Forums: Discussions for entrepreneurs and small business.

I just incorporated as an S-Corp LLC in April. Finally got a fairly major/diversified contract last month. My question is tax-related. Can I lease a new car from within the business and write it off as a tax expense? I'm currently using mileage expenses vs. car insurance as a cost item for my personal car -- I'm incorporated at my home and drive to the office of my employer -- since my car insurance per month is about 1/2 day's work, but mileage is (at current rates) a much larger amount (33 miles per day).

But if I can write down the car lease as an expense, I'd rather do that. Both of my cars are over 20 years old (don't groan, they are both low-mileage Mercedes, just both old).

Thanks,

Joel

 Well I am not that knowledgeable about tax issues but I think you car lease idea is great, just don't ignore the tax, it may soon get you. Best of luck with your car business...

It's much better to lease a car than buying a car.