Can You Deduct Exotic Cars On Your Taxes?

[@NguyenCPAs]

Which car would you get if you could?

[@DanDoesGame]

What if you have a car youtube channel and buy the car to make videos on?

[@NguyenCPAs]

Is it a business? Or you just making videos? Your intent is important

[@DanDoesGame]

@@NguyenCPAs I mean yes, Id be buying the car to make videos on. The channels already monetized, i just need another project car to make videos, because I have done everything with the current car i started the channel with.

[@NguyenCPAs]

Ohh..and is the channel profitable after expenses of the project car?

[@DanDoesGame]

@@NguyenCPAs I have my other businesses that make money to be able to afford it, but it is an overall part of my "DAN DOES" brand. I have 5 different "Dan Does" channels, this gaming one, a car one, podcast one, car one & PC one. So the Dan Does Car doesnt make enough to afford the car, but my overall "Dan Does" personal brand does. The cars are investments to grow the car channel, my PC Business is what allows me to afford that.

[@Sickwitit18]

I might open up a car wash business on the side and ride the car off through that

[@frankchao6561]

Amazing information! Thank you so much!

[@NguyenCPAs]

Glad it was helpful!

[@Ragingradiator]

Hello, i have a question. What if you have a KZbin channel for super cars and make videos for super car content and ask people to email you for paid consultation and advice on ownership... thank you for all your advice, and it was really helpful.

[@gtcam723]

If Stradman, he basically makes super cars his business. So I would think that he could.

[@Sickwitit18]

If your business makes income from that car being in videos or if that car is ever featured in videos where you're earning income from those videos and I would think it's ok

[@erichasenpusch7096]

Question for you Mr. Nquyen. I'm in the Merchant Services Industry and work with business owners daily handling their credit card payments, ACH and POS systems. I'm self employed Networking is huge for me and many people who own $100k+ cars are business owners. Can deduct the cost of a new Porsche or BMW M3 so I can network at high end car meets, clubs and events to meet business owners that would be difficult to near impossible to meet with if I didn't own the car to bring to the events?

[@grisa12345]

Ordinary and necessary-is this defined in the tax code? It seems like if the vehicle is “exotic” (also not sure how exotic is defined), then it serves a purpose even more effectively for marketing. An exotic car gets more attention, which is the whole point of marketing right? Also, let’s start an exotic car rental company.

[@NguyenCPAs]

I would start an exotic car rental company with you, no questions asked.

[@NguyenCPAs]

Also, I know all the points you're making. But try convincing an IRS agent that makes no more than $50k per year that your Lambo is ordinary and necessary. Since "ordinary and necessary" is pretty subjective, it unfortunately can be left up to the agent and their manager to decide.

[@crazy3rdgen]

Just reserve to rent the car in your name any time you want to use it and pay the company. 🤔 maybe at a discount, is that a thing lol

[@petemosspov]

@@crazy3rdgenor rent to your personal network of friends

[@lukesample20]

@@NguyenCPAs doesn't matter it still has to hold up in appeals. do you have any specific cases you can point to where this was the case?

[@apextools474]

If you start a exotic car rental company can you write off the full amount even if the Lamborghini doesn’t weight 6000 pounds

[@jh0720]

but you can only write if off of the rental company's income, right?

[@kam5333]

what about a youtube channel dedicated to the vehicle?

[@jacstoneu]

I heard Manny Khoshbin deprecates 100% of his exotic cars through his youtube channel and being a car dealer license can you do a video on that

[@Hindsight46]

Yeah, would watch a video on this

[@jingchang7302]

Hi can you do retirement planning for NY residents? Thanks . Looking for a financial planner for fee .

[@frankchao6561]

Tesla model x for Turo rentals. Would that work? Doordash and uber?

[@davec2020]

Great video. I'm trying to buy a C8 Z06 in a LLC. Dealership says I can't purchase this vehicle on my business name?? I want to try and list it on Truro etc. Am I able to purchase this under llc? Any help or advice would be greatly appreciated. Thank you

[@Sickwitit18]

If you have an LLC that's purpose is renting cars on turo then I would think it works. But if your current LLC is not related to cars that I don't think that would work

[@gtcam723]

Point out any kids that had posters of a Prius on their bedroom wall. I’ll wait. Simple fact of the matter, a Prius does not get the same level of attention that a Lambo or Mclaren would. Also, I could see where it could be sort of part of someone’s brand.

[@lukesample20]

Agreed and a very important point. The IRS should not get to make business decisions for you. This is like comparing buying advertising on a billboard in some tiny town, vs buying a billboard in Times Square. Is the IRS going to be able to tell you that you shouldn't have made the business decision to purchase a billboard that is way more expensive to get more eyes on it? Because there are very specific rules about vehicles, the IRS will have a very difficult time justifying that stance. The field agent may try to disallow but I would imagine it would hold up fine in appeals.

[@webstartup]

Awesome video. What if the car is not under your business but you have an llc.

[@NguyenCPAs]

Mileage

[@cuzzpound]

I have a company we sell luxury items (pool tables) we have online sales as well. I don’t want to buy a 500 thousand dollar car I want to wrap a 60k corvette for advertising and car shows to advertise. A billboard is the same price monthly as the car that can be used as advertising. I’m looking for something to advertise my luxury product what about a car like that

[@TempleSundae]

Colorado in tha house!!!🤙🏽🔥

[@webstartup]

If the vehicle weighs more than 6000lbs then you can use section 179?

[@NguyenCPAs]

Technically yes. Should you? Maybe not

[@manifestmusic92]

subbed. cheers

[@frankchao6561]

How about a youtube or social media channel dedicated to everything tesla model x?

[@NguyenCPAs]

If you're making money on it. And I'm not talking about $3/month in ad revenue. That's BS. I'm also not talking about "Oh I'll make decent money on it in 5-7 years".

[@peTeMelster]

This is what I've been telling all those scam Instagram CPAs pretending their accounting firm can justify Lambos just because they serve high-end accounting clients, claiming it is a "necessary and ordinary" expense. Hell no, it's not necessary and ordinary even when doing accounting for high net worth/income clients.