Leasing vs Buying a car for small business write-off

I have been reading some conflicting information regarding section 179 For businesses leasing vehicles. On the Bank of America website it states you can lease and use section 179 as depreciation and I also saw on another website regarding tax deductions.

I’m about to get a truck and want to make sure if I lease I can deduct it using section 179 as we had a really good year in business and it would be great to have a decent write off

You can apply section 179 to non-tax capital leases, which I don’t believe car leases count as. It’s something more commonly set up in heavy equipment leases, etc.

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The info on the this Toyota site is beyond confusing because they’re saying I can lease and use section 179

What does your tax guy/accountant say? Nothing else matters.

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I’ll have to ask.

What is your business? Certain fields like construction make it easier to write-off something like a truck versus a business where a truck is not necessary.

To clarify by easier I mean less likely to raise a red flag for audit.

For example if you own a construction business it’s easier to get away with writing off a leased truck versus a luxury car say for example a S Class.

Only your cpa/accountant can tell you what works best for your situation.

I flip houses for a living and am a general contractor so I guess I’ll have to ask a CPA

Truck should be an easy write off.

My dad transitioned from flipping to new construction and government contracts about 15 years ago but even back then him and his business partner were able to write off a couple of trucks.

Now it’s just easier to write off 2 “personal trucks via lease” and then buy new trucks for the foremen/workers every few years and write those off as a depreciating asset.

I’m trying to figure out if I can lease a truck and write off the entire cost of the truck in the first year or if I’m not gonna be allowed to do that.

You can’t do that on a lease. GO ASK YOUR CPA.

You can write off lease payments + maintenance + gas + insurance, per period, so for example 12 months worth of all of those.

But yeah talk to your cpa, your company’s income and usage may or may not be able to justify writing all of it off.

So for example even though the Tacoma isn’t rated at 6000 pounds can I get one of those over a tundra and still write off the payments etc?

I don’t think there’s any weight rating stipulations on lease write off… but again I’m not a cpa :zipper_mouth_face:

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Why do you insist on getting an answer to a complicated tax question in a discussion forum from non-tax experts who have repeatedly ask you to contact a tax pro or CPA?

FWIW,. Below is my previous post…hope it helps.

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You can write off a tricycle if it’s a legit business expense. The 6000 pound limit is for doing accelerated depreciation on a purchase. Has nothing to do with a lease.

But seriously, talk to your cpa.

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It’s a tax loophole in how depreciable assets are deprecated, where you can accelerate 100% into year 1 for FARM EQUIPMENT (which trucks and SUVs over 6,000lbs can qualify for).

Still

:point_up:t2::point_up:t2:

Nobody on a message board has enough information to answer this for you. Legal entity type? Cash vs accrual? What depreciable assets are already on your balance sheet? Etc.

And if OP is running a business, considering this, and doesn’t have an accountant: my priority would be finding an accountant with whom to have a relationship before I worried about accelerating 5-figures of depreciation (assuming your fiscal year is also calendar year, it’s only July).

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From my own experience, it is much more convenient to buy the car not only for the job but also for personal needs.
Obviously, in this way, it is more expensive but it is worth it.
I did the same and then I got hired for 2 jobs to be able to pay the money rates for the car.
I came across the second job by chance on themoneymix.com and it piqued my interest and I thought it would be nice to at least try. It’s good that I was brave and I found a way out of the situation and now I have enough money for personal needs and to pay the rates for the car.