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Discussion Starter #1
how does writing your LEASE off your company's taxes work exactly? what percentage can you generally write off?can someone please explain!
thanks
Giandu
 

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Discussion Starter #3
I want to lease a BMW through BMWFS and i have my own company. How can I write off the amounts off the taxes I pay?
hope this is clear.
thanks in advance
Giandu
 

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If you use your car specifically for work related travel you can dudect the cost of the car for that year off of your taxes. or a percentage of it...not sure the exact numbers.

Chip-
 

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It's been a while since i've checked this, but from what i last remember, vehicles that exceed a certain gross weight (~6000lb) are eligible for i believe 24K in deductions against your additional depreciable amount. I think for other cars, the maximum depreciable amount is just over 3K a year

A few examples fo cars that would give u the 24k deduction are:

Escalade
Excursion
Suburban
Range Rover
Navigator
etc. etc
 

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StreetTrixE4six said:
i'm allowed to write off 90% of my lease
how much can u get back ???
 

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You don't get any money back, you just take that 90% and subtract it from your total earnings for that year and just do your taxes based on that new, lower number.

Chip-
 

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Yes, you can write off your lease. If you use it for both company and personal use, then you need to keep a mileage log of company miles. The percentage of company miles you put on the car is the percentage of the lease you can write off. This amount is subtracted from your company's income. So, basically, you are going to get back about a third (depending on your tax bracket) of the company percentage of the lease amount.

The same rule applies if you are financing your car except only the loan interest applies.
 

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You should go to the irs.gov website and download the tax booklet on small business. It has more detailed information on this. That's what I did when figuring out how to write off part of the bimmer.
 

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carguy84 said:
You don't get any money back, you just take that 90% and subtract it from your total earnings for that year and just do your taxes based on that new, lower number.

Chip-
yeah, like chip said. If i made $200,000 last year, and my car payments were 600/mo. that would be $7,200 in payments. 90% of that would be 6,480. instead of having to pay taxes on $200,000, i'd pay taxes on $200,000 - $6,480 which would be $193,520. Then you have your dinners, lunches, gas, insurance, furniture, office supplies, etc.. and it really starts to add up :D
 

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it's a usage.
and unless everyone is an accountant here (which is usually the case on BMW boards) you should consult an accountant.

My own accountant told me the following:

You can do one or the other - depreciate the car based on mileage, repairs, etc.

Or write off the payments.

One or the other is more economical. Your situation has to be examined on a "personal" level before you make any call to the BMWFS and sign any documents.
 

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If you do use your auto 100% for business, and was placed in service after 12/31/99 but before 1/1/02, then you can depreciate 3,060 in the first year, 4900 in the second, 2,950 in the third and 1,775 in the fourth. These are maximums based on 100% usage. If not 100%, the limits must be reduced to reflect the actual percentage used. this in addition to gas, oil, tires, repairs, insurance, parking fees, tolls, licenses, interest, and garage rent may be deducted up to the amount of use. hope this helps
 

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What I did was this..

I wanted to buy the car but financing a luxury vehicle through a business has little tax benefits b/c of the max dep. amounts.

I leased my 03 M3 but put just about the minimum money down and created a balloon lease that gives me a very high monthly payment which about 90% gets written off. At the end of the 42 mos. I have a $17,000 (versus the normal $37Kish) buyout so I will walk in and put $9,900 in cash on the 17 and have a tax liability of only $8900. Now if I want I can finance the car on the whole or part of the 17k and write off that interest as well as take my depreciation.

I had done the math just about every way and this results in an overall savings over the course of a loan w/ taxes included of over $8000.00:pimpin:
 

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StreetTrixE4six said:


yeah, like chip said. If i made $200,000 last year, and my car payments were 600/mo. that would be $7,200 in payments. 90% of that would be 6,480. instead of having to pay taxes on $200,000, i'd pay taxes on $200,000 - $6,480 which would be $193,520. Then you have your dinners, lunches, gas, insurance, furniture, office supplies, etc.. and it really starts to add up :D

Actually, if you write off the lease payments, you can't deduct your gas anymore.

I'm not an accountant, but I play one on TV...
 

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AlexRDI330ci said:



Actually, if you write off the lease payments, you can't deduct your gas anymore.

I'm not an accountant, but I play one on TV...
Why not...I do


two words...........CREATIVE ACCOUNTING
 

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you can still write off gas, gas does not get capitallized but rather is expensed from the get go at the irs standard mileage rate of .36
 
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