Leasing a Vehicle as a Company - Process, Constraints & Personal Tax Implications

Ask the Hackrs
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22

Then what did you mean by this?

You are not being clear.

23

One more thing that my dad mentioned is that if you keep your business payments separate from your personal is that they can’t go on a “hunting expedition” with your bank records. For example, if your company gets audited, and my dad get a subpoena, he can only dig into your company bank records. But if you co-mingle, and make business payments from your personal accounts, now he has authority to also review your personal bank records, and who knows what he can find once he goes down that road!! He can also very quickly get a court order to easily garnish and pull funds out of any of your personal bank accounts too. Please don’t risk it just for a little added convenience!

24

  1. You mean a “fishing expedition” and not a “hunting expedition”

  2. Your statements about “they can’t do this or that” and prohibitions as to access to bank records, etc. if you separate business from personal records, accounts, etc. are not really accurate. The IRS can issue an administrative subpoena for pretty much anything from anyone for good cause while under review and then seek a court order if you fail to comply.

  3. If the review is part of a criminal investigation, then your statements about commingling and non-commingling are even less accurate as to what can be sought via a subpoena.

  4. I think you meant to say that “you might have less potential liability if you have fully separate business and personal accounts, etc.” That is not the same as saying “they can’t review personal records, payments, etc. if you have separate business records, payments, etc.”

  5. This is not legal advice

  6. See below:

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Good background @DailyDriven. Written with pedantic precision and no ambiguity like a good legal brief! :slight_smile:

If you have willful criminal intent, my dad say they will go after you as hard as the law allows. He told me the policy for the past 20 years is not give people a hard time for mistakes. (They actually have to consider the ROI, so they typically won’t spend $50K of government money to go after someone who accidentally didn’t pay a few thousand dollars, etc.)

But we’re talking about people on this board who are law abiding “Hackers”, trying to optimize their expenses and minimize their audit risks. You are 100% correct of course, that “Willful Criminals” will have no protection.

I assume from the way OP framed his question, he’s not trying to do anything too slick, and just wanted to follow the rules.

26

Well, I was just talking about what types of records the IRS may have access to, and not anyone’s intent, crimes, etc.

27

Why did you delete this post?

Edit: Not just deleted, but now it has vanished altogether?

:thinking:

28

Thanks everyone, I appreciate the discussion and insights on this! I’ve decided not to lease through the company, as it brings more hassle than benefit to me at this point.

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