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Financing a company vehicle

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Financing a company vehicle

I’ve been in business about 2 years. I also filed bankruptcy 2 years ago, so my personal guarantee wouldn’t amount to much.

Does anyone have advice? My business does have credit established and I do have a D&B number.

 

also, how would it work for tax purposes, would you claim the car payment as business debt? Does the vehicle have to be in the businesses name?

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Member

Re: Financing a company vehicle

There are a few threads on this, one is pretty recent.  I'd search them out and read.  Ford is probably a good place to start for a business lease or finance.  Good Luck

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Valued Member

Re: Financing a company vehicle


also, how would it work for tax purposes, would you claim the car payment as business debt? Does the vehicle have to be in the businesses name?

You really need to discuss this with a CPA.  The monthly payments are repayment of debt, which is not an expense and not deductible from your income for tax purposes.  What is deductible is depreciation.  IRS rules dictate the method and period over which depreciation is expensed for each class of assets.  Alternatively, there is what is referred to as a Section 179 Deduction that is subject to certain conditions, limits and restrictions, which can be used to expense an automobile in the year it is purchased instead of via depreciation over time, and there are various limits and exclusions based on the type of vehicle and how it is used, in addition to other limits and restrictions.  If you're not already familiar with the details of the various options, you really need a CPA for this one.  I've scarcely scratched the surface on this one.



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