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Question for Dealership Owners

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Last activity 2005-07-19 8:11 PM
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Trailer Stud
Reg. Jun 2005
Posted 2005-07-17 3:39 PM (#28155)
Subject: Question for Dealership Owners


Member


Posts: 13

Location: Oviedo Florida
Have any of yall plastered the dealership name and what not on the side of a personal trailer and/or truck and called it advertising for tax/business purposes? I am a hopefuly future dealership owner ( after many more years of school and some time working for someone else), and I was just curious as to rather it was legal, sketchy, or whatever.
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huntseat
Reg. Oct 2003
Posted 2005-07-17 7:02 PM (#28161 - in reply to #28155)
Subject: RE: Question for Dealership Owners


Expert


Posts: 1989
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Location: South Central OK
Talk to your accountant.
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Trailer Stud
Reg. Jun 2005
Posted 2005-07-17 8:49 PM (#28164 - in reply to #28161)
Subject: RE: Question for Dealership Owners


Member


Posts: 13

Location: Oviedo Florida
Actually... after I get my bachelors in Entrepreneurship I will be going on to get my Masters in Accounting... so I guess I should ask myself? haha. I want to be my own accountant ( for the first while atleast), and just have a CPA look at my books every quarter. But I guess I will learn laws such as that in a future class.
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huntseat
Reg. Oct 2003
Posted 2005-07-17 9:53 PM (#28169 - in reply to #28155)
Subject: RE: Question for Dealership Owners


Expert


Posts: 1989
1000500100100100100252525
Location: South Central OK

I understand you wanting to "do" your numbers for your dealership and that sounds good BUT...

when the IRS come after you IF you hire an accountant you can blame HIM!  IF you ARE the accountant they'll just come after YOU!

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Trailer Stud
Reg. Jun 2005
Posted 2005-07-17 10:33 PM (#28172 - in reply to #28169)
Subject: RE: Question for Dealership Owners


Member


Posts: 13

Location: Oviedo Florida

   Well like I said, there will be a CPA looking at my numbers every quarter, and that would have to be done even if i did hire an accountant. They will be the ones doing all the IRS stuff. And all this is far in the future if it does ever happen, so who knows.

   And the reason I want to get my masters in accounting is also that I will have a career to fall back on if things down work out the way i want them to.

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Reg
Reg. Oct 2003
Posted 2005-07-18 6:10 AM (#28177 - in reply to #28169)
Subject: RE: Question for Dealership Owners


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Posts: 2689
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Originally written by huntseat on 2005-07-17 9:53 PM

I understand you wanting to "do" your numbers for your dealership and that sounds good BUT...

when the IRS come after you IF you hire an accountant you can blame HIM! IF you ARE the accountant they'll just come after YOU!



I remember THAT course,

BLAME SHIFT 101


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barry
Reg. May 2005
Posted 2005-07-18 12:39 PM (#28190 - in reply to #28155)
Subject: RE: Question for Dealership Owners



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Posts: 225
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Location: Kansas City
These type questions may not best be answered by regular posters on this board. Might check out ex-enron-execs.com or worldcom_scams.net. Posters in that group of people might be best suited to the finer art of intrepreting accounting rules. . .
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equinetrans
Reg. Jun 2005
Posted 2005-07-19 8:37 AM (#28232 - in reply to #28155)
Subject: RE: trailer axles


Member


Posts: 22

Location: Webster, NH
Absolutely you can put your dealer's logo on the side of the trailer. Best example I can think of is NASCAR. Have you ever seen their trailers? The trailer would then become a business expense, and tax deductible against income.Bigger problem is that hauling your trailer has now become a commercial enterprise. If your total vehicle weight with cargo is 10,000# or greater, you are a commercial vehicle, subject to driver's logs, health certificate, and vehicle inspections. Have you ever noticed those weight stations on the side of the highway that say 'all commercial vehicles must stop?' You'll be joining them.What you're going to find as you advance in your business courses is that often issues involving business decisions involve a variety of different statutes and different agencies, in this case, not only the IRS, but the DOT.Jim Clark-Dawe
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Lankyman
Reg. Dec 2003
Posted 2005-07-19 9:14 AM (#28239 - in reply to #28155)
Subject: RE: Question for Dealership Owners



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Posts: 91
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Location: South Carolina

Equinetrans is correct about possibly being considered a commercial vehicle.  If you have any phone numbers or writing on the sides of your truck / trailer that can be easily read by people passing by, then some federal & state agencies could have probable cause & stop you under the rules governing commercial vehicles.  I am not referring to the tiny name / phone number of the dealership where you purchased your truck / trailer.  Also, not having your trailer tagged could cause some agencies to pull you over, especially if you are hauling from you home state into other states that have different requirements concerning the tagging of vehicles / trailers.  Also watch out for the number of pounds that your toe vehicle’s tag covers.  If that tag does not cover enough pounds to include both your truck & trailer, some one could pull you over & check it.

 

Here is some information concerning the use of advertising as a business expense from the US Master Tax Guide – 2005 – paragraph #969:

 

“Advertising Expenses – Advertising expenses are deductible if they are reasonable in amount & bear a reasonable relation to the business.  The expenses may be for the purpose of developing goodwill as well as gaining immediate sales.  The cost of advertising is deductible when paid or incurred, even though the advertising program extends over several years or is expected to result in benefits extending over a period of years (Rev. Rul 92-80).  The Tax Code and the IRS require that the cost of printing a catalog that is not replaced annually be amortized over the expected life of the catalog.  However, some courts have held to the contrary, taking the view that catalog costs are in the nature of an advertising expense.  The cost of public service or other impartial advertising, such as advertising designed to encourage the public to register & vote, are deductible.  The Tax Court has held that packaging design costs were a deductible advertising expense even though the design provided the company with significant future benefits (RJR Nabisco, 76 TCM 71, CCH Dec. 52,786(M) (Nonacq.)).  No deduction may be claimed for expenses of advertising in political programs or for admission to political fund-raising functions & similar events (Code Sec. 276).  This includes admission to any diner or program if any part of the proceeds of the event directly or indirectly inures to or for the use of a political party or a political candidate.”

 

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Trailer Stud
Reg. Jun 2005
Posted 2005-07-19 1:16 PM (#28255 - in reply to #28239)
Subject: RE: Question for Dealership Owners


Member


Posts: 13

Location: Oviedo Florida
I never really thought of the DOT side. If and when the time comes ( 10 years from now or so... nothing wrong with dreaming early right?), than i'll have to look at the pros and cons. Personally I think a Bilboard on the side of a trailer would be more visible to the people I would be looking for than one on the side of a road, even a major interstate. So you never know, when the time comes and I weigh pros and cons it may be worth it, it may not.I know out here there is a Hyundai dealership that hooked up with an auto paint shop, painted about 10 Sante Fes all kinds of crazy designs, and they just drive them around the malls, the beach, and what not.  
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Lankyman
Reg. Dec 2003
Posted 2005-07-19 1:26 PM (#28258 - in reply to #28155)
Subject: RE: Question for Dealership Owners



Regular


Posts: 91
252525
Location: South Carolina
One option could be a temporary magnetic type sign that you could place on or remove from your truck / trailer as needed so you could advertise when you wanted to but remove it when you didn't want to advertise.
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Trailer Stud
Reg. Jun 2005
Posted 2005-07-19 8:11 PM (#28287 - in reply to #28258)
Subject: RE: Question for Dealership Owners


Member


Posts: 13

Location: Oviedo Florida

 There is that... but the only time I wouldn't want to be called "commercial" would be going to horse shows/rodeos ( yes i do want to live vicariously through my children... nothing wrong with that right?), and it wouldn't be very business savy to not advertise then... so who knows.

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