how to write off a car (lease or purchase) payment ?

Question

could someone educate me on this. I have two rental property and one extremely small vending machine business.
I need a truck to do the run around, ie fixing problem for tenants and refill vending machines.
the allowance for mileage just can't add up! Can I buy or lease the truck/van under my registered business name and write off the payments? As I also have a job and I pay lots of tax. Can't I not get my money back for my car payments?
Thanks alot in advance for your business sound answers!

Answer 1

get a business license, form an llc and purchase the auto under the business name with you as personal guarantor.
then you can deducted all auto related expenses on your taxes. you can also deduct a small portion of your household expenses if you maintain a home office. consult your tax professional regarding your potential deductions and licensing requirements.

Answer 2

ANY expense associated with a commercial pursuit (business) can be directly deducted from all income earned. IF you own a truck and THEN satrt the business the IRS will permit you to deduct 1/7 of its value (the price you acquired it for) every year until its' value is zero. This is called depreciating an asset.

IF you lease a truck and use it 100% of the time for business then the lease payment is completely deductible from your gross earnings (sales, minus expenses)

In the first scernario you MAY also use one of two methods to keep track of the cost f operation of a vehicle. One is to keep precise records of all fuel, oil, maintenance, parts, and other expenses associated with tht operation of the truck and turn themin against earnings (vehicle maintenance and operation expenses) OR you can keep a mileage log of all business vehicle use (if you use the truck to get back and forth from work you cannot claim that mileage as a business related mileage) . If the total vehicle logged mileage is say, 85,000 and the business logged mileage is 62,500, then the IRS will permit you to take a mileage deduction of X cents per mile on 62,500 miles ( I think it is up to $.54 now). BUT, if you do this you can not claim ANY vehicle related expenses such as gas, oil, washing, or repairs. It is ONE method or the other. And both methods require detailed record keeping.

Answer 3

Nope. You can only deduct (write off) the portion of your driving expenses that are directly related (and documented with proper records) to your business. If you are incorporated, then the business can purchase the vehicle. You should discuss these issues with your accountant.