posted 06-22-2003 08:30 PM                  

I need to lease something, so I can write off 100% of the payments every month.

Any other business owners/accountants on the board, please HELP if possible.

Anyway, I'm actally leaning toward leasing a Porsche Boxster. I can get one for 39 month contract with TipTronic (wife and I are both lazy) for about $450/month 12K miles a year.

Anyone know of any Prowlers that I might be able to strike the same deal with?

Also, if anyone can tell me if I'm correct about the whole write off thing too.

CJ - I figure you might have some info on this, Chuck, you too.

Thanks guys!!!!
rich

posted 06-22-2003 10:47 PM                  

I'm assuming no one knows what to tell me on the board from the lack of responses - I figured that there would be quite a few entrprenours (spelling) on the board that would know - guess I assumed wrong.

thanks though!
rich

posted 06-23-2003 07:04 AM                  

In most states, you expense the lease just as you would a lease on office space, computers, etc. and can purchase at the end of the term at fair market value or for $100 depending on the type of lease.

Most any financial institution will either offer an existing lease package or structure one for you.

I didn't lease my Prowler. I viewed it as a personal item that I wanted registered and titled in my name. I do lease/leased tractors (18 wheelers)and service trucks. I leased my daily driver (Tahoe) registered it and titled it in the company's name and purchased it at the end of the term for $100 plus an administrative fee of $250. I do use the Tahoe on business.

posted 06-23-2003 09:05 AM                  

My cousin runs a small business in Rochester and had his Ford 350 regester in the companies name, but had personal insurance on the truck to save money! He got in a little fendor bender and when the insurance company found out he was using the vehicle for business purposes they refused to cover the damage. He was left high and dry. FYI

My 2 cents...

posted 06-23-2003 01:57 PM                  

I looked into writing off my Prowler when I bought it in '98. My CPA said that I could not write off the entire price. IRS would only allow a max. 16K, I believe it was. Things may have changed since then but I doubt you can write off what you pay for it. You can continue writing off that portion you use it for business tho. There are several ways to do this. Lets say you drive your other car around town putting on 100 miles. Then you drive your Prowler 3 miles (on business) and stay there 6 hours. You used it 25% of the time that day for business so write off 25% expenses. Or you can just write off your actual expenses. Or, what I do, is get total annual miles on vehicle, keep track how much of that was for business, divide it out, and take that percentage of write offs. Some things I claim, some I don't claim even tho I can. That way, if the IRS audited me and said, "You can't take that one..." I can say, "Maybe not that one, but I could have taken this one over here, so I'll take it now." kinda thing.

Disclaimer: I'm not a CPA. Check with your CPA. And if there are any IRS agents reading this, I never said a word of it.

------------------
Mickey
1997 Plymouth Prowler #156
Mopar front splash guards
Real Rod stainless steel transmission cooler cover
1992 Plymouth Grand Voyager SE
Longhorn scratches
Boomerschlobber

posted 06-23-2003 10:56 PM                  

I don't have a "tax man" just yet, but the IRS' web site gave me the document that I was looking for - it's pub 463 in case anyone wants it, here's the link (page 23 is the key):
http://www.irs.gov/pub/irs-pdf/p463.pdf

Basically if I were to buy it, I'd get screwed, BUT if I lease it, well then that's a whole new ball game - of which I could write off 100% (as it would be 100% business use) of EVERY cost associated with the operation of the vehicle - including the lease payment (minues an inclusion value)

unfortunately, for me, the Prowler would be a "collector" car that I would plan on keeping my entire life - I could NEVER EVER lease such a beautiful thing. So I guess I'm going to have to (twist arm) go with a Boxster.

Also a lot bigger decal market in the Boxster as well, since a TON of people have them relative to Prowler folks.

If I'm lucky, and business grows, I'll be able to pick up a good used Prowler.

So don't lose hope in me yet ;-)

thanks all!
rich