Buying or leasing automobile for your LLC ?

[Gpan]

I will be working away from my home town and in need of a car/suv to get around the new job site, Hospital to Apartment and such. Should I buy OR lease to take full advantage of Sec.179?

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[mgdsh]

Probably best to discuss with your accountant.

 

[Gpan]

Probably best to discuss with your accountant.

I will but I want to hear it from the general public first before talking with my CPA

 

[sazerac]

I will but I want to hear it from the general public first before talking with my CPA

The general public is saying you should discuss this with your CPA.

 

[James Martin]

I will also suggest you to talk with your CPA.

 

[Gpan]

So I spoke with my CPA. He suggests me to ask the general public about this first before he give me the final/official/legal answer

 

[Mman]

So I spoke with my CPA. He suggests me to ask the general public about this first before he give me the final/official/legal answer

Sounds like you need a new accountant.

 

[Gpan]

Sounds like you need a new accountant.

I also asked my CPA that question too and he said to consult with this forum

 

[rl2]

Here is the question: Who are you trying to make rich? The car company, the finance company, yourself? The taxes difference are nice but at the end of the day if you are paying someone else thousands so you can save 30% on your taxes you are out 70%.

Here is a great lease vs purchase calculator: http://financialmentor.com/calculator/lease-vs-buy-car-calculator

Remember millionaires don't drive fancy cars until they can pay for them cash and with out worry.

 

[Gpan]

Here is the question: Who are you trying to make rich? The car company, the finance company, yourself? The taxes difference are nice but at the end of the day if you are paying someone else thousands so you can save 30% on your taxes you are out 70%.

Here is a great lease vs purchase calculator: http://financialmentor.com/calculator/lease-vs-buy-car-calculator

Remember millionaires don't drive fancy cars until they can pay for them cash and with out worry.

Thanks for the reply

First of all, I am in need of a vehicle. I am not getting one just for the sake of getting one or to get some tax break
Second of all, I am not looking at some fancy, luxury car, just something reliable to get me from point A to B in the snow
Third of all, since I need a car, not fancy, just regular, reliable, why not get some tax deduction out of it? 30% save on tax is still better than 0% save
This thread is to compare the 2 methods of obtaining a vehicle, Leasing vs. Purchasing

 

[k12balla]

Are you 1099 or w2? If you have another vehicle available for personal usage and dedicate this one mainly to business, you should be able to deduct miles, maintenance, tolls and part of the cost. It has to be within reason though. Buying a luxury car, for someone who needs to portray a certain image, entertain clients etc makes sense, vs someone who just need to drive it to and fro. But yea. Having another vehicle makes it look more legit. I would buy vs lease if you can afford it.

 

[Gpan]

Are you 1099 or w2? If you have another vehicle available for personal usage and dedicate this one mainly to business, you should be able to deduct miles, maintenance, tolls and part of the cost. It has to be within reason though. Buying a luxury car, for someone who needs to portray a certain image, entertain clients etc makes sense, vs someone who just need to drive it to and fro. But yea. Having another vehicle makes it look more legit. I would buy vs lease if you can afford it.

Sorry your post is confusing on the buy or lease part. I think you meant: " I would buy and not lease if you can afford it" , right?
All of this made possible with 1099 contract. I don't think you could deduct a car (buy or lease) on a W2 contract

 

[Saddleshoes]

I will be working away from my home town and in need of a car/suv to get around the new job site, Hospital to Apartment and such. Should I buy OR lease to take full advantage of Sec.179?

Check the mileage limitations on your lease very closely!
Most leases have you paying a big penalty for miles over the minimum they establish.
Basically, if you have 20 mile (one way) commute to work you will be burned on the most contracts.

 

[The White Coat Investor]

http://whitecoatinvestor.com/may-i-please-finance-my-car-friday-qa/
http://whitecoatinvestor.com/quit-buying-cars-on-credit-15-reasons-to-pay-cash/
http://whitecoatinvestor.com/drive-a-beater-get-rich/
http://whitecoatinvestor.com/business-mileage-the-holy-grail-of-tax-deductions/
http://whitecoatinvestor.com/deducting-mileage-vs-actual-expenses/

Can a lease mathematically work out okay compared to a similar alternative-i.e. buying and selling a brand new car every 42 months? Sure.

However, I think both of those are stupid ways to purchase your transportation needs. If I didn't have $15-25K sitting around to buy a brand new reliable car, I wouldn't go out and lease it or finance it. I'd buy a $5K reliable car and drive it until I had $15-25K sitting around.

One thing I have seen work out okay with regards to leasing is when the practice/group gives you a certain amount of money each year, that you otherwise would not have, to pay for a lease.