Personal & Business Car Lease Option

[Stephen Torti]

Hello Off-topic Bp!

So for years I've always subscribed to you only drive what you can afford, meaning don't F-ing lease.  However I've been influenced a lot lately to consider the tax-write off lease option, especially if you use it for business.

So it may be more of a question for a CPA but what is there anyone that can shed a little light on this?  My situation:

I use my car for sales about 15k miles /for business and 5-10k for personal

I write my business miles off of my taxes which is a nice break on the W-2

My company gives me $400 /mo tax-free for use of my car

I would like to be able to write my car off on my RE business (not set up yet though, thinking to start 2017 this way)

Also, personally I don't see how putting a down-payment on a lease would ever be worth it, that's just like burning money to me so this is assuming I'd put $0 down and everything mechanical would be covered with the lease... I understand the payment will be higher because of miles but that's OK if it's a write off.  

Thanks in advance,

Steve 

[Brandon Hall]

@Brian Gibbons thanks for the tag!

@Stephen Torti is really depends on the extent of your real estate activities and how you are structured. Unless you are flipping/developing or operating an S-Corp, I'd stick with the standard mileage rate deduction rather than getting into other complicated strategies. Keep it simple while you build a foundation.

If your real estate business is already operating and is large or growing quickly, then tax planning with a real estate CPA is highly recommended.