Legal Question in Business Law in Florida

Re: Sub Chapter S Corp Question

This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

This is more than a simple question and should involve your attorney as well as your accountant. If you intend to write off the truck payments, then you may expose your business to any injuries/damages you or your permissive drivers cause in the event of a motor vehicle accident. Further, it will require you obtain a commercial auto policy which will cost substantially more than a personal policy. If this is a personal vehicle, is it generally best NOT to have it part of the corporation. Consult an attorney and match up your specific facts of your use of the vehicle.

Re: Sub Chapter S Corp Question

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

You should meet with your attorney or accountant and discuss the issue. You will be able to deduct a percentage of the cost of the vehicle and its operational expenses that is used for business as opposed to personal use. If you claim too much, you could get audited and be charged a penalty.

Scott R. Jay, Esq.