leasing car for the dojo

[TallAdam85]

Once again I have a few questions. I need to get a new car soon, and from what I have heard that if you lease a car and put it in your karate schools name and cover it with karate decails it is consider a tax right off is this true? I am wondering because alot of the companys are starting to stop leasing cars.

thanks for the imput

adam

 

[jks9199]

Once again I have a few questions. I need to get a new car soon, and from what I have heard that if you lease a car and put it in your karate schools name and cover it with karate decails it is consider a tax right off is this true? I am wondering because alot of the companys are starting to stop leasing cars.

thanks for the imput

adam

You really need to get solid guidance from a tax accountant, and probably would benefit from working with a business manager. The issues are just complex, and depend on the entire picture, not just tax issues. Don't forget you need to insure the car, which may be much more expensive or restrictive if done through the dojo, as well as maintain it. I know one thing that the IRS will look at is the number of miles driven, and the purpose. Just because it's got your school name on it doesn't mean every mile driven counts as advertising or other school business.

 

[MBuzzy]

You would have to do some tax research, but I would think that as long as you can justify that the car's primary usage is for work, you will be ok. Covering it with decals probably has less of an effect than its usage. Just getting you back and forth....eh, I don't know about that. That is a personal vehicle deal also, but then self owned businesses have different rules. If you can find things to use it for official Dojang business, I think you'll be safe.

 

[terryl965]

you will be able to write off for travel time as well, need to keep a complete log on mileage and maintenance as well. See and accountant before buying and this way you can get the right answers as to your particular needs.

 

[stickarts]

The sales person made leasing sound attractive to us but when we looked at all of the details, it seemed to us that buying was better in the long run. At least you own the vehicle that way. We could have gotten a fairly low lease rate per month but thats money gone with no ownership.