RSfizzy

and I was wondering what characteristics I had to fulfill in order to qualify for this deduction.

- Do I have to put certain mileage per month? (aside from the lease agreement mileage per year)
- Am I restricted to just owning this one vehicle?
- Is this a smart option for those of you who are doing this right now?

TIA

Bob W.

I don't know all the rules and details, but I know it's worked out well in my situation.

RSfizzy

doing with this so I can get a good idea of what I am looking at (cash/finance or lease) when my car comes.

Bob W.

and the miles between your home and primary office don't count. in my case, I travel between my main office and 3 satellite offices, as well as various hospitals (depending on the day). the car is leased and registered in the business' name, the company writes checks for the lease and insurance payments every month, and I have a company CC for gas. they're all business expenses, much like office supplies, rent, etc.

dxben

Talk to your accountant, you don't want to make a mistake on how you do this

Don@STaSIS

which is your "daily driver" and the RS4 can have the mileage and depreciation written off on. You can also maybe claim on payments. Talk to the money men and they can confirm.

Cheers,

McGyver

I believe she averaged ~ 40% business-use over ten years. So, leasing worked out pretty well for us. The car was in our name (not the restaurant's) and I made all the lease payments, maintenance, registration, insurance, etc., all of which were deductible at the 40% business-use rate. With respect to miles driven from home to the place of business, Bob W. is correct. Upon audit, you may have to produce a driver's log of your miles driven.

DrGP

This can be a very broad interpretation. Going to the post office. Picking up supplies. Going to meetimgs will suffice. Secondly you will have to justify at least 50% business useage or you cannot take the deduction at all. Also comuting to and from work is not deductable mileage. BUT, you can legitimatize your commute if you say you are going to th poat office nearest your home to and from work(set up a PO box if you really want to get technical0. Then the comute to the first business stop(the PO )and the commute from the PO to home is the only non deductable mileage. You can keep a log but it is not really necessary. At a seminar that I recently attended, the advisor recommended an agressive deduction on the car. His rationale was that it will only be disputed if you are auditedand ONLY for the year of the audit. If the Irs feels that the deduction is overstated, you may have to pay them some money, but only for the year of the audit, Not the other years that you have taken the deduction. Chance of audit is low, so they recommended being agressive on the auto deduction. BTW, you cannot deduct the entire cost of the lease paymen. There are limitations. Just erpeating what I learned amd was advised by some pretty sharp guys about 3 months ago. Take it for waht it isan d realise that it might not apply to your situation.

Snark

My accountant has me logging any business miles I drive (and back and forth from home doesn't count...but going to the airport for business travel does). Each month we deduct the percentage of that month's total miles that were business travel as an expense. The rest of the lease payment is recorded as compensation.

For example, if I drive 1000 miles in a month, and 300 of them were for business, then 30% of the $1500 lease payment, $450, is deducted as an expense. The remainder, $1050, is recorded as income to me.

I hope that helps but, of course, your situation may vary.

DrGP

Unless that has beeen changed recently. If you take a 49% deduction, the entire deduction will be disallowed as I understand it.