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Some questions on purchasing a business auto Archived From: Finance

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   posted: Apr. 15, 2008 @ 3:37p
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I am attempting to purchase an auto through my business. The name of my business is simply my name with LLC after it and I will be the only driver (and only employee of my company). I also have another car that I will be keeping as my "personal" car.

1) In order to secure an auto loan, can I do it with a regular auto loan (e.g. - PenFed, etc) or do I have to get a small business loan? If it's a small biz loan, who has good rates?

2) I know that I title the car in my business name, but do I also need a separate car insurance account under my business, or can I add it to my other car and come tax time, separate out he business portion of my insurance payments?

3) Any other issues I need to be aware of? I know documentation of mileage, costs, and business usage is key, but any other pitfalls?

   posted: Apr. 15, 2008 @ 3:37p

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   posted: Apr. 15, 2008 @ 4:01p
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I'm not a CPA, but I believe you can only take either the mileage deduction OR the car related expenses (lease pmt, gas, etc), but not both.

Best to check with a tax pro before you make a move.

   posted: Apr. 15, 2008 @ 4:19p
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You can buy, borrow and insure it in only your personal name, if you're unable to do it in your LLC's name. Doing so will have no effect on your ability to deduct it as a business expense, provided you actually use it for business, and keep good records of mileage and expenses.

Also, if you have a lot of profit from your LLC, you might consider buying an eligible SUV or truck. The IRS will allow you to fully depreciate the value of certain SUV's and trucks in the first year. Done properly, you can (almost) drive an SUV or truck for free.

   posted: Apr. 16, 2008 @ 9:14a
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ifyouhavetoask said:Also, if you have a lot of profit from your LLC, you might consider buying an eligible SUV or truck. The IRS will allow you to fully depreciate the value of certain SUV's and trucks in the first year. Done properly, you can (almost) drive an SUV or truck for free.This is something that I have never understood. Could you please explain to me how accelerated depreciation makes the vehicle free or even almost free?

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