Y2K model cars speed into showrooms this month, sparking aburning question: Should you buy or lease your business car?Leasing may be the more affordable avenue, but it leaves you withnothing at lease-end. Tax implications may help you determine whichalternative is best.
If you buy a car and use it for business purposes, you mayrecover part of its cost through annual depreciation. The amount,however, depends on the method of depreciation used, the cost ofthe car, the year it's placed in service and the percentage oftotal mileage that's for business. For cars used more than halfthe time for business, an alternative to the common deduction (theModified Accelerated Cost Recovery System, or MACRS) is theexpensing deduction (Section 179 of the Internal Revenue Code),which replaces depreciation the first year, according to theAmerican Institute of Certified Public Accountants (AICPA). Anypart of the vehicle cost not recovered through first-year expensingcan be recovered through depreciation deductions in subsequentyears, the AICPA notes.
When Her Parents' Restaurant Burned Down, This First-Generation Founder's Hot Sauce Brand Rose From the Ashes to Take on Corporate Giants
Not Hitting Your Goals? Here's How to Know If You Should Change Tactics or Strategy.
You Can Generate Your Own Viral LinkedIn Post With This Hilarious Tool
This Couple Lost Everything When the Housing Market Crashed. But Manifesting 'Magic' Helped Them Launch a Metaphysical Brand With 10 Stores.
The Best Software Solutions and Tech Providers in the Franchising Industry
This 18-Year-Old Student Wanted a Better Way to Keep Track of His School Work. So He Built an App — and a Business.