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(i.e. “motorsports advertising” or • Whether you can expect to the vehicle. To make tracking
“promotional expense” for example) make a future profit from the mileage and other costs easier
for your business that you are appreciation of the assets used there are apps such as Microsoft’s
promoting. in the activity. MileIQ that work automatically in
the background on your cell phone
The IRS looks at the following We’ll conclude with a discussion while you drive. By swiping the
nine factors to help determine of potential business deductions nature of your trips (i.e. business vs.
whether your operation should related to racing. pleasure), the app will generate an
be classified as a business or not. IRS-approved mileage log that can
No single factor is determinative. Vehicles: (Depreciation Form be used in case of a random audit.
The outcome will depend on the 4562)
sum of your individual facts and Virtually all of us tow our race Bonus Depreciation and
circumstances as well as how rigs with vehicles that easily qualify Section 179 Expensing: The Tax
effectively your case is presented. for substantial income tax benefits if Cuts and Jobs Act (TCJA) allows
attention is paid to how the vehicle unlimited 100% first-year bonus
• Whether you carry on the is treated for tax purposes. depreciation for qualifying new
activity in a businesslike and used assets that are acquired
manner and maintain complete GVWR (Gross Vehicle Weight and placed in service between
and accurate records. Rating): The requirement for
“heavy SUV” classification is that September 28, 2017, and December
• Whether the time and effort the factory GVWR be over 6,000 31, 2022. However, for a used asset
you put into the activity indicate pounds. Every major brand of to be eligible for 100% first-year
you intend to make it profitable. pickup (1/2 ton and up) have bonus depreciation, it must be
GVWR’s over 6,000-pounds new to the taxpayer (you or your
• Whether you depend on income including Ford, Ram, Chevrolet, business entity).
from the activity for your Toyota, GMC and Nissan.
livelihood. For example, let’s say you buy
Suburban’s and Tahoe’s qualify, (and finance if necessary) a used
• Whether your losses are due along with a surprisingly long list of
to circumstances beyond your other vehicles. If in doubt,
control (or are normal in the check inside your driver
startup phase of your type of door for the factory GVWR
business). sticker.

LINE2LINE Abradable Coating with “Adaptive Skirt Technology” offers a • Whether you change your Business Use %: Another
greater range of benefits than standard coatings though these benefits -
methods of operation in an key requirement is that the
n Thickness of coating applied at 80% of skirt clearance to keep piston stable vehicle be used more than 50%
and square in the bore. attempt to improve profitability.
n Each piston will hone in to its bore to maintain an oil wedge creating a for business. You are required
“non-geometric” oil film. • Whether you or your advisors to keep a well-maintained log
n Optimum ring seal is achieved with less piston rock. have the knowledge needed (electronic or paper) of all
n Reduces shock loads and degradation in piston/rod/bearing assembly. to carry on the activity as a business and personal mileage.
n Piston to Cylinder Wall friction is reduced to its lowest point. successful business. You’ll also want to record fuel
Our coatings are available on most types of UEM pistons. Find out today how • Whether you were successful costs, oil and maintenance
LINE2LINE or one of our other coatings can make your builds more expenses, repair parts, tires,
powerful, more efficient and longer lasting. in making a profit in similar optional equipment installed, all
activities in the past.
types of insurance premiums,
• Whether the activity makes a interest expense if there is a
We offer a variety of coatings depending on profit in some years, and how loan on the vehicle, annual tag
your application and needs
much profit it makes. (Non and emissions fees, business
C-corps only) parking and tolls along with any
other costs to own and operate

SPRING 2021 Nitro Madness Magazine 55

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