Leasing a car

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  • jfoxcpacfp jfoxcpacfp 
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7331
    Joined: 01/09/2016

    I knew a guy who had a side business to, as best I could tell, mine it for tax savings. He explained to me that he wrote his own car off at 100% use. So, naturally I inquired how that might be? The gist of the scam, I think, was that he and his wife had another car for personal use, so he claimed this was solely for business use.  Thing was, he worked with me and I knew he commuted in that car. Not saying it was directly related but eventually we let that guy go for, shall we say, questionable ethics.

    Click to expand…

    Um, yup – back to ordinary and necessary – and reality. You’re one of the good guys (sad to say – we aren’t all). CPAs should not self-select ignorance.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555

    #171726 Reply
    Avatar Tim 
    Status: Accountant
    Posts: 2133
    Joined: 09/18/2018

    Lease purchase is a financial decision.
    Ownership and tax reporting is different calculation.

    54.5 cents per mile for business miles driven (up from 53.5 cents in 2017.

    Please note the rate is the same for your new 2019 Porsche 911 as the 2003 Honda Civic (duct tape for the passenger door). The business use documentation can be an expense report. Most likely you can buy the expense report and duct tape as office supplies too.

    #171734 Reply
    Zzyzx Zzyzx 
    Status: Physician
    Posts: 139
    Joined: 09/24/2018

    there are reasonable leases on slightly used cars with low miles that still are under warranty (example) which is not a bad choice for a fun, luxury, unreliable car that you don’t want to keep.  1099 work also helps.  But with fun new electrics coming out the tax incentives make these more appealing

    It’s psychosomatic. You need a lobotomy. I’ll get a saw.

    #171822 Reply

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