Tax Deduction Leased Car
September 24th, 2009Question: leasing a car for your business?
i want to lease a car under my business name.
does anyone know the benefits of leasing,
or should i purchase and make a tax deduction
Answer: Leasing may be easier to figure your actual expenses. But it only makes sense if you do not drive that much, because there are extra charges per mile if you go over the mileage limit that can add up fast. They might typically allow 12,000 mi/yr. I used to drive 35,000 mi/yr and even when I cut back was driving 25,000 mi/yr. At that rate a lease was out of the question.
If you purchase a vehicle and figure actual expenses, don’t expect to deduct the entire cost of the vehicle the first year. In the USA there is a 179 deduction that can accelerate depreciation, but there are annual limits that vary whether it is a passenger vehicle, electric vehicle, or truck or van. That is explained in IRS Publication 946.
Of course easiest is to use the standard mileage rate. But regardless of which method you use, you have to keep accurate logs of business and personal miles (commuting is not business).
Items on Amazon Right Now for Tax Deduction Leased Car:
CBS 6 Tax Guide: 15 things you need to know
Part 1: Anything new this year? Buried within the all-too-familiar tax forms are changes that all filers should be aware of. The changes may be good news.
Brandon from Carey Paul Honda helps Jessica with purchase choices ( Part 3 of 3)
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