I have heard that if you lease your vehicle that you can take a 100 percent deduction instead of the standard if you buy is this true?
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Buying or leasing
- Thread starter DavidMelbourne
- Start date
>I have heard that if you
>lease your vehicle that you
>can take a 100 percent
>deduction instead of the standard
>if you buy is this
>true?
The advantage to leasing is two fold, first the advantages
yes it is a complete write-off as a deduction, the payment may be deducted from your Gross income on Sch C.
You may also take Mileage standard deduction if it is a "A, B or C" Unit, this item was just passed this past year for the filing of your 2000 tax return..
or you may take actual expenses on the vehicle, fuel, maintinance, tires, insurance, etc.
Disadvantage,
a. Your really not the owner but you have to keep it up to par.
b. Maxumun mileage allowance from leasing company per year. if your mileage is only 100,000 miles max over 3 years. which if your in this business you can put on 100,000 in one year, then your pay for excess mileage.
c. Must be in same or as close as possible shape to New as you picked it up otherwise you pay for repairs to it.the slightess nick or scratch they get you for, (read your lease carefully and between the lines.) less normal wear and tear on end of lease.
D. If you decide that it is two costly to run and cannot afford to pay your payment each month, you are still held liable for the complete term of the lease, the same as owning the truck, but then you have to purchase a vehicle for yourself and you have the lease payment still hanging over your shoulder. plus your own vehicle payment, then try and buy a new truck.
Truthfully, I would not purchase a brand new truck, that is if you have never been in expediting. either work for an owner or purchase a used truck maybe 2-3 years old, and this way you get a feel for the business and what its going to cost you out there.
I dont know whats going to happen with the price of fuel the way its going up up up, and the surcharges the companies are charging and rates are not high enough to possibably support a D unit right now. but Check it out
>lease your vehicle that you
>can take a 100 percent
>deduction instead of the standard
>if you buy is this
>true?
The advantage to leasing is two fold, first the advantages
yes it is a complete write-off as a deduction, the payment may be deducted from your Gross income on Sch C.
You may also take Mileage standard deduction if it is a "A, B or C" Unit, this item was just passed this past year for the filing of your 2000 tax return..
or you may take actual expenses on the vehicle, fuel, maintinance, tires, insurance, etc.
Disadvantage,
a. Your really not the owner but you have to keep it up to par.
b. Maxumun mileage allowance from leasing company per year. if your mileage is only 100,000 miles max over 3 years. which if your in this business you can put on 100,000 in one year, then your pay for excess mileage.
c. Must be in same or as close as possible shape to New as you picked it up otherwise you pay for repairs to it.the slightess nick or scratch they get you for, (read your lease carefully and between the lines.) less normal wear and tear on end of lease.
D. If you decide that it is two costly to run and cannot afford to pay your payment each month, you are still held liable for the complete term of the lease, the same as owning the truck, but then you have to purchase a vehicle for yourself and you have the lease payment still hanging over your shoulder. plus your own vehicle payment, then try and buy a new truck.
Truthfully, I would not purchase a brand new truck, that is if you have never been in expediting. either work for an owner or purchase a used truck maybe 2-3 years old, and this way you get a feel for the business and what its going to cost you out there.
I dont know whats going to happen with the price of fuel the way its going up up up, and the surcharges the companies are charging and rates are not high enough to possibably support a D unit right now. but Check it out
the vehicle i am looking to lease is a 2001 with 10,000 miles on purchase price is 25% below the price of brand new .