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4 Replies Last post: Oct 26, 2007 4:52 PM by smithw6079

How much realistically can I take off taxes for a vehicle in real estate?

Oct 26, 2007 3:45 PM

Click to view smithw6079's profile Start-up smithw6079 5 posts since
Oct 11, 2007
Can I take off the entire lease payment on a vehicle or is it a mileage thing?
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Click to view Ed O'Gee's profile Mogul Ed O'Gee 215 posts since
Oct 25, 2007
1. Re: How much realistically can I take off taxes for a vehicle in real estate? Oct 26, 2007 3:53 PM
Check with your accountant but you can't techically take off anything, but if you can prove that you used the vehicle for business purposes only, then you can apply the cost of the lease, gas, maintainance, insurance, and mileage against your business expenses, thus lowering your taxable income.
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Click to view akgold's profile Founders akgold 51 posts since
Jul 19, 2007
2. Re: How much realistically can I take off taxes for a vehicle in real estate? Oct 26, 2007 3:57 PM
Usually you have the choice if the vehicle is used for business. You can take the actual amount of the cost of the vehicle or take the mileage that you used for work.

Actual cost is much more detailed and there is also the depreciation factor for your car whereas miles is easy, you just add up the total number of miles that you drove your car and multiply it by the tax deduction amount per mile. With actual cost you total up all of your costs maintenance + gas + depreciation (or lease expense) + insurance and multiply it by the percentage used for business.

I am not familiar with the real estate field, but if it has the same rules of any business then you can select whichever method suites you best. Usually you can deduct more with the actual expense, but that involves a lot more record keeping.

Good luck!
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Click to view LUCKIEST's profile SCORE LUCKIEST 5,288 posts since
Aug 6, 2007
3. Re: How much realistically can I take off taxes for a vehicle in real estate? Oct 26, 2007 4:21 PM
Tell us more. Is this your real estate business?? Do you work FULL time in real estate??
Do you have an Accountant?? The tax rules apply to everybody in business and are not different for real estate.
If you lease a vehicle and you use the vehicle ONLY for business, then you can deduct the full lease,
including insurance, upkeep and maintenance of said vehicle.
However if you a vehicle and use it 50% of the time for business and 50% for personal use,
then you can only deduct 50% of the lease.
It is MOST important that you keep a log and good records
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Click to view smithw6079's profile Start-up smithw6079 5 posts since
Oct 11, 2007
4. Re: How much realistically can I take off taxes for a vehicle in real estate? Oct 26, 2007 4:52 PM
in response to: LUCKIEST
Thanks very much for the quick support. All were helpful. Everything seems to boil down to keeping accurate records. Dang, I was hoping there was a magic bullet. Thanks, everyone.
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