My son bought my wife a used car. They went to the dealer and bought the car. It was sold to my wife with our son supplying the money. The amount was under $10000. So the car was purchased by my wife using money gifted to her by our son.
She uses the car for business. She has a sole proprietorship.We use mileage deduction on the vehicles used for business. Are there any issues we need to be aware of for filing taxes 2017?
Thank you
sj
business use of a gift
Re: business use of a gift
The gift was under $14K, so no gift tax reporting required.
It's her car. She uses it for her business. I cannot see why there would be an issue about deducting the mileage on her schedule C.
You said "we are using the mileage deduction". I assume that is OP and his wife filing jointly.
Seems so simple I'm afraid I am missing something. But OK, always better to check.
It's her car. She uses it for her business. I cannot see why there would be an issue about deducting the mileage on her schedule C.
You said "we are using the mileage deduction". I assume that is OP and his wife filing jointly.
Seems so simple I'm afraid I am missing something. But OK, always better to check.
Re: business use of a gift
You confirm my thoughts, thank you. Yes, it is a sole proprietor but since we are in Washington (community property state) we can both be in the business without going to a partnership. So we are co-owners filing a schedule C. The only vehicle we deduct actual expenses on is a crane truck. The other vehicles it is more advantageous to use mileage. I knew about the gift tax limits, I just wasn't sure how that worked if the gift was used to purchase items used in the business.
back story, our son is well off and wants to convert everyone to electric vehicles, so he bought my wife a used Leaf. Has been great as it gives us two trips to town between charges. Find ourselves using the gas powered car less and less, just for longer trips mostly.
essmjay
back story, our son is well off and wants to convert everyone to electric vehicles, so he bought my wife a used Leaf. Has been great as it gives us two trips to town between charges. Find ourselves using the gas powered car less and less, just for longer trips mostly.
essmjay