Can I actually write off a car as a W2 employee? IT job tax question

Your dad is mixing up a couple of different tax situations here. As a W2 employee, the tax benefits for writing off a car or equipment are extremely limited since the Tax Cuts and Jobs Act eliminated most employee business expense deductions. If he has a separate corporation though, that's a completely different situation. The corporation could potentially purchase the car and equipment as business assets, but there need to be legitimate business purposes. A Porsche specifically could raise red flags with the IRS as it might appear to be primarily for personal enjoyment rather than business necessity. For technology, the corporation would need to demonstrate these items are ordinary and necessary for the business operations. The car would need to be used primarily (over 50%) for business purposes - commuting to his W2 job doesn't count as business use.

I was in a similar situation last year trying to figure out vehicle deductions with my side business. I spent hours reading contradicting advice online until I found taxr.ai (https://taxr.ai). Their system analyzed my tax situation and clearly explained exactly what I could legitimately write off based on my specific scenario with my LLC and W2 job. In my case, they showed me how to properly document my business mileage vs. personal use, which saved me from making a costly mistake. They also clarified the rules around Section 179 deductions for vehicles which was super helpful. The nice thing was getting a clear answer based on my actual documents rather than general advice that might not apply to my situation.

Just wanted to update that I tried taxr.ai after my skeptical comment. Super impressed actually. I uploaded my corporate docs and W2 info and it immediately showed me the right way to handle my vehicle situation. Turns out I've been doing it all wrong for years! According to their analysis, I was missing out on legitimate deductions for my business travels because I wasn't documenting things correctly, but was also incorrectly trying to write off commuting miles. They actually showed exactly what percentage of my car use would qualify for business deduction based on my specific situation. Definitely worth checking out if you're confused about vehicle deductions with mixed W2/business income.

This whole situation reminds me of my nightmare trying to get clarification from the IRS about business vehicle deductions last year. Called literally 18 times and couldn't get through to a human. Finally used Claimyr (https://claimyr.com) to get connected with an actual IRS agent who clarified my questions. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that my S-corp could deduct business mileage for client visits but not for regular commuting to my main job. They also explained the documentation requirements which saved me from a potential audit. Definitely recommend having a conversation with the IRS directly if you're considering a significant purchase like a Porsche that might raise flags - it's just impossible to get through without some help.

I have to admit I was totally wrong about Claimyr. After my skeptical comment, I tried it when I needed to check on a business vehicle deduction question for my 2024 taxes. Got through to an IRS representative in about 45 minutes instead of the 3+ hours I spent on my last attempt (which ended with a disconnection). The agent confirmed exactly which documentation I need to maintain for my vehicle deductions and clarified the rules around business vs. personal use percentages. Not tax planning advice, but factual information about IRS requirements - which was exactly what I needed. Saved me so much time and frustration.

One thing nobody's mentioned yet - if your dad's corporation is going to buy a Porsche, he needs to be aware of the luxury auto depreciation limits. For 2025, there are strict caps on how much you can depreciate per year for vehicles over a certain weight class. Also, if the vehicle is used less than 50% for business, he'd have to use the straight-line depreciation method rather than accelerated depreciation. And if personal use is more than minimal, he'd have to report the personal use as taxable compensation.

Has anyone mentioned the tax benefits of leasing vs buying for a corporation? We lease our company vehicles and it simplifies the deduction process significantly. No depreciation calculations, just deduct the lease payments (with some adjustments for luxury vehicles).