131: Rules for Business Vehicle Tax Deduction

White Coat Investor Podcast

Dr. Jim Dahle of the White Coat Investor

Medicine, Health & Fitness, Business, Investing

4.9 • 2.3K Ratings

🗓️ 7 November 2019

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

Deducting your business vehicle sounds like a great way to lower your tax bill. Unfortunately it is probably not going to be a significant deduction for most doctors. For starters W2 employees cannot deduct a car or business mileage. You don't own a business so you cannot own a business vehicle. A business can buy a car if it is going to use it at least 50% for business purposes. Regardless of the percentage of time you use your car for business purposes, business owners can still deduct their business miles. Deducting business miles is worth $.58/mile in 2019. That is not insignificant and can really add up. I discuss the rules of business vehicle tax deductions in this episode to help you decide what you can deduct.

I also answer listener questions about how businessmen making millions avoid paying taxes, being on Tricare and using an HSA, what to do with the TSP when you retire, what to do with the whole life insurance policy your parents bought you, and how the pro-rata rule affects the mega backdoor Roth IRA. See the show notes at https://www.whitecoatinvestor.com/classic-blog/

This episode was sponsored by Bob Bhayani at https://drdisabilityquotes.com/ They are a truly independent provider of disability insurance planning solutions to the medical community nationwide. Bob specializes in working with residents and fellows early in their careers to set up sound financial and insurance strategies. Contact Bob today by email at [email protected], or by calling (973) 771-9100.

Transcript

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0:00.0	This is the White Code Investor Podcast, where we help those who wear the White Code get a fair shake on Wall Street.
0:06.0	We've been helping doctors and other high-income professionals stop doing dumb things with their money since 2011.
0:12.0	Here is your host, Dr. Jim Dolly.
0:18.0	Welcome to White Code Investor Podcast No. 131 to ducting your car.
0:22.0	This episode is sponsored by Bob Bionny at DrDisabilityQuotes.com.
0:26.0	They are a truly independent provider of disability insurance planning solutions to the medical community nationwide.
0:32.0	Bob specializes in working with residents and fellows earlier in their careers to set up sound financial insurance strategies.
0:38.0	Contact Bob today by email at info at drdisabilityquotes.com or by calling 973-771-9100.
0:48.0	I'm sure you'll have a great experience there as hundreds of other White Code investors have.
0:52.0	All right, or quote of the day today. This comes from Charlie Munger, you know, Warren Buffett's partner, who said,
0:58.0	if you have a $2,000 monthly mortgage payment, grandma can help.
1:02.0	If you have a $20,000 monthly mortgage payment, no one can help.
1:06.0	And that is the truth. And one of the biggest reasons why he got to watch that lifestyle inflation, especially if you were funding it with debt.
1:14.0	Thanks so much for what you do. As most of you know or recall, I am also a practicing physician.
1:19.0	I'm only half time now. I've been half time now for a little bit over a year. Before that, I was three quarter time for two years.
1:25.0	And prior to that, it was working full time, even while I did all this White Code investor stuff.
1:30.0	And so I'm in the trenches with you, seeing patients yesterday. I had a shift the day before I had a shift.
1:35.0	Today I have a shift. I'm doing all this kind of on the side a little bit, although the truth is, you know, the medicine has probably become the side gig at this point,
1:44.0	just because I'm pouring so much time and effort into the White Code investor.
1:48.0	But my point is, I still know what you're going through. And I want to say thanks for what you're doing.
1:53.0	This is not easy stuff. You're getting calls at all hours the night.
1:57.0	You got people making you do all kinds of crazy stuff and jump through crazy hoops.
	...

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