What kind tax deductable do I get when I lease a car through my company?

Question

I own a small company. I am thinking about leasing a car through my company. I want to know what kind of tax positives come out of this? I LIVE IN ILLINOS

THANKS IN ADVANCE

COMPANY IS NOT A CORPORATION IT IS LLC.
AND I AM AN I.T. AND MY WIFE IS A REAL ESTATE AGENT. I TRAVEL FROM DIFFERENT SITES TO DO MY JOB.
THANKS

Answer 1

There are some advantages however, it depends on how much you actually use your vehicle to conduct business. If you are in a service business, sell real estate, etc. it is a great idea because the majority of your vehicle use for business. The portion of the time you use the vehicle for personal use, you do not get to take a deduction.

If I were you, I would contact my accountant before purchasing or leasing a vehicle. Additionally, your buainess must be a corporation in order to lease the vehicle in the company's name.

Answer 2

If you need a car for driving on behalf of the business you can deduct the cost of the lease of the car, but if you are just going to use the car to commute then the lease is not a business deduction.

Answer 3

The easiest way is to keep a record of daily trips and mileage in your appointment book Then at the end of the year, multiply your business mileage by the dollar rate for that year.. The IRS has a number of publications on this. Remember, travel from your home to your office is personal. If all of your travel from the office during the day is business, record the odometer mileage when you get to the office in the AM, and the odometer reading before you leave in the PM. It's a royal pain in the butt, however it keeps your record clean.

Answer 4

Depends on how much of the total use of the car is personal, how much is commuting, and how much is business mileage. Only the portion that is business miles can be deducted.