Reply With QuoteI'm not a tax guy...but...
Buy it personally, then lease it back to your company...take the depreciation as a tax write-off.
Also, write off the lease as a business expense for your company.
Ok....I have a question or two for somebody.I have a small side buisness that is getting big enough that I might have to go full time with it.I need to buy another work truck(pick up) but I dont know which way I should go about it.
Is it better to lease or buy for buisness reason's.If I lease can I still get a good rate on a used truck or would it be better to get a new one.On a lease can I write off(for taxes)the entire payment for my buisness or just a portion? Would it be the same way for a buy? I should try to write off as much as possible right? Im thinking my overhead in truck payments would be lower if I leased,correct? Would it be stupid to try a lease on a used truck or is the money factor # lower on a new one?
Its basically a few different question rolled into one there! My buisness is at the point where I need to go bigger and fully at it or just stay small.I want to make it bigger but need some small guidance.....
Can somebody kick me into the right direction or give me some enlightment here?
Thanks,Johnny Rocket
I'm not a tax guy...but...
Buy it personally, then lease it back to your company...take the depreciation as a tax write-off.
Also, write off the lease as a business expense for your company.
Johnny, Leases used to be the way to go. Right now is almost the same to lease or buy with the same down payment. So I would buy. Leasing only makes sense if the monthly payment is much cheaper with the same down. The write off question depends on your business status. If you are incorporated, and what kind of corporation it is. Talk to who ever does your books. If you are a S corp it should be no problem to write it off.
Congrats on the small business becoming a medium size business.
[ January 05, 2003, 07:01 PM: Message edited by: OutCole'd ]
why would the owner of Force just now need a Pickup Truck ?? OHHHHH you said it's for your NEW side business....... ohhh - k
Charley:
why would the owner of Force just now need a Pickup Truck ?? OHHHHH you said it's for your NEW side business....... ohhh - k
Ok the buisness is very small,but in a matter of 6 months it will be my main income.If I buy and lease it back to my company how does that work? I've heard of it but havent done it.
This buisness is going to be my main income(hopefully).I can hide all the money,like I have been doing(I hope Uncle Sam's not in here!!! LOL)but I would like to show some profit and loss's for credit and future things.I get killed every year on taxes as it is.So I dont want to get killed with my new buisness.
Ive never started a buisness by the books so any help I can use.
Well besides my boat company that kicks ass(that was for you Charley)
Thanks Johnny
Charley check your PM..
im a small buisness owner and i have bought all my trucks. i put alot of miles on mine so a didnt lease. i can write off depreciation and payments. this is the only way i have done it so if there is a better way im all ears.
I have to agree purchase them. I have bought all of my vans. You will have soooo many other things to worry about other then mileage and the other stuff. If you buy it you can sell it when you want..
WW
Jrocket:
Charley check your PM..
and HH has a good idea but be careful... I have to file 2 tax returns every year...business/corporate and personal .... if you buy it personally and lease it back to the company you should write a company check every month to yourself personally..... the problem is you will have to justify the income (that monthy check) as income... offset of course by your payment....IMHO buy the truck and depreciate it.... true loopholes are almost non existent anymore... the only way to get an upperhand on uncle sam these days is to buy yourself a cash business (bar,carwash etc...) at that point it's possible to get away with a little something..... otherwise just pay yer dues... wink
Charley:
..and HH has a good idea but be careful...Hey...I never said I would do it...
jrocket = Al Capone?
PS- If the business goes south, at least they can't take the truck...
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