Can you claim a personal golf cart as a major purchase?

[Vanessa · Accepted solution]

If you are asking if you can claim it to deduct the taxes paid on it as a major purchase, yes.

Otherwise, a personal golf cart purchase is not tax deductible. 

[Kendalls-Mom]

YES! That’s what I meant...the sales tax. THANK YOU!

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3148443-how-do-you-define-major-purchase-or-major-item-for-the-sal...>

[SweetieJean]

Major purchases include:

• A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle)
• An aircraft or boat
• A home or substantial addition to or major renovation of a home

[casirendl]

I have a Small Business. I use my golf cart  for my customers on my property. They can use it to get around the lake or around the 32 acres we have. How can I use the for a tax write off if it is considered a major appliance? Or can I? 

Can I sell my Golf Cart to my business? And if so how? And is it beneficial? 

[KrisD15]

It depends on the structure of your business. 

If it is a "Sole-Proprietorship" and you file Schedule C, you can convert it to business use. 

A Partner may also contribute property to a Partnership.

It could be beneficial in the aspect that (depending on the ratio of business use to personal use) the golf cart could be depreciated which would offset profit. There are other ramifications, such as possibly recapturing depreciation, but if you plan to use the golf cart until it falls apart, depreciation recapture would not be an issue. 

Click here for more information about Business Assets. 

[casirendl]

Thank you very much. That helped a lot. So my business is a sole propier converted to LLC. Now I was in the middle of changing all that when the year ended and gain an employer during that time. Would that still need to file a schedule C. As of right now trying to work with. A tax experts to get the best put come and with ADP Who handles my payroll. I have 1099s I am waiting for since I started my business in 22 but legally it didn't become formed until July 23. Now I believe we bought it for my husband in 20 or 21. So it definitely has depression on it. So I am thinking adding it to it would be a good avenue. Just we just fixed it up for customers also. Figured that would be a great selling point on our  rental properties.  If you have anymore advice. That I should know or be aware of that would be amazing to hear as well as appreciated. Thank again for the quick response. 

[casirendl]

So how would you write that óff . We had major up upgrade to our house do to an insurance claim is that the same. 

We also did major work on our cottage for our business. Getting everything to get her for inspections and spending this and that for materials supplies.  Can it be written off that way. Our car is used for 45 percent of the business.

[DianeW777]

It depends.  If you are a single member limited liability company (SMLLC) you would continue to file a Schedule C. SMLLCs are considered disregarded entities separate from their owners.  This is because the IRS expects the taxpayer to carry the income onto his or her personal tax return using the Schedule C for sole proprietors.  

When you convert an asset from personal use to business use it's important to note that you must use the lower of cost or fair market value (FMV) on the date of conversion, for your cost basis.  This cost basis is entered into the asset section with the date placed in service for business, add to the cost basis any expenses to improve it immediately before conversion.

1. Any upgrade to your personal residence will not be factored or included in your business Schedule C. 
2. The cottage, and cost of improvements in 2023 to the cottage, if used for business can be depreciated.  The way the cottage is depreciated depends on whether it is a residential rental cottage or a nonresidential building used for your business activity as an office or storage of business items.  
3. You would make the following selection for depreciation method depending on the note above.
   • Residential Real Property is 27.5 years
   • Nonresidential Real Property is 39 years  
     • Depreciation of Business Assets

Business Use of Car Information:  As a person who is self-employed this can be deducted under Vehicle expenses on the business activity (Schedule C).  The business use percentage is always determined by business miles divided by total miles for the year or portion of the year the vehicle was placed in service for business.  The steps to enter are shown below.

For self-employment purposes follow these steps to enter your vehicle for your business.

1. Down the left side, click Federal.
2. Click on Wages & Income.
3. Under Your income, click on Edit/Add next to Self-employment income.
4. Click on Edit next to the business name.
5. To the right of the vehicle expenses, click Add or Review.
6. Under Vehicle Summary, click Edit to edit the entries.  Click Delete to delete the entries

@casirendl 

[casirendl]

Thank you very much. Very helpful indeed. Well it's actually more complicated than that I think or * am making it complicated. We use a separate room in our house whiich is residential for the office space which about 400 square ft(office) out of the house total of 3000 square ft(house total squ ft). and the house sits on residential and agricultural. It's still pending rezoning. Due to COVID and inspections delaying it.  But the cottage sits on the residential side now. But it is used as a business for rentals. And We have timeshare rentals we rent out. I hope that makes sense. Last year it was Myrtle Beach and we paid on the taxes, mortgage, and maintenance fees for it. Plus rented it out. We have them all over the united states and over seas. Trying to learn how I can do that with house my business intitey is now. I am looking for a tax consultant. On how to restructure my business. I appreciate all the advice and help  everyone has given and gives. Thank you.