mY WIFE NEEDS A LEASED VEHICLE AS A BUSINESS WRITE-OFF, CAN WE OBTAIN ONE AND LEGALLY WRITE IT OFF...?

Question

...if a) I participate as co-signer to lower the interest rate?
b) use my personal vehicle as a trade-in to reduce the lease expense?

Answer 1

Ask your accountant or tax professional. That is the only way to know 100%.

Good luck!

Answer 2

While it's best to speak to a tax specialist, here's the basics:

To write off a vehicle lease, you need to use the vehicle for business purposes. That means it cannot be used for vacation, carrying groceries, or transporting the kids.

Assuming that it's really used for business purposes... let's turn to your specifics.

If you are a co-signer, that will not automatically disqualify the car. Basically what you're doing is co-signing FOR YOUR WIFE'S BUSINESS, not your wife. There's nothing wrong with an individual doing this.

As far as the trade-in goes, on the surface this does not appear to be an issue. However, be aware that there may be tax consequences to this... it could be construed as you giving an asset to your wife's business, which means she could owe taxes on the "gift." This is definitely where you'd want to talk to a tax expert, before doing it, to ensure that you do this exactly right.

Answer 3

Heres an idea: Why not lease your car to your wife's business.. =)

You get an income and she gets a write off..

hmm..

Answer 4

no you can not write off a leased vehicle because you don't have ownership of it.