Thread: Insurance help!
View Single Post
  #12  
Old 01-29-2014, 11:45 PM
unkownfl's Avatar
unkownfl unkownfl is offline
LawnSite Gold Member
 
Join Date: Mar 2009
Location: Orlando/Windermere
Posts: 3,795
Ok, you can use personal vehicles for business no problem. Pizza hut does it every day etc etc...
Make sure your personal auto policy is notified that you use the vehicle for business use. You do not need commercial auto policy usually depending on the company. State Farm FL does not require business use for vehicles under 10k GVW and used less than 50%. If you're really worried about liability coming after your mom, have her get an Umbrella insurance policy. Usually the coverage is around 1 mil in coverage but I would only suggest that if she has something to come after. A mom strapped in debt making 30k a year is not going to be what lawyers come after as there is nothing to take. If she makes a little more than that they could garnish her wages for ever and yours too but this is only once all insurance policies have been exhausted.

Now for putting the truck in the business name, it will need to be paid in full and the state will have to allow a LLC to hold the title. If you're cosigning the loan personally to put it in the LLC it would be the same thing liability wise as owning it personally. I know your new formed LLC will not be able to get a bank loan for a duramax. You can't simply give it to your LLC your state will want tax on the transfer and it will need to be the honest value of the truck. Now the IRS is going to count this as a Draw or distribution depending on the LLC taxing structure and will be subjected to income tax.

Now tax wise you can take standard mileage in either situation which is $0.565 for 2013 per mile. Now keeping it in your LLC you may be able to save on taxes if you lease the truck to the LLC take depreciated value and cost of maintaining it I don't know what is best without numbers in my face and I'm not a CPA. You would then pay income tax on the lease payment it gets messy that way and at .565 a mile on a used vehicle is what I do. If you get 12mpg thats 6.78 per gallon with standard mileage and it doesn't cost me that much to operate.
__________________

Last edited by unkownfl; 01-29-2014 at 11:51 PM.
Reply With Quote
 
Page generated in 0.03226 seconds with 7 queries