@jabbajr101 wrote:
The vehicle is used on the Turo platform, which is a car sharing company. I would use it sometimes for personal, but most of the time it will remain on the Turo platform to be rented out. I have a partnership LLC. I act as a member to the company.
I can't speak to every combination of factors, but one thing is that if you take the car out of service for the LLC before the normal depreciation period is over (5 years I think) you will have to pay back the unearned portion of the section 179 depreciation. If you are a single member LLC that just means moving money from one pocket to the other, but if you have a partnership, the partner may be disadvantaged. You would then have to get reimbursement from the partnership for business use of your personal vehicle for specific rentals.
If you want to use a "company car" for personal use, there is a way for that to be treated as part of your taxable compensation, or you pay the company for personal use.
The two easiest arrangements to explain are
a. the business owns the car and only uses it for business purposes.
b. you own the car personally and the business reimburses you only for business use. But because the business currently owns the car and took section 179, the business will take a hit if you transfer it back to personal use.
You may want professional accounting advice, especially if you are going to be mixing business and personal use, where you own the car but other partners have an interest in how the finances are managed.
