Wheels
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I live under a bridge near the office. No need for a nice leased car, just a short walk down the shoulder of the freeway.
Oh, I don't know. There are several cars that I wouldn't mind driving for a long time http://i48.photobucket.com/albums/f213/Lugnut67/49roadmaster.jpg Not mine but I wish.true, but who wants to drive the same car for ten yrs? Man that’s no fun if you have the jack to lease a different one every 3.
This one is mine that I'm restoring http://i48.photobucket.com/albums/f213/Lugnut67/blazer1.jpg And this one WAS mine but I sold it http://i48.photobucket.com/albums/f213/Lugnut67/fordside.jpg Kind of wish I still had it. I'm off for the rest of the week...Going to Reno for Hot August Nights!!!
here’s the deal. I’m looking at a 2008 E350 Benz with 8k miles p1 pkg, sports pkg, blk ext and tan int. $43900. I think I can buy for 42900 with mfg warranty plus another 50k/5 yr certified warranty. I plan on buying it for 42500. good deal?
here’s the deal. I’m looking at a 2008 E350 Benz with 8k miles p1 pkg, sports pkg, blk ext and tan int. $43900. I think I can buy for 42900 with mfg warranty plus another 50k/5 yr certified warranty. I plan on buying it for 42500. good deal?
Check the PM I just sent you.
[quote=Indyone]Absolutely. You can depreciate your vehicle, SUBJECT to luxury limits and and a useful life determined by the IRS. How would you like the IRS saying your car is too nice so you can only depreciate a portion of $25,000, instead of the full $50,000 it costs? Depreciation rules suck, so I just decided to avoid them altogether with a lease.[/quote]
How about expensing the car expense via IRS mileage allowance… IF you lease a car for $400.00 you can only deduct up to 400 X 12= $4,800.00 a year. If you drive substantial miles for business (at $0.485 per mile) you will make out alot better than leasing the car. Depends on how much you drive…
Rugby, when all expenses are considered, it's going to be a rare day when IRS standard mileage beats actual expenses (and BTW, your IRS rate is old).
Indy-
Perhaps you are right with gas prices, etc. I do see the new rate went up to just .505. Consider these (2) examples:
Car 1 (Lease)- Leased car…$350.00 per month and drive 15.000 miles a year for business. Car gets decent MPG (22). You write off the lease payment , gas costs, maint. & repairs. A new car should have very little maint. costs in the first 30 - 40k miles. What is your write off? Approx $7,000.00? Allowing for gas, light maint. etc.
Car 2 (Purchase)- Purchase a car (purchase outright or finance at 1.9% likes most of these automakers are doing). Write off is approx. $7,500.00. (15K business mies @ .505).
Example 2 at least your payments are going towards owning the car. You can still get a decent write off with standard IRS deduction, but do need to drive some business miles . What about property tax deduction on lease versus buy? Interested in your opinion on these scenarios…
Rugby
#1, I’ll repeat an earlier assertion…leasing is much more appealing for a business owner over an employee.
On current mileage rates:2008 IRS Mileage Rate posts increase over 2007 rate of 48.5 cents
The 2008 IRS mileage rate for business use is:
50.5 cents per mile from January 1 through June 30 58.5 cents per mile from July 1 through December 31, 2008The depreciation limits for OWNED (vs. leased) cars completely sucks. See link:
http://www.finance.cch.com/text/c60s15d625.asp Finally, on your write-off example on car one, you forgot insurance and license plate fees (which you later referenced). Also, maintenance writeoffs are very broad. I include detailing costs...pretty much anything to do with maintaining a car. The last thing is, you're not going to get much of a car for $350/month, IMO. At that level, buying may make more sense. My lease payment is about $480 give or take (don't have the number in front of me). After taxes, it costs me just a bit over $300/month, which in my mind, is a pretty cost-effective way to drive a brand new Chrysler 300, particularly when my fuel and other associated costs are also tax deductible. There's no question in my mind that when I tally all costs, it's more than even 58.5 cents per mile driven for me. Every situation is unique, and if I were driving 30,000 miles a year, the math would be considerably different. For the record, I have never leased a personal (non-business) vehicle and I doubt if I ever do unless the math changes considerably. A personal vehicle, driven a few business miles each year is not lease material IMO.my cpa says there isn’t much difference between leasing and buying a 30k car from a tax standpoint. he takes about 70% depreciation on my car for business use. he then treats my auto expenses (maintenance, gas, taxes, registration,etc) at 70% as an expense. he said if I buy a more expensive car, say 40k than it might matter a bit.
He says if I were to lease one he would treat it the same way. is his thinking wrong? Indy, you don't have a problem renting your car and having nothing to show for it in the end?ez,
Your CPA's thinking isn't wrong. If you use the car 70% of the time for business, then that's what the write-off should be. Almost no vehicle is 100% business, claiming that could be getting too greedy and send up a red flag for the IRS. I think it's personal preferences when it comes to leasing or buyinig. I would prefer to own rather than rent.[quote=iceco1d]
As far as the car goes...personally, I'd get the SLK350, or the SLK 55 AMG, over the E350; but that's just me. [/quote]I think he is a guy not a chick so the SLK is out lol!
[quote=skippy]Hey, I like the SLK - as long as it’s silver or black. [/quote]
Small 2 door vert=chick car
Z3/Z4, Miata, SLK…etc etc
Where I am from Mercedes are as common as Chevy’s and SLK’s and Z4’s are mostly driven by Housewives…very odd to see a straight male driving one lol!
[quote=iceco1d]Yea…SLK 55 AMG is a chick car.
5.5L v8. 400+ whp. 19" Rims. I think I'll get my wife one...[/quote]AMG's are nice, juct can't get past the 2 door roadster thing. I certainly wouldn't get one for my wife...BTW my wife has a 700+ RWHP car, so she would think a 400 Hp car is for sissy's lol...
To each their own... CLK AMG...if anything, if you want a 2 door..if a Mercedes is your thing. Really I would go minimum of the E 63
Oh BTW the SLK AMG has 360 hp at the motor...so that is probably about 300 at the wheel...not 400 :)