Quote:
Originally posted by Shaun 84 Targa
We're looking at getting a company car. Possibilities:
Scion xB, giant toaster on wheels
Honda Element, "I pinch"
Grand Cherokee (most likely used, 2002+)
The first two are just nice lightweight haulers that get good gas mileage. The Jeep I can tow with too, and since we've got a vintage racer theme running through the T's, may try to do something creative with the 69 in terms of events and corp. sponsorship.
But from a tax/business perspective, which would be better, the lease or buy outright?
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You need to know how much mileage you'd put on the car every year; there's a large penalty for exceeding the mileage limits each year; you can't drive a lot one year, then make it up the next. If you drive within the prescribed limits, use it only for business trips, and nothing else a lease might make sense.
For primarily personal use, with occaisional business use, purchase makes the most sense in my opinion. No mileage limits, and you still get the depreciation on the "business equipment" if things are done correctly.