@AmeliesUncle wrote:
@jyeh74 wrote:
Person 2 says because the car is owned by the LLC, everything that they do is expensed 100% to the business.
Just to clarify, only the business percentage of expenses can be deducted. If the vehicle has ANY personal use, that personal-use portion is NOT deductible, regardless of how the vehicle is titled. And I suspect it is extremely rare that a vehicle would have 100% business use.
You're allowed de minimis personal use, I believe, especially if the vehicle is distinctive or not easily used for other purposes. For example, if you have a truck that has your business logo and that carries your tools and supplies, you won't lose the business deduction if you stop at the grocery store on the way home. But any substantial (non-minimal) personal use would have to be accounted for.
