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Good Morning Group,
I have a scenario that I could use an opinion. A car that is used 100% for business, does it make sense to sell the vehicle to the company, simply for the purposes of increasing business assets?
Or since the company is a Sole-Proprietorship, is it just best to deduct the vehicle properly, according to IRS tax law, based on percentage of business use, and not fuss with the title transfer, etc.
Best Regards,
Solved! Go to Solution.
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No, it makes no sense at all.
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There is no separate entity for selling it to/from. That's the point of Sole Proprietorship = you are your own business. You are not changing any assets; they already have the vehicle and use it for business.
There is no name that is different for purposes of title. There is, however, a need to confirm adequate insurance is in place, because a homeowner policy won't cover a business event.
"Level Up" is a gaming function, not a real life function.
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Thank you. With no legal separation, it makes sense for there not to be any additional benefit.
