Hello,
I am wanting to get a vechical for my businesss. But I was told by a friend that you can only do a tax write off on a vechical if it is leased? I find that a little strange but wanted to confirm it.
Thanks!
2006-07-17 03:20:01 · 8 answers · asked by Milkman 2 in Business & Finance ➔ Taxes ➔ United States
Wanted to thank you all for your answers! Makes me feel better I can own the vehicle and still have write offs too!
2006-07-19 04:36:42 · update #1
it has to be at least 50% for business use i believe. but no, its any vehical
and you can write off milage and gas too. i think its $0.39/mi.
check out IRS.gov for any related info, and do the same for your state's website too
2006-07-17 03:24:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No. A vehicle can be written off if owned too. However, there are maximum amounts that can be depreciated each year AND if you use the vehicle for "other than business purposes", that usage will be considered income to you and would be included in the W-2 of the user (assuming the business is a corporation). If you are Selfemployed, the deduction for the auto is based on the business vs personal used ratio. This can be a very tricky area.
2006-07-17 14:01:53 · answer #2 · answered by extra_37 4 · 0⤊ 0⤋
You can only deduct in lease expense, the percentage used for business purposes.
You can also deduct car expenses such as maintenace and repairs. Again only the percentage used for business.
If you bought the car, you can deduct the depreciation of the car each year. Again only the percentage used for business. You can also deduct car expenses such as maintenace and repairs as in the example above.
You also have the option of expensing the miles or the actual expenses incurred. You can do this with a lease or a purchase. Remember, you can use one method of car expensing or the other, not both.
You should seek the advise of a tax preparer when doing your taxes. It can get complicated.
2006-07-19 19:19:33 · answer #3 · answered by Ren 3 · 0⤊ 0⤋
I do income taxes for a living and here is the answer:
The lease is deducible for the percentage business use of the car-if it is used 75% for business, you can deduct 75% of the lease payment.
If you buy the car the you can deduct the interest portion of your loan payments to the extent that it is used for business.
In either case you can only take mil age or actual gas and maint. expense, you can not take both.
2006-07-17 10:36:39 · answer #4 · answered by Lanie7/21 3 · 0⤊ 0⤋
That is in fact inaccurate. You may also claim depreciation on a vehicle that is used for business purposes.
Check out www.irs.gov, publication 463, and publication 946 to see the details. It is published by our government, so be prepared to sift through some mumbo-jumbo to find exactly your situation.
2006-07-17 10:28:48 · answer #5 · answered by odu83 7 · 0⤊ 0⤋
no that is not true- u can also include any gas and car maintenece keep all reciepts that go into your business
2006-07-17 10:27:28 · answer #6 · answered by Anonymous · 0⤊ 0⤋
that's not true
not only can you write off millage
you can claim it's depredation value
2006-07-17 10:24:11 · answer #7 · answered by BigBadWolf 6 · 0⤊ 0⤋
he is correct lease can be 100% writeoff
2006-07-17 10:25:00 · answer #8 · answered by lugwrench3@verizon.net 3 · 0⤊ 0⤋