takotsubo

...
10+ Year Member
Mar 20, 2007
44
0
Washington
Status
Resident [Any Field]
Just learned about the loophole from a colleague. I'm an independent contractor.

Can someone explain this loophole to me. Has anyone taken advantage of this and are there are tidbits or exceptions I need to know about. Pros and cons about it?
 

ThoracicGuy

5+ Year Member
Jun 11, 2013
10,254
25,361
Status
Attending Physician
Just learned about the loophole from a colleague. I'm an independent contractor.

Can someone explain this loophole to me. Has anyone taken advantage of this and are there are tidbits or exceptions I need to know about. Pros and cons about it?
Will you be using the vehicle solely for your job and for minimal to no personal use?

This sounds like a good way to get alot of paperwork and risks of an audit.
 

keifernny2

5+ Year Member
Aug 26, 2013
265
167
Status
Attending Physician
It's not quite that dire, but it really does depend on what you're using the vehicle for (business vs. personal use). This determination is based on Mileage (which you'll need to keep track of).

Option 2 is for your business to lease the vehicle, which is a bit less complicated though still has some paperwork involved.

If you have an accountant, this is a good question to ask them.
 
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