[wolke9]

Can anyone out there currently self-employed or who uses their vehicle for business tell me why it may be advantageous to lease rather than buy a new BMW? I know you can deduct the mileage and whatnot on taxes. Is it more cost effective to lease vs buying when you use your vehicle for business.

I am getting into the Real Estate appraisal field soon and will be doing alot of driving for my work. Pros/Cons??? Any input would be helpful. . . .

[afocoryw20]

If your going to drive alot you should not lease due to the fact that the miles will add up very quickly and the $ you save will probrably have to be spent when you turn the car back in.

[espo]

Originally Posted by wolke9

Can anyone out there currently self-employed or who uses their vehicle for business tell me why it may be advantageous to lease rather than buy a new BMW? I know you can deduct the mileage and whatnot on taxes. Is it more cost effective to lease vs buying when you use your vehicle for business.

I am getting into the Real Estate appraisal field soon and will be doing alot of driving for my work. Pros/Cons??? Any input would be helpful. . . .

My father is a Real Estate broker in PA and he has been leasing Lincon Towncars for the past 10 years (Don't get me started on his choice of cars, we are definately of a different mindset on this one). The lease on the car is 100% tax deductable. I think that there are restrictions on something like a given percentage of the car must be used for business purposes, but being in the Real Estate business should easily meet the requirements.

Note that I am not a CPA and you should double check this with either the IRS website, or a real CPA.

[pharding]

You can deduct everything associated with the car, including lease payments, insurance, gas, car washes, incidental if any maintenance expenses, etc. However you need to talk to your accountant to review your circumstances for a definitive answer. Also some states tax the lease agreement on the total vlaue of the car. Some states tax on lease payments only.

[wolke9]

Thanks to all for your responses. I can hopefully make a "business" case to my wife for the 3

[Mangelo]

for anyone still wondering how leasing for business use works. I talked to a CPA relative and he told me that if you lease, you cannot take account the mileage or gas you spend, but you entire lease payment and insurance payment per month can go towards deduction. If you have 2 cars you can easily claim that you use your leased car for 100% business use and therefore all your monthly payments is going towards your income deduction. But for those who only have their leased car, they usually claim like 60 - 70 % business use and the rest for pleasure. But ofcourse talking to your own CPA is the best thing to do

[wolke9]

Originally Posted by Mangelo

for anyone still wondering how leasing for business use works. I talked to a CPA relative and he told me that if you lease, you cannot take account the mileage or gas you spend, but you entire lease payment and insurance payment per month can go towards deduction. If you have 2 cars you can easily claim that you use your leased car for 100% business use and therefore all your monthly payments is going towards your income deduction. But for those who only have their leased car, they usually claim like 60 - 70 % business use and the rest for pleasure. But ofcourse talking to your own CPA is the best thing to do

Thanks for the additional info. . very helpful. . .