Which option is better in terms of tax write off.
I will be investing in a car (haven't decided on lease vs purchase yet). Want to understand the tax write off benefits of both and which is most advantageous for when I use the auto 70% for work / 30% private.
Thanks!
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Your decision to buy or lease your company car depends heavily on your budget, intended vehicle use, and the tax implications.
It will be better for your business to buy the vehicle due the following reasons:
When you purchase the vehicle you can deduct 70% of all costs related to the vehicle (since you indicated it will be used 70% for business). You will be able to deduct the interest you are paying every month (70%) if you take a loan on the vehicle. Loan payments are not deducted as loan payments, rather you take depreciation expense for the vehicle.
It will be better for your business to lease the vehicle due to the following reasons:
Every business is diferent, therefore I have listed the advantages of leasing or purchasing the vvehicle. Please consider the above information and make the the choice that best suits the needs of your business
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