General Question

marianamint's avatar

Is a NEW car tax deductible if you own a business?

Asked by marianamint (40points) October 24th, 2007

I just need to know if I can deduct my car payments!

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4 Answers

glial's avatar

You will probably want to depreciate it over a period of time. Say 3 years.

robhaya's avatar

Yes, you can deduct the payments if you lease the car. Leasing is probably a better way to go since when you lease the car its a business expense. And you can trade up to the newest model at the end of the least, as opposed to having to depreciate your asset over x amount of years. You really should talk to a CPA to find out what the best tax strategy is for your business.


cwilbur's avatar

It depends on whether you or the business is leasing the car, and whether it’s used only for business or for a mix of business and personal use.

Talk to your accountant. If you don’t have an accountant, you shouldn’t be trying this, because you will get in trouble with the IRS. Asking the world at large for tax advice is like asking random people on the street for legal advice—what you find out might be correct, but if you trust it, you’ll get burned more often than not.

marianamint's avatar

Thank you Wilbur. I do have an accountant, but I just wanted to have more data before asking him.

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