Speaker: Jeremy Wells, EA
CE: 1 IRS/CTEC
Price: Free for Members | $60 Nonmembers

Business use of automobiles remains one of the most litigated and misunderstood areas of federal income taxation. Practitioners must navigate the interaction of ownership, personal use, depreciation limits, listed property rules, strict substantiation requirements, and fringe benefit valuation, all within a framework that has only grown more complex after TCJA.

This course provides a structured, practitioner-focused overview of the federal tax treatment of vehicles used in a trade or business. Using a three-axis framework—ownership, use, and business-use percentage over time—attendees will examine the tax consequences of (1) personal vehicles used for business, (2) business vehicles used for personal purposes, and (3) depreciation and recapture rules applicable to business vehicles. The session highlights common compliance failures, planning opportunities, and audit risks, equipping tax professionals to advise clients with greater clarity and precision.

Learning Objectives:

• Identify the statutory and regulatory provisions governing business use of automobiles, including substantiation requirements, depreciation limitations, and fringe benefit rules.
• Explain how vehicle ownership and patterns of personal and business use affect deductibility, income inclusion, and depreciation treatment.
• Apply the listed property and luxury automobile limitation rules to determine allowable deductions and depreciation for business vehicles.
• Analyze the tax consequences of changes in business-use percentage over time, including recapture of § 179 expense and adjustments under § 280F.
• Evaluate vehicle-use arrangements and reimbursement structures to assess compliance risks and recommend defensible reporting positions.

Register