8damien8

I'm curious...

I have my own business, and I am trying to figure out how much of the car I can write off on my taxes.

While I was crunching the numbers, I started to wonder how much does someone who buys this car have to make?

I'm considering a 507 Edition going for $79,000 Canadian. Will probably finance over 4 years.

Anyone willing to chime in on this... I'm willing to share if you are

leungsta

iTrader: (1)

I'm 25 and make very close to 100k/year. I'm in Canada as well. I've never financed or leased a car in my life. Based on my business knowledge, it's always more beneficial to buy the car outright than to finance. But then again, if you manage to get a great % financing, go for it! I purchase my 2012 c63 coupe last week for $60k

8damien8

I'm currently making around $200K Canadian, so there is definitely room to purchase the car.

For me, buying outright would be terrible, as I have an incorporation, and the more I take out, the more taxes I pay

leungsta

iTrader: (1)

Oh definitely, if you own your own business than claiming it through your business is the best way to go!! What kind of business are you in?

8damien8

I'm in sports franchise logo design and branding. Yourself?

Merc63

People who drop 80k cash on a car better have 500k in the bank.


Much better investments out there then to drop that on a car instead of leasing or financing at a cheap rate.

If you have a business a lease is the way to go. Especially if you don't keep cars long. Also if it gets smashed you aren't stuck with a accident report on your merc.

This is a question for your accountant of how much you can write off if any.

The less you take out from company the less tax you pay, but also sucks when your t4s are **** and you're trying to get a mortgage or big loan.

Sidv22

Buying outright on just a 100k income, you surely do not have any other liabilities, do you?
I financed mine at 0.99% which seemed reasonable enough and I can have the rest of the money work for me and fetch me more than those 0.99% over next 4 years.

leungsta

iTrader: (1)

I work at CN. Sports franchise logo that sounds like an awesome business!

0 other liabilities since I still live at home with the parents . I used to own an import/export business with my brother which is where most of the funds to buy the car outright came from. I ended up completing my CPA designation and started to pursue something different.

0.99% financing is definitely a scenario where I'd finance as well!!

rentzington

Exactly what I said here before regarding financing a car, even if you can buy outright it makes sense to finance at a low rate and then you could invest at and a higher return than the interest paid.

Not wise to buy a depreciating asset outright unless you've really got the bank to do it and have a fleet of toys .

If people shop around you can find really low rates credit unions are usually under 2%.

realjones88

Buying an AMG is not a sound financial decision at any income level. There is no way to spin it to make it sound like a good idea, because it isn't. The car will likely depreciate a good $5K a year for the foreseeable future. Ask yourself how much am I willing to throw away vs. how much joy will I get from driving the car.

This is a silly thread that will probably be ten pages of people arguing whether to finance or only buy if you can pay cash. I see we've already got "guy who lives with is parents driving c63" out of way. Waiting for "guy who makes $50K, but really loves cars" next.

You want a sound financial decision buy a used Camry. You want to turn money into a roaring exhaust and fun, buy the C63.

abcut973

Exactly what I think! We've had this kind of thread before. If it is just to show off how much money everyone make then it should stop right here right now. An AMG is not an investment. End of the story!

black lavender

leungsta

iTrader: (1)

X100000. As a matter of fact, any car is not an investment. There are those who drive any car from point A to B and there are people like us on forums because we're car enthusiasts.

I've had a passion for cars ever since I was a little kid collecting hot wheels. Any person can pull out a line of credit/loan to drive a nice car, regardless of the income so I'm not sure what the point of this thread is.

chrisridebike8

I agree. I could die tomorrow. I'm going to enjoy stuff while i can. But you can't be too extreme with that either. You have to balance it with planning for the future. If all you do is prepare for when you retire, life will pass you by. If all you do is party and spend, retirement will suck and you will end up a greeter at Walmart.

aussie e55

not enough lol

kjkidd21

I am the same way. I have had a passion for cars ever since before I could drive. When I got my second car, a 2007 Dodge Stratus, I did any and all mods that I could afford. It was tacky and cheap, but I loved it because it was mine.

When I got a job and started making money after college, I bought a 2004 Toyota MR2 Spyder. It was bone stock when I bought it and by the time I got rid of it, it truly looked like a $150k exotic car. After that came a 2009 BMW M3 E93 Convertible and now my beautiful (tastefully modded ) C63.

I understand that a car is not and never will be an investment, but I enjoy it so much that it doesn't matter.

I feel the same way. Don't get me wrong, I am saving money for retirement and keep a nest egg for "just in case" circumstances, but I can't waste my life waiting to spend money and have fun when I'm 65-70 years old. I want to have fun now and just about ALL of my fun money gets dumped into my cars. And you know what, I am just fine with that

rentzington

dchl21

I don't make enough

8damien8

The two cars I'm considering are the C63 AMG and the Audi S4...

The S4 because of AWD, and because I have a newborn, and want to not worry about winter driving.

The C63 because I sometimes think... Screw it... I'll take the baby in the wife's Civic... But Daddy needs a real car!

abcut973

If you are looking for a daily driver able to survive hard winters then the AWD is your choice. But i'll go with the RS5 or maybe soon RS4. Some will say C63 is driveable in winter but the audi will be more practical. Now if you a re financially at ease you can own both or choose a week end car + a daily beater . GL

CarHopper

I bought mine with food stamps.

sakodik

This. My CPA advised me to do a 3 year lease to buy. So I did! She saved me money in the past so I didn't bother arguing or asking details. All I know is the miles restriction doesn't apply because I do plan to buy it out. Having 2 jobs making almost 120k a year.

Enjoy the stuff you can. My dog died unexpectedly without reason and my regret is not enjoying his company more while we worked together. ENJOY IT DAMNIT.

avery.whss

your accountant sucks then no offence, i paid for my C63 cash and didn't pay a dime more in taxes because I "took more out"

I'm in Canada too with a Canadian corp and a American corp

"less tax" it's 13% corporate tax guys...if you're going to cry over paying <100k on $1M profit then Idk..you're greedy as *** then

my logic is..if you can't afford 2 of them, then don't even bother buying the 1st. You need $$ to grow, live, and $$ to make more money

thesaintusa

Depends if the person wants the car to be owned outside of the corporation, in which case you are either paying taxes on income or dividends.

That being said I don't mind payments as I can make more money invested than the interest I pay on the car.

unruin

Reading your posts is near impossible. They remind me of the time I fed my dog alphabet soup and cheese and he explosive shat the letters all over the kitchen.

You should take some of your millions of profit and invest them in some English courses.

Oh and "No offense"