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Large expenditure for tax help, Welcome
Who are you?? How do I get in touch with you?? email?? phone??
My name is Jeff
Hi There, Sooner,
You have posed an interesting question here.
Looking at the personal funds for purchase side of the issue first.
You would only be able to take the mileage or actual expenses on the 75% business use. They would be reported on Form 2106 as an itemzed deduction subject to the 2% floor. So your tax benefit would be somewhat limited.
If the purchase and title was in the company name, then all expenses (direct or mileage) would be deductable for the business P&L. The 25% personal use would be added to your personal salary as taxable income to you but till expensed to the company.
I have assumed that your business is incorporated or an LLC. In the event of an LLC the personal use would be added on to the pass through income to you and then subject to income and self employment tax as an LLC member.
To determine the best of the alternative you need to run the numbers for each to decide. You account ought to be able to help with this decision analysis.
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I am a small business owner of a manufacturing company. I am considering the purchase of a new vehicle to use for company use. The vehicle will be used for about 75% business and 25% personal use. My business grew about 30% in 2008 and wanted a way to use a purchase for a expenditure that would help me at tax time. Would I be better off buying the vehicle through the business or just purchase with personal funds and keep mileage for a deduction.