RV for Catering???????

[Super Mom]

I had a client tell me today that they (a restaurant) is thinking of purchasing an RV for the catering portion of their business. I can see the obvious problems the IRS may have with an asset like this. So, immediately I'm thinking no that I would not recommend an RV. Am I wrong?

[ATSMAN]

I had a client tell me today that they (a restaurant) is thinking of purchasing an RV for the catering portion of their business. I can see the obvious problems the IRS may have with an asset like this. So, immediately I'm thinking no that I would not recommend an RV. Am I wrong?

Did you inquire if the RV is going to be modified in any way for catering business? I have clients who picked up old delivery (panel trucks) and modified it to suit their business needs. One client is a brewer and he modified it as a beer truck that he takes to events in the summer to sell beer and snacks.

I think if it a typical RV without any modifications, how can you justify that it is "ordinary and necessary" for a catering business?

[New York Enrolled Agent]

I had a client tell me today that they (a restaurant) is thinking of purchasing an RV for the catering portion of their business. I can see the obvious problems the IRS may have with an asset like this. So, immediately I'm thinking no that I would not recommend an RV. Am I wrong?

Read TCM 2014-160

[Super Mom]

Read TCM 2014-160

Thanks for that info, interesting read. I'm wondering though, that case kept referring to individuals and S Corps, this particular business is a C Corp, would that be much different?????

[TAXNJ]

Why

I had a client tell me today that they (a restaurant) is thinking of purchasing an RV for the catering portion of their business. I can see the obvious problems the IRS may have with an asset like this. So, immediately I'm thinking no that I would not recommend an RV. Am I wrong?

Why would you not recommend it? In addition to NYEA reply post there is additional info available on how to handle this issue.

In your reply to NYEA, question for you would be why can't a C Corp have similar equipment as a S Corp or sole proprietor or partnership?

[taxea]

Thanks for that info, interesting read. I'm wondering though, that case kept referring to individuals and S Corps, this particular business is a C Corp, would that be much different?????

A business is a business no matter the type.