nyclio

What are some valid jobs/businesses that allow you to actually write off lease payments on a car?

Also, is there a limit as to how much can be written off?

i.e. - if I were to lease a fully loaded M3 for 1100-1200/mo., is that too high to write off?

Thanks!

hornyleprechaun

Do some reading here.. AFAIK you can't write off the lease payments, just expenses that go into the vehicle.

http://www.auto-repair-services-flor...ion-maybe.html

bgsm1th

Every small business owner I know writes off their leases...

To the OP, there are a LOT of caveats specific to your situation that would/could dictate your answer specific to you.
Do you own a small business, or are you considering starting one?

Will Y.

You can write off the proportion of the lease, insurance, etc. that you use for business as long as it is not for commuting or non-business use and your company does not reimburse you for the use.
However, the vehicle must be reasonable for use in the particular type of business (i.e. no Veyrons for your roofing company).

:ibmovetocartalkormoney&investing:

nyclio

I might be starting a small business; a storefront; and my current car will be fully paid off in 2 or 3 months.

I was considering leasing a "fun" machine but only if it can be written off at year's end.

What fun is having no car payment anyway? :-P

NSXNEXT

iTrader: (2)

Sounds like you need to talk to a tax specialist but considering it sounds like just a run of the mill brick and mortar store, I would doubt you'd be able to sneak in this writeoff.

Is the business car-related?

nyclio

Nope. Probably a turn key dry-cleaning operation.

NSXNEXT

iTrader: (2)

then the answer is pretty simple you cannot write off the lease of an M3.

Maybe a delivery van but the IRS would be ALL OVER a sports car as a business expense.

NSXNEXT

iTrader: (2)

Oh and this seemed pretty appropriate....

Kramer : It's just a write off for them .
Jerry : How is it a write off ?
Kramer : They just write it off .
Jerry : Write it off what ?
Kramer : Jerry all these big companies they write off everything
Jerry : You don't even know what a write off is .
Kramer : Do you ?
Jerry : No . I don't .
Kramer : But they do and they are the ones writing it off .
Jerry : I wish I just had the last twenty seconds of my life back .

nsnrider

iTrader: (2)

you can def. write off your lease payment for a reasonable vehicle that you use for your company only. Driving your kids to a soccer game does not count. If you use your company vehicle 50% and the other 50% use it for personal use, then you can only deduct 50% of expenses. There are a few ways of doing it too, but you'd have to talk to an accountant to come up with a plan that best suits your needs.

Sports cars and luxury vehicle are very hard to claim as a needed business vehicle, but there are times when it is plausible.

again, talk to an accountant to see what'll work best for you.

Good luck on your future endevers, its actually a good time to start a business since economy should be picking up shortly.

NSXNEXT

iTrader: (2)

You just proved my point. No way in hell he'll get the IRS to believe an M3 is a business vehicle for a dry cleaning business. Maybe a show car for an audio/performance car parts business.

Jiggy2dmax

iTrader: (1)

x2, If the vehicle is in your personal name as opposed to the company you may also get away with writing off the mileage instead of the payment itself(more based towards a car that is financed as opposed to lease). As long as the car is within reason, chances are you'll be able to pull off at least a big chunk of the lease/car payment. As long as the IRS gets there fair share, your in fair shape.....I write off 80% of my car stuff(payment(no logner)ins, gas, maint) onto my business. The real issue with the write off's is that many small businesses use expensive car lease and other personal items to illustrate a loss for a business which in turn means the IRS gets almost nothing. Use your head, get a GOOD accountant and you'll be ok.