own city should ever try to implement it. One thing is for sure, laws that get on the books are generally created as a reaction to an action. Many however become misaligned in the process of trying to do the "right" thing. When you do have it, please fax it to me. I do plan to forward it to the NLA which does have an interest in all laws and regulations which affect our industry. They HAVE been successful in assisting both individual companies as well as state associations in working with local government officials. I am not promising anything or any action because it isn't my place to do this. But what could it hurt to let them look at it?