Vehicles and Equipment

Tips for New Car Buying

2018 auto sales are slightly below last year’s figure and even further below the all-time record in 2016. Demand isn’t quite as strong as it was a few years ago when people who had put off car buying because of the Great Recession finally got back in because their old cars were falling apart. Sales […]

Buying a Heavy SUV in Your Last Years of Practice

Maybe it’s time for a new car.  And, maybe you’re considering selling your practice and retiring in the near future.  As you now know, one of the big changes in the 2017 tax act is full immediate deductions for new equipment purchases.  Heavy sport utility vehicles, those with gross vehicle weight ratings over 6,000 pounds, […]


This Newsletter continues the discussion of Tax Reform’s changes to businesses and will primarily cover the phenomenal new depreciation rules.  Perhaps the single biggest change in the entire Tax Cuts and Jobs Act is the move to 100% first-year depreciation for most business assets.  But, this isn’t all.  The new law makes major changes to […]

How to Be Sure That Your Automobile Insurance Covers Both You and Your Practice Entity

Let’s say that you practice through a corporation that owns your car.  If there is an accident, you want to be sure that the corporation can get reimbursed for the property damage and that both you and the corporation are insured if you are sued.  If you are sued, the corporation will also be sued […]

Comprehensive Year-End Tax Planning – 2017

Tax changes are coming.  The individual and corporate tax rates are expected to fall.  The marriage penalty, which taxes working spouses more than if they remain single, should go away.  The standard deduction should grow substantially.  Certain deductions will be eliminated (e.g., state and local taxes and medical expenses).  Hopefully, the alternative minimum tax (AMT) […]

Auto Insurance and New Child Drivers

The goal here is to make sure that both the parents and the child are covered — and doing it in a way that saves money. You will get better rates by keeping the vehicle titles in the parents’ names rather than in the child’s name. The insurance company will want to know who all […]

Auto Sales are Down, Making this a Good Time to Negotiate the Purchase of a New Car

New car sales are finally declining following seven years of growth.  2018 car sales are expected to contract further.  Dealer lots are bloated with 20% more supply than normal, and manufacturers are scaling back production.   In order to move this inventory, manufacturers are offering discounts and incentives that average $3,550 which is up 10% compared […]

Claiming 100% Business Driving is Aggressive but Can Sometimes be Justified

The IRS Revenue Ruling 99-7 says that if a taxpayer drives between between his legitimate home office to his traditional office location, then this is deductible business driving, not non-deductible personal commuting.  This can be the basis for claiming that 100% of your driving is for business thus making 100% of your automobile expenses are […]

Deadline for Claiming Practice Reimbursements for Personally Paid Business Expenses

The IRS uses a “safe harbor” rule that properly substantiated employee-paid expenses are reimbursable by the practice within 60 days after the expense was incurred.  This is merely a safe harbor for what the IRS considers timely.  It’s not a hard and fast rule.  We would not let the small IRS risk (where the tax-free […]

Auto Leasing

We continue to field questions on whether we have eased our distaste for car leasing.  No.  We realize the manufacturers are heavily promoting their lease programs and some claim to have improved the terms.  Perhaps, but this doesn’t get around the fact that the lessor is stuck paying the heavy depreciation that always occurs during […]

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