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I have my own S-Corp - and I'm curious about designating one of my cars as a company car.

I purchased it in March(as a personal car which I used primarily for business). So the Title, etc.. is in my personal name.

I've realized that I have been steering so clear of tax Evasion that I'm missing many legal opportunities to avoid taxes - I think this is one of those 'I've been to cautious' areas.

Is there any way I can get this car into 'company owned status' and how would I make this a tax benefit - can I just submit an expense report to my company for a car? I doubt it - you probably can't just expense its purchase(about 14,000).

If I decide to just sell this privately and get a 'new' company car - is leasing the only way to expense the cost of having the car? If I purchase the car - I can't expense payments - what if I pay cash for it - I guess I'd have to depreciate it.

Please give me some really basic answers if possible - and then point me toward a nice complicated IRS publication for some fun reading.

Thanks,
Helter

before you ask - Yes, I have a CPA - I should probably just talk to him - but I prefer in that relationship to go into the conversations with a strong understanding of how things work to make sure he's on the mark - we haven't worked together that long - so I'm still wary.
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Is there any way I can get this car into 'company owned status' and how would I make this a tax benefit - can I just submit an expense report to my company for a car? I doubt it - you probably can't just expense its purchase(about 14,000).
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You would need to title the car in the corporate name which may generate additional sales tax/ licensure costs etc. IE - sell the car to the corporation at FMV
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If I decide to just sell this privately and get a 'new' company car - is leasing the only way to expense the cost of having the car? If I purchase the car - I can't expense payments - what if I pay cash for it - I guess I'd have to depreciate it.
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Leasing versus buying - the endless question.
Each situation must be analyzed for its own merits. I'm afraid there is no such thing as a pat answer here. So much depends on miles driven, cost of car, cost of upkeep, Gross vehicle weight rating, etc. You need to get your facts together and have your CPA look at the numbers.

FWIW - I think leasing stinks. If you ever commit to a lease from what i see you will most likely be stuck in that rut for the rest of your life - an endless stream of rental payments and then every three years another 2k down payment.

By an economical auto and drive it for several years - I think you will find that after taxes you will be much better off financially.
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before you ask - Yes, I have a CPA - I should probably just talk to him - but I prefer in that relationship to go into the conversations with a strong understanding of how things work to make sure he's on the mark - we haven't worked together that long - so I'm still wary
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Why did you pick him if you dont trust him?


Pete




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<<before you ask - Yes, I have a CPA - I should probably just talk to him - but I prefer in that relationship to go into the conversations with a strong understanding of how things work to make sure he's on the mark - we haven't worked together that long - so I'm still wary
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Why did you pick him if you dont trust him?>>

I'm not sure that "trust" is necessarily the issue. An informed consumer is a powerful consumer...regardless of what is being consumed. And that goes for tax preparation issues (at least in my opinion). The BEST clients that I have are the ones that have at least a passing notion of how the laws work in their particular circumstances.

I once had surgery. I "trusted" my medical professional. But you can be damn sure that I read everything that I could find about the procedure, and discussed the procedure with my doctor in great detail before having it done. For me, it wasn't a trust issue. Just a knowledge issue.

TMF Taxes
Roy
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