archaic

If you own your own company, would it make sense to lease a car under your company name so you can write off the payments and at the end of the lease, buy the car from your own company? That way you'd benefit from having part of what you paid for your car during the lease period as a business expense.

As a very simple example, if you have a $50k car, with total lease payments of $30k and a residual value $20k. Since the lease would be under your own business, you would estimate saving 1/3 of that as a tax benefit. So your total lease payments would be $20k. Add that to the residual value that you'd have to pay to buy the car after the lease under your own name, your $50K car only costed you $40k. This is not taking into account interest of course.

flipside909

Oooh this is in the wrong section. Perhaps Car Chat would be better than here in the 3GS forum.

Vladi

You might end up being "double taxed" anyway.

I am not sure about the lease but the game is pretty much the same like if you own it.

Find a good tax advisor and see if there is a way around it legally of course.

Leets

what about insurance? Aren't rates usually different if a vehicle is considered a "work" vehicle? Not sure, just a thought

akim47

well, first, all leased cars have an inclusion amount u have to add back in...

also, you can only deduct the payments to the extent of % of business use...

you don't necessarily have to buy the car in the name of the business to deduct it for business use, it depends on the business entity...

anyhow, i would agree that this is not the right forum for this discussion....


ak

rominl

iTrader: (4)

you wn't end up "double taxed", coz' when leasing a car, you only get taxed on the payment, not on the full value of the car

tzu911

Should 996 be leased or bought?
Should 997 be leased or bought?

I know Henry's done his homewerk.

rominl

iTrader: (4)

hahahaha god damnit, don't tell me that!

i already got a sc430 lease to swallow