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Money Guy Show

Is It Ever Okay to Break the 20/3/8 Car Buying Rule?

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.62.8K Ratings

🗓️ 12 June 2024

⏱️ 24 minutes

🧾️ Download transcript

Summary

"I’m self-employed and the vehicle I drive is 100% work-related. I’m not trying to buy anything new, but I will need a car that’s somewhat expensive. Can I break 20/3/8 since it will be depreciated over 6 years?"

We'll walk you through that question and more in today's Q&A episode!

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Transcript

Click on a timestamp to play from that location

0:00.0

Is it ever okay to break 23 8?

0:10.0

I am so excited because we get questions like this all the time. Matter of fact, we love

0:15.2

getting questions from you guys. We love knowing what are the things that we can

0:19.8

speak to that might be viable to you? What are the things that we can weigh in on

0:24.5

that you might find value in?

0:26.1

So right now, we have the team out in the wings

0:28.4

collecting your question.

0:29.4

So if you're in the chat,

0:30.6

you want to get our thoughts on a question that you have, sure you get it in the chat so with that I'm going to throw it over to you creative director

0:37.5

Ruby yep I've got one to start us off from Eric B He says I'm self-employed and the vehicle I drive is 100% work related.

0:47.0

I'm not trying to buy anything new, but I will need a car that's somewhat expensive.

0:53.0

Can I break the 23-8 car buying rule

0:56.8

since it will be depreciating over six years?

1:01.4

Is it ever okay to break 23-8? I'm interested to hear what you all say to this.

1:05.0

Well, okay, so that's an interesting question, right? So there's two, well, it's interesting. A lot of people ask us, is it ever

1:10.0

okay to break 23-8? But I do appreciate Eric throwing a unique flavor

1:14.5

on their brine that we haven't talked a ton about.

1:16.3

Because now it's a business asset.

1:18.2

So he owns some sort of business where automobiles required.

1:21.9

Maybe it's a construction company, work truck,

1:24.3

something like that.

1:25.1

And there are unique tax rules surrounding

...

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