View Full Version : Has anyone here written off a vehicle as a business expense?
07-16-2001, 03:44 PM
I was reading online that you can include an automobile as a business expense if you have your own business. I am interested in doing this because my car doesn't work and I need a new one, and I am also about to start a small business. Has anyone here done that before? What about those with legal or tax expertise? Thanks!
07-16-2001, 11:12 PM
My company wrote it off as a business expense. Apparently, they were only able to do this because I have another car in my name, it's a lease, and we're a corporation and had to make amendments to the minutes that I would be using the car for company business. From my understanding, it's not easy to do this if you're a sole proprietorship.
07-16-2001, 11:19 PM
Yep. It was easy. I just told them that it was my getaway car and it was essential for my career as a bank robber.
I just realize that I shouldn't have admitted that...
Anyway, the normal thing to do is to list it as a mileage charge (normally 28 - 35 cents per business mile). This figure takes into account gas, insurance, maintenance, and depreciation. If you do it some other way you will just run into a world of trouble (ex. when you sell it or stop using it as a business car, if it gets into an accident, etc)
07-16-2001, 11:47 PM
did it on the 2000 taxes. it was the easiest part of the whole friggin "i own my own bidness" tax form torturefuck. there's just a little box, you write in the amount you paid for the car, and that's it. you have to be careful if you also use the car for personal bidness, but if you have another car for personal use, and the write-off car is only for bidness, it's easy. But be sure to set aside a weekend if you plan on doing your own taxes... also, don't have kids, a mortgage, student loans, four different jobs, or live in three different states in the same year...
07-23-2001, 04:52 AM
Thanks everyone for the help. Welfare was that a lease or was it a normal purchase? I want to use my vehicle mostly for business but I know I will be using it for personal use as well. I will continue to research this and let you know what I found out. Thanks again!
07-23-2001, 08:47 AM
There was an article I saw somewhere on MSN last week that stated that in certain cases it's a lot better for tax purposes to buy a big heavy SUV rathter than a passenger car. This is because of a law that defines a truck vs. a car - a truck can be written off much more quickly than a car. The key is that the truck is defined as a vehicle over x number of pounds (sorry - don't remember the figure). If your SUV is big enough, it is by definition a truck, and is eligible for accelerated depreciation.
Did anyone else see that article? I meant to make a shortcut when I read it but never did...
07-23-2001, 12:44 PM
Basically states that you can use the auto for business & pleasure but only the business portion can be taken as a tax deduction. Means you keep an excellent record of when & how it is used and add it all up at the end.
Also, (quote from the site): "There are two methods of claiming expenses: You can either keep track of and deduct all your actual business-related expenses, or simply deduct 34.5 cents (in 2001) for each business mile driven. As a rule, if you use a newer car primarily for business, the actual expense method provides a larger deduction at tax time."
Hope that helps some. :)
I have written off my car for years now, as it is my work ride. Our accountant said I could write it off as a total, or I could write it off per the milage. She said I'd be better off writing the milage off and it factors out to be like .32 cents a mile that I get credited. That includes, gas, wear and tear, upkeep, ect.
Then of course, I actaully don't end up paying them 1/4 of that .32 in real savings. Still, I write off at leaste 5000 miles per quarter so it helps a great deal.
07-23-2001, 03:51 PM
My dad was thinking about doing this, but I think that there were complications, because if he wanted to write it off for taxes, he would need insurance that corresponds to that. Which means he's only insured when using the car for business purposes...=(
so, he never did it...dunno if that's really the case, but it seems like my dad didn't want to risk it...
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