Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Sell Personal Vehicle to Sole Proprietorship

Level 1

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,

 

0 Cheers
1 Solution

Accepted Solutions
Level 13

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.

View solution in original post

3 Replies 3
Level 11

No, it makes no sense at all.

Level 13

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.

View solution in original post

Level 1

Thank you. With no legal separation, it makes sense for there not to be any additional benefit.

0 Cheers