Write off the lease payment
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Write off the lease payment
I have ended up working from home that requires me to go to clients sites a few times a week. I was wondering if anyone can lay down the basics of writing off a lease on a $120,000 car.
Thanks,
My idea is as follows but maybe I'm missing something.
1) Lease a vehicle for "business use" that you prepay for a large number of miles. Say 20k miles per year. This reduces the residual value of the car
2) Enjoy a tax deduction on the cost of the lease?
3) After 3 years, the residual value of the car is much less than fair market value due to overpaying for the annual mileage and then not really driving the car much.
4) Buy the car for the artificially low residual value and keep it as a personal vehicle.
5) Sell your old personal vehicle since this business one is now yours personally.
Supposing this was a car that you wanted to buy for personal use anyway, if you have the patience to wait 3 years for it, you could make out much better than just buying it outright for personal use? Maybe? Is this legal? New to this whole gig.
Thanks,
My idea is as follows but maybe I'm missing something.
1) Lease a vehicle for "business use" that you prepay for a large number of miles. Say 20k miles per year. This reduces the residual value of the car
2) Enjoy a tax deduction on the cost of the lease?
3) After 3 years, the residual value of the car is much less than fair market value due to overpaying for the annual mileage and then not really driving the car much.
4) Buy the car for the artificially low residual value and keep it as a personal vehicle.
5) Sell your old personal vehicle since this business one is now yours personally.
Supposing this was a car that you wanted to buy for personal use anyway, if you have the patience to wait 3 years for it, you could make out much better than just buying it outright for personal use? Maybe? Is this legal? New to this whole gig.
Last edited by icebeam; Aug 3, 2015 at 08:08 PM.
