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Old 02-24-2008, 03:38 PM
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Dirty Water Dirty Water is offline
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Leasing a car as a business tax write off?

Does anyone lease a vehicle so they can write it off on their taxes at the end of the year?

This year, I'm looking at paying 30% tax on some of my income, and I know that a leased car can be used as a tax deduction.

Normally I'm against leasing, but in this case it sounds like it may save me money.

Does anyone do this?
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Old 02-24-2008, 04:41 PM
IN2MOWN IN2MOWN is offline
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Im not sure I understand. Why do you have to lease a vehicle to write it off?
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Old 02-24-2008, 05:19 PM
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Quote:
Originally Posted by IN2MOWN View Post
Im not sure I understand. Why do you have to lease a vehicle to write it off?
You can write off all of the lease payments as business expense if you can prove that you used the vehicle for business.

The tax laws are stacked towards leasing over owning for some reason.
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Old 02-24-2008, 05:48 PM
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If you're a salaried employee, I don't think you can get much from leasing. (one of those questions I heard a detailed answer to, while the TV was droning on in the background) I recall equipment leases that were geared toward quick writeoffs.
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Old 02-24-2008, 06:05 PM
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mike lane lawn care mike lane lawn care is offline
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say you used the car as a runabout for your company, and for doing estimates and you're all set.
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Old 02-24-2008, 06:28 PM
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You don't really want to be raising red flags on your return, so don't get too creative.
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Old 02-24-2008, 06:32 PM
IN2MOWN IN2MOWN is offline
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Quote:
Originally Posted by Dirty Water View Post
You can write off all of the lease payments as business expense if you can prove that you used the vehicle for business.

The tax laws are stacked towards leasing over owning for some reason.


I was not aware of that.
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Old 02-24-2008, 07:03 PM
cantoo cantoo is offline
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We don't lease but we do write off a percentage of our minivan for business purposes. I think it's around 30%, it's tied to the mileage we put on per year. Repairs and licence are 100% write off. the insurance on it is the percentage too. It's used for estimates, banking, bill collecting, parts pickup, office supply pickup. We have it vinyl lettered so it is also used for advertising. We did discuss leasing but felt it was easier and less red flag raising to just use the percentage way. I have been told that if you don't have a personal vehicle then you are better off not leasing it because you have to have something for personal use. The percentage way works better for this.
Your tax laws may be different than mine. Might want to talk to an accountant to help make the decision.
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Old 02-24-2008, 07:08 PM
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Quote:
Originally Posted by Wet_Boots View Post
If you're a salaried employee, I don't think you can get much from leasing. (one of those questions I heard a detailed answer to, while the TV was droning on in the background) I recall equipment leases that were geared toward quick writeoffs.
Actually, I put in my 40 hours at my company, but I also consult an additional 20 hours as a sole proprietorship.

Of that consulting money, I pay 30% in taxes.

This year I landed a rather large consulting gig (mid five figures), on top of my regular work.

Because of this, I know I need to come up with creative ways to avoid paying tons of tax money
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Old 02-24-2008, 07:20 PM
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I don't know about tons of money, but you could take some deductions for the expenses of this propietorship. Keep a mileage log for the consulting gig, at the very least.
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