Any tax experts in here?

[enhanced]

The wife and I just leased a new vehicle yesterday. She runs her own business from home. We're wondering if we could use that vehicle for tax purposes for 15.

 

[RegisterJr]

Yuppers. At least, I believe so. Dunno if leasing it instead of owning makes a difference. Depending on state rules you may have to list it as a business vehicle with your insurance company. You have to here.

 

[peter01]

Yes. Most businesses lease as it is easier to document the cost of the deduction, however, they lose the ability to claim depreciation on the car. In my experience, the more important factor in your situation is the personal vs business use of the car.

If you have a second car, you can claim the new car to be 100% business use.

 

[bcazo]

Yes. Most businesses lease as it is easier to document the cost of the deduction, however, they lose the ability to claim depreciation on the car. In my experience, the more important factor in your situation is the personal vs business use of the car.

If you have a second car, you can claim the new car to be 100% business use.

This^^^ I also would add that if ever audited they may ask for you to produce a log of mileage and usage... It's happened to one of my clients.

 

[enhanced]

Thanks guys. She doesn't have an LLC yet. Does she need that to claim it?

 

[RegisterJr]

Thanks guys. She doesn't have an LLC yet. Does she need that to claim it?

I would think to be considered a business entity she would need a tax ID #, whether LLC or Corporation.

 

[puccah8808]

I'll ask my boss. He wants to CLAIM EVERYTHING AS BUSINESS!

Him: Oh, this pizza here is a business lunch expense!

Me: Nooooooo!!!!! O.O

 

[bcazo]

I would think to be considered a business entity she would need a tax ID #, whether LLC or Corporation.

It depends on the business.. For example if she was a realtor, or sales than no problem.

 

[enhanced]

She sells health & wellness products.

 

[puccah8808]

My boss has 2 cars and both of them are for business. One is a truck and the other is an Escalade.

 

[bcazo]

She sells health & wellness products.

I think your OK... I would just keep a log even if it's BS to an extent you should be alright..

 

[enhanced]

Thanks dude. I think we're going to pursue the LLC, just for a few extra tax breaks.