Tools of the trade exemption and contract vehicles

[Chrispycritter]

As regards to an Offer-in-Compromise,can I place my contract vehicle in the "tools of the trade" exemption area? (a bobtail truck w/lift)

What is the method the IRS uses to determine whether it is or isn't a personal-use vehicle?

 

[abezon]

You can put it there, but be prepared to show that the vehicle is used 100% for business.

 

[Chrispycritter]

Any idea of how to go about that?

 

[abezon]

Detailed mileage logs, which you're already keeping so you can deduct car expenses on your return, right?

 

[realtor_hubbie]

Why wouldn't his "bob-tail truck with lift" qualify as a "qualified non-personal use vehicle" per IRS pub 15-B (http://www.irs.gov/publications/p15b/ar02.html#d0e2154), which states:

Pickup trucks.
A pickup truck with a loaded gross vehicle weight of 14,000 pounds or less is a qualified nonpersonal-use vehicle if it has been specially modified so it is not likely to be used more than minimally for personal purposes. For example, a pickup truck qualifies if it is clearly marked with permanently affixed decals, special painting, or other advertising associated with your trade, business, or function and meets either of the following requirements.

1. It is equipped with at least one of the following items.
1. A hydraulic lift gate.
2. Permanent tanks or drums.
3. Permanent side boards or panels that materially raise the level of the sides of the truck bed.
4.Other heavy equipment (such as an electric generator, welder, boom, or crane used to tow automobiles and other vehicles).

2. It is used primarily to transport a particular type of load (other than over the public highways) in a construction, manufacturing, processing, farming, mining, drilling, timbering, or other similar operation for which it was specially designed or significantly modified.

 

[Snipes5]

It probably isn't relevant, since the post you're replying to is very nearly a year old. You might want to check the dates before you answer questions.

Snipes