- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
S corp car question..
Posted on 5/8/24 at 3:53 pm
Posted on 5/8/24 at 3:53 pm
i want to actually lease a car through my business instead of just deducting my mileage on my personal vehcle. i figured i can put a large payment down and get a nice comfortable payment going forward and write that off.
i was thinking of selling my camry for around 13k and putting that in our checking account and using my business funds for the down payment.
then i realized that if i do that i would not be able to run to the store, run errands or travel on my guy trips because none of that is business. that would be unethical.
so now im wondering if i should just keep my camry as a third car and use that when i want to do anything that isnt business related.
but then id have to pay for plates and taxes for the camry to possibly sit in the driveway most times.
am i thinking too hard?
This post was edited on 5/8/24 at 3:37 pm
i was thinking of selling my camry for around 13k and putting that in our checking account and using my business funds for the down payment.
then i realized that if i do that i would not be able to run to the store, run errands or travel on my guy trips because none of that is business. that would be unethical.
so now im wondering if i should just keep my camry as a third car and use that when i want to do anything that isnt business related.
but then id have to pay for plates and taxes for the camry to possibly sit in the driveway most times.
am i thinking too hard?
This post was edited on 5/8/24 at 3:37 pm
This post was edited on 5/8/24 at 4:00 pm
Posted on 5/8/24 at 3:56 pm to bleedsgarnet
My accountant put me on a hybrid S/C corp years ago.
If you like your accountant, they can put a suggestion to you for you to ask your attorney to create this caveat for you.
If you like your accountant, they can put a suggestion to you for you to ask your attorney to create this caveat for you.
Posted on 5/8/24 at 4:13 pm to bleedsgarnet
quote:
then i realized that if i do that i would not be able to run to the store, run errands or travel on my guy trips because none of that is business. that would be unethical.
you are supposed to log your personal miles or business miles and then pay the company back for personal use. there are a few methods of determining what this would be.
another thing to think about is that your business insurance coverage on the vehicle may be way more expensive than you think. You may want to quote that out and see how it falls. I would consult with your business insurance agent and cpa to find out what makes sense.
This post was edited on 5/8/24 at 4:15 pm
Posted on 5/8/24 at 5:20 pm to bleedsgarnet
How many business miles are you driving a year? Most leases have a 12-15K annual mileage allowance and then it get expensive. Have you considered insuring a commercial owned auto is more expensive?
I always came out ahead deducting auto expenses by mileage than actual expense. Keep in mind I would have around 30K miles per year.
I always came out ahead deducting auto expenses by mileage than actual expense. Keep in mind I would have around 30K miles per year.
Posted on 5/9/24 at 5:49 am to bleedsgarnet
We have a company car. We use it for personal use. We have a commercial policy that allows personal use, but it is much more expensive than a personal insurance policy. I recently spoke to my CPA with a similar concern. He recommended my payroll company add a line item in the W2 to account for the car. We estimated personal use at $1000/month.
"It would be taxable earnings that would be listed as “personal use of company car” on box 14 and would be added to box 1, 3, and 5 of the W-2."
"It would be taxable earnings that would be listed as “personal use of company car” on box 14 and would be added to box 1, 3, and 5 of the W-2."
Back to top
Follow TigerDroppings for LSU Football News