Buy or Lease new business vehicle? what are you doing?

[Adolf A.]

What is your strategy for your business vehicle?

I have an LLC for my rentals and a S-Corp for my flips. My wife and I work full time across both. Currently we deduct the std mileage. Now are cars are getting old. Time to rethink the cars / tax strategy. Down payment and cash flow are not a problem.

We desire "higher end" cars (not trucks over 6000 lbs.). My challenge (question) is "do the depreciation rates make sen$e" to buy a high end business vehicle..(Telsa X? ...that has little operating expense/maintenance).

Second challenge is the exit strategy (lease...easy, just walk away) vs. (buy/depreciate...gain or loss).

Appreciate your wisdom!

[Cory Binsfield]

I buy slightly used vehicles with warranties and run them through my business so I don't have to deal with standard mileage deductions. My CPA runs them on the tax return in my corporations.

I'm not a fan of buying a vehicle for a big deprecation deductions and I never lease since it doesn't make economic sense.

Frankly, a vehicle takes money out of your pocket so it doesn't make sense to me to spend more to get a big deduction. My plumber's CPA advised this for a a last minute tax deduction. I told him he is better off buying a rental property or opening a SEP IRA for the deduction since the big truck he was looking at was $45,000.

It's crazy how some people justify spending $45k on a shiny object and think it's an investment when it's an expense.