How to Protect Your Turo Car Rental Business

While Congress is busy planning changes before the end of the year, such as taxing unrealized gains for the wealthy, Toby Mathis and Jeff Webb of Anderson Advisors talk about how to protect your Turo car rental business and other tax topics. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics: 

• If I invest in a Turo car sharing business, should I put the vehicle inside the business (cleanest) or own individually and let the business use it every weekend? If the business owns it, am I restricted from using the vehicle for personal use, or might it be covered by the 14-day rule? Keep track of the mileage because a Turo business is the rental of personal property where you lease out a vehicle you own to other people unrelated to you - it’s like Airbnb for cars
• During the pandemic, I have been using our boat as well as our house as an office. Would I be able to claim the time on the boat as a legitimate business expense? You are only allowed to have one admin office, and the boat does not meet the exclusive use test
• What is the difference between “Admin Office” and “Home Office” deduction? Home Office is reported on Schedule C, but the Admin Office follows different rules - for your business but not owned by your business
• I want to employ my daughter to help with my business, where do I start? I have an LLC, but do I need it to be an S Corp? No, any entity including a sole proprietorship can have a payroll 

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Resources:

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