I have a LLC company and want to buy a new car. I was thinking I could save some money by putting it in my business name since I will only use it for business use. Would I be able to write the lease payments of as a business expense or if I buy it could I write off the entire cost of the car? It is a $55k car and no I still have no CPA to ask at this time :-(
I also am an LLC. I don't know about how leasing would work, but I did buy a new van for my company this past summer. My accountant says I have to depreciate the cost of it over a five year period. In other words, I have to spread it out over five years. As far as day-to-day expenses, you can either keep track of the mileage and then claim that X (times) whatever the government allows per mile, or you can keep track of the cost of gas, tolls, repairs, etc. and claim that, but not both. Jim
As Jim said but you would really need to speak to your accountant - DP forum is not the best place for professional advice of this nature.
Yes, you need a CPA at least, since it's quite a sum of money that you could save or loose. But I think that leasing a car would allow you to write the costs off entirely, assuming that it's only for business. A CPA is not as expensive as a lawyer, I believe...
You can write it off entirely....but it can't be done all in one year. It has to be depreciated over at least 5 years. As far as an accountant....if you are at the LLC stage, you should have one. Remember, they only charge for the forms they have to file for you....and, consultations if you need them. This year, it cost me $350 to have my accountant do my taxes, but it was worth every penny. Jim