In the past our Husband and wife partnership business has been doing fine.
We file IRS form 1065 and K-1s.
We are filing our 1065 for 2018. We have an extension.
Based on this business doing OK, we purchased a luxury vehicle in Jan 2018
We have 2 other cars that we use for personal use. One car for each of us.
However, in 2018 our business took a dive. According to the IRS the depreciation is $18,000 in the first year for such vehicles including the Bonus depreciation. This is a large figure relative to our 2018 sales.
Will this trigger an audit?
Will the IRS ask us why did we have to purchase a luxury vehicle?
- posted 11 months ago