Business tax benefits

Business tax benefits

Confirmed my order a couple weeks ago and delivery is scheduled for end of September.

The car will be used 100% for business. How do I go about taking advantage of the tax benefits? I own the company and its an S Corp. I really don't understand any of it and a CPA I spoke with seems clueless about this.

Any help would be greatly appreciated.

jq5073 | August 26, 2013

Get a better CPA.

jq5073 | August 26, 2013

Seriously, though... I'm not a CPA, but my CPA is. You'll want to investigate this, but if you purchase the car under the business name, you likely will not be able to get the $7,500 tax credit. Luxury cars depreciate pretty rapidly, so it might not matter over the course of 3-5 yrs, but it bears consideration.

You could buy it personally and reimburse yourself by mileage (~$0.56 per mile) which would be pretty good considering the low operating cost of the vehicle.

Not sure what kind of CPA you have, but they should be pretty familiar with business expenses for vehicles. It's extremely common.

BG121 | August 26, 2013

@R0ckets, I have been working on the same thing. There are a lot of conundrums around the biz use for an S-Corp, namely sky-high insurance rates if you put it in the biz name and as @jq5073 mentioned, potentially not being able to take the $7500 tax credit. You should ask a good accountant about keeping it in your name but paying for all the expenses from the biz account and still claiming the tax credit and max depreciation.

Check out this thread for more info: