I'd like to purchase a new vehicle for a new mobile business venture. We just sold our company this year, and just registered another LLC for a new venture. Taxable income for the new company this year will be $0
Our old company (LLC - S corp) will be reporting roughly $400k in taxable income. The sale of the company generated $2.9M which will all be long term capital gains i believe.
We also have W2 income of about $380k.
A vehicle for the new company is essential, and being over 6000lbs should qualify for a full year 1 deduction. The new company wont be very big, just something small to keep us occupied rather than a big money maker, so multi year depreciation probably wouldn't be the best.
My thinking is to use the large tax burden for this year as it will be our last of anywhere near this magnatude.
1) Even though the company is technically sold, could i register the vehicle in the old company name? ( thinking here is that the vehicle may need to be in the name of the company getting taxed)
2) If i register in the new company name, if that company earns $0, does that render section 179 unuseable?
3) If #2 applies, does our W2 income count for anything?
I realize now that i probably should have done this a couple of months ago while we still owned our last company, but this new one was a spur of the moment decision. I have 30 days to pull the trigger so just looking for answers from people in the know to help out as our CPA is out of reach until the new year.
Thanks!
